Difference between sales price and purchase price for service item

Discussion in 'Microsoft Accounting' started by jranan, May 5, 2006.

  1. jranan

    jranan Guest

    What is the difference between the sales price and the purchase price?

    I figure the sales price is what the customer actually pays so....

    how does the purchase price effect a company? Does is get recorded as cost
    of goods sold or something?
     
    jranan, May 5, 2006
    #1
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  2. Hi jranan,
    Are you referring to a labor charge?
    Your purchase price is what the employee time costs the company to provide
    the service. Hourly rate plus all costs to you for that employee.
    The sales price is what you charge the customer for that employee time.

    Chris Schatte
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    "jranan" wrote:

    > What is the difference between the sales price and the purchase price?
    >
    > I figure the sales price is what the customer actually pays so....
    >
    > how does the purchase price effect a company? Does is get recorded as cost
    > of goods sold or something?
     
    Chris Schatte, May 5, 2006
    #2
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