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Materials are divided into main materials and supplementary materials; the main materials account for the largest portion of the project cost. For main materials purchased separately, it is important to properly control the determination of their prices as well as the methods used to account for any differences in quality. The material price includes procurement and storage fees; in particular, when the project owner supplies the main materials, such fees must be accounted for. The equipment should also incur a custody fee.
Additional information: 1. For equipment, the procurement and warehouse storage costs (referred to as procurement and storage fees) are generally included in the equipment transportation and handling costs; The costs associated with equipment transportation include freight and handling fees, packaging costs, fees charged by the equipment supply department, as well as procurement and warehouse storage costs. The calculation method is: Equipment transportation costs = Original price of the equipment × Transportation cost rate. Procurement costs refer to all the expenses incurred in purchasing, inspecting, storing, and handling equipment; these include the salaries and additional wage costs of personnel involved in equipment procurement, warehouse management, and administration, office expenses, travel costs, the cost of using fixed assets for the equipment supply department’s operations and storage, costs related to the use of tools and equipment, labor protection expenses, and inspection and testing costs. 2. Regarding the installation materials, the procurement fee is included in the base price of the materials, and the base price of the materials is one of the components of the cost of materials for installation work ; The cost of materials consists of: the amount of material used, the basic price of the materials, and the costs associated with inspection and testing. The calculation formula is: Cost of materials = ∑(Amount of material used × Basic price of materials) + Costs for inspection and testing. The basic price of materials refers to the price that the materials acquire during procurement, transportation, and storage ; It includes the original cost of the materials, transportation and handling fees, shipping losses, as well as procurement and warehouse storage costs. For reference