Measuring a customer's cost to serve: assigning waste/expenses

tsfjaxtsfjax Member Posts: 47 ✭✭

Hello all. I am looking for insights on how to measure my margin by customer, specifically "cost to serve." I have a customer who we're helping draft documents for, but they're constantly canceling the job or making changes after we've printed (literally) hundreds of pages. Since we're doing it internally and not through a vendor with a transaction we could tag to them I'm looking for a way (if there is one) to assign the "waste" (for want of a better term) to this particular customer so I can start measuring what it's costing us (and possibly start billing them for all the wasted time and materials).

Has anyone else encountered anything like this?

edited December 17, 2019 in Accounting Technical Support

Comments

  • ConnorMConnorM Member Posts: 1,229 ✭✭✭

    Hey @tsfjax! Thanks for reaching out here, and I'm sorry that this customer is yanking your chain enough that you're looking for this type of workflow. There isn't explicitly a way to track that customer's expense to you at present, without a bit of a workaround. I'm thinking that you might want to follow this Help Center article as a framework to build an account out that you assign unpaid invoices/expenses to, associated with that customer. It'll give you a running balance of how much they've incurred as costs to you.

  • tsfjaxtsfjax Member Posts: 47 ✭✭

    @ConnorM : So sorry for the very late “thank you!” This is a great work-around — thanks!

  • tsfjaxtsfjax Member Posts: 47 ✭✭

    @ConnorM : As a follow up, being able to pull a report with a customer’s gross sales minus expenses that have that customer tagged in it would be a HUGE help in focusing efforts and improving profitability through cost reduction at the customer level. :)

    Thanks again for your help!

  • BoundarylessJedBoundarylessJed Member Posts: 17 ✭✭

    Just found this thread after I posted a new request with details here: https://community.waveapps.com/discussion/8906/measuring-client-profitability-and-costs/p1?new=1

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