We are producing a custom item for a customer. They will be charged $20,000 for their first order on Net 30 terms...which covers the full run. They will only be taking a portion. The remainder will be on our property and when we ship out any of the balance, we will only be charging them the shipping cost.
1. Do I set up a warehouse in Sage so that we can omit the inventory cost from our inventory?
2. Do I change the cost per unit on the first order to accommodate the cost and ship the remainder with a $0 unit price when ordered?
At this point, prepay for the whole thing is not an option. I know that this will increase sales for the month of the first order, but also push the cost of products to when it's actually shipped...which could be over years and will affect the profit when those happen.