My client, a construction contractor, has a new job where the customer will be supplying all materials.
What will happen is the customer will sell them to my client, and also pay my client the exact funds to pay the bill.
There will be zero mark-up. My client will use the funds to pay for the materials.
The purpose here will be better logistics, as the materials will be available on-site where the job is performed.
Does my client need to include these materials in Cost of Goods Sold? total cost of materials is $1.2 million.
My client wants to call this job a "labor only" job.
Consignment issue?