Custom Work Defined

Custom is something we make special for a customer. It’s not something we order in and put together. It’s a new piece made by the Service Dept.

We have times where we don’t have exactly what the customer wants, so we will go through an order book and order a blank (no stone in it) ring and order the stone for the ring. Then we put it all together. In this case the sales staff doing the work to find the ring and the stone, would get the income from the parts, but the Custom Section would get the income for setting it all.

In the case of the ring and stone above, these would need to be inventoried through the Inventory Dept.

Anything complete is an inventory item and should go through Inventory so they may put the item in stock. If we find ourselves continuously ordering in the same thing, they would be the ones to make sure we always have it in stock.

Since the sales staff and repairs all work on gross income, it comes down to who produced what. If the sales staff get the parts in and then routes the job to the Repair Dept and letting them know to put it together; the sales staff should get the income for the parts and the repair the labor to do all the work.

If Repairs has to find the items, like a stone, then they would get to split the item with the sales staff as they did the work to find the piece.

When you have a part needed to repair a ring, like a new head; this is the Repair Dept income as that is part of the repair work needed. But that is just like a typical repair item.

You have 1) repair items 2) custom items and 3) items we put together to make the customer what they want. Item #1 is never split with the salesperson. Item #2 is split 50/50 with the sales staff and the Repair Dept. Item #3 Sales gets the parts (if they got the parts in if not it’s 50/50) and Repairs gets the labor.

You have to look at who did the work and who earned the income. That is the question to ask yourself.