A set of items sold separately - is it alright

Discussion in 'General Accountancy Discussion' started by mister123, Feb 6, 2019.

  1. mister123

    mister123

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    Hello,

    I have the following case. A company buys sets for tea - in the invoice a set is considered as one item - teapot+3cups. Normally they are later sold the same way - in a set. A client wants to make a big purchase but has interest only in the teapots, is it alright to sell just the teapot from a set and then to sell the cups which have left separately to other future clients. I apologize if the answer is obvious but I couldn't find information on the subject.
     
    mister123, Feb 6, 2019
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  2. mister123

    bklynboy VIP Member

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    You can sell any way you want. Not sure what the question is? Is it related to Accounting at all?
     
    bklynboy, Feb 6, 2019
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  3. mister123

    mister123

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    I was just wondering if it can bring any accounting problems.
     
    mister123, Feb 6, 2019
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  4. mister123

    ttreacy

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    It all depends on how the they're inventoried. If you're inventorying the teapots separate from the cups with each having their own costs - than there wouldn't be any issues with selling just the teapots. Now - if you're inventorying the "whole set" as being 1 unit & having 1 unit cost for the whole set (which sounds like it with how you're describing the invoice) - you can come into costing, sales pricing & margin issues. If you want to sell the Teapots separate from the cups, you'll have/want to inventory them separately with each having their own costing - that way your Margins will reflect accurately and if you want to sell the teapot/cups as a set - you could do so as well by creating a separate costing & sales pricing for the set.

    Ultimately - you can sell anyway you want, but if you don't do it correctly - you're margins will suffer... Hope this helps and if you need anymore clarification on anything - let me know.
     
    ttreacy, Feb 6, 2019
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  5. mister123

    Fidget VIP Member

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    Might be worth asking the supplier if they can do you an order of teapots only and therefore fulfill the order without touching your own inventory of sets, since if you split the set, you're left with in the hope that you can sell the teacups without the teapot.

    Can't help but think this question is a wind-up. Client with a fetish for teapots. :D
     
    Fidget, Feb 8, 2019
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