# Cost price of a service: materials, spare parts, subcontractors

URL: https://bimpsoft.com/en/help/service/service-cost/
Updated: 2026-11-06

> The cost price of a service in Bimp is the costs accumulated on a Work order: materials, subcontractor services and direct expenses. They accumulate in three ways and pass into the cost price when the sale is posted and with the "Cost allocation" document; the result is visible in the "Gross profit" report.

## How the cost price of a service is formed

The cost price of a service is the sum of the costs accumulated while the work is done on a Work order. Without it, Bimp shows all the revenue as profit: if a repair is sold for 10,000 UAH and 3,000 UAH of spare parts were used, the real profit is 7,000 UAH.

The process is as follows:

1. Create a [Work order](https://bimpsoft.com/en/help/service/work-order/) for the service you sell.
2. [Accumulate costs](https://bimpsoft.com/en/help/costing/cost-accumulation/) in one of three ways (below).
3. Create a "[Sales of goods and services](https://bimpsoft.com/en/help/sales/shipment/)" document based on the Work order: the costs pass into the cost price.
4. Check the result in the "Gross profit" report.

## How to set up a service for cost accounting

A service to which costs accumulate (sold or received from a subcontractor) must have correct accounting in its card:

1. Open **Directories → Products and services** and create a service with the **Create** button.
2. Fill in the "Name" and set the "Type" to **Service**.
3. In the "Expense account" field, choose "Work in progress" or another item with the type "Cost price".

If you need your own item, create it in the expense items directory with the type "Cost price" — see [Income and expense items](https://bimpsoft.com/en/help/getting-started/income-and-expense-items/). Costs under an item of another group do not enter the gross profit calculation.

![Card of the service "EVENT_Організація заходу": type "Service", the "Expense account" field is "Work in progress", unit "serv.", SKU EVENT_1](https://bimpsoft.com/help/_img/38c0b1b9-cc8b-465a-b666-c228de7c21d0.webp)

## Method 1. Writing off materials and spare parts

Materials are written off to the cost price with the "Stock transfer (to cost price)" document:

1. In the Work order, click **Create based on → Stock transfer (to cost price)**. If the spare parts are already planned, create it based on the [Warehouse defect list](https://bimpsoft.com/en/help/service/defect-list/) — the table is filled in automatically. You can also create it based on a "[Goods receipt](https://bimpsoft.com/en/help/purchasing/goods-receipt/)", in which case the "Base document" is filled in with the Work order.
2. Make sure the "Operation type" is "Cost price". An ordinary transfer between warehouses does not affect the cost price.
3. Add the materials used. The "Order" column is filled in automatically.
4. In the "Service" column, choose the service the costs are assigned to. If you leave it empty, the costs are distributed among all services of the Work order.
5. In the "Expense item" column, choose an item of the "Cost price" group, for example "Work in progress".
6. Save the document.

![The "Stock transfer" document with the operation type "Cost price" and the row "Корпоративні подарунки" 50 pcs; the columns "Order" (Work order No. 1), "Service" (EVENT_Організація заходу) and "Expense item" (Work in progress) are filled in; destination warehouse "Work execution"](https://bimpsoft.com/help/_img/4cadac24-19ae-4a79-8d6f-ef41e13453f9.webp)

To avoid filling in the columns in every row, fill in "Expense item" and "Service" in the first row, hover over the cell, click the "three dots" menu and choose to fill the column for all rows.

Materials needed beyond the specification norm should be added to the same or a new transfer with the same item and service — they also go to the cost price.

> [!WARNING]
> Choose an expense item of the "Cost price" group. An administrative item (for example, "Office expenses") writes the amount off to the company's overall result, while the cost price of the repair stays zero.

## Method 2. Subcontractor services

When a subcontractor does part of the work, their service increases the cost price and at the same time creates a debt to them:

1. Based on the Work order, create a "[Supplier order](https://bimpsoft.com/en/help/purchasing/purchase-order/)" and choose the subcontractor's service (with the expense account "Work in progress" or an item of the "Cost price" group).
2. Based on the order, create a "Goods receipt" of this service.
3. Check the debt in the "Settlements with suppliers" report — see [Settlements with suppliers](https://bimpsoft.com/en/help/reports/supplier-settlements-report/).

Such costs pass into the cost price with the "Cost allocation" document (see below). For more on purchasing services at cost price, see [Purchasing services](https://bimpsoft.com/en/help/purchasing/purchase-services/).

## Method 3. Direct expense write-off on payment

Other direct expenses (logistics, business trips) are written off with the "[Other expenses](https://bimpsoft.com/en/help/finance/period-expenses/)" document:

1. In the **Finance** section, create an "Other expenses" document.
2. In the "Main" block, turn on the "To cost price" switch.
3. Choose the "Expense item" — "Work in progress" or another with the type "Cost price".
4. In the row, specify the amount, the "Work order" (base document) and the service.

If you do not choose a service, the costs are distributed proportionally among all services of the Work order.

![The "Other expenses" document with the expense item "Work in progress": a row for 195,000 UAH linked to Work order No. 1 dated 21.11.2025 and the service EVENT_Організація заходу](https://bimpsoft.com/help/_img/dfe2b21a-3777-4e56-a858-c94f0ca416dd.webp)

The total amount of costs accumulated in any way is visible in the "Accumulated cost" report — see [Accumulated cost](https://bimpsoft.com/en/help/reports/accumulated-cost-report/).

## How costs pass into the cost price

When the service is provided, create a "Sales of goods and services" document based on the Work order. On posting, Bimp automatically writes off the accumulated materials (method 1) and the costs from the "Other expenses" document (method 3).

Accumulated subcontractor services (method 2) are written off with the "Cost allocation" document:

1. In the **Warehouse** section, create a "Cost allocation" document and in "Main" set "Allocate to" to "Services provided".
2. On the "Products" tab, click **Fill**: the services provided for the period are pulled in.
3. On the "Costs" tab, click **Fill**: the accumulated costs are pulled in.
4. Go back to the "Products" tab, click **Allocate** and choose the basis: "By product quantity" or "By product amount".
5. Save the document.

![The "Cost allocation" document on the "Costs" tab: allocated to "Services provided", the row "Work in progress" 400,000 UAH for Work order No. 1, at the bottom 400,000 UAH allocated and 400,000 UAH charged](https://bimpsoft.com/help/_img/8d55df5f-e2bd-4e66-8bc1-15050c7390ac.webp)

For more on the document, see [Allocating indirect costs](https://bimpsoft.com/en/help/costing/cost-allocation/).

## How to check the cost price in reports

Open the "Gross profit" report and find the sale: the "Cost price" column shows the sum of all written-off costs. If it shows zero, check the expense item and the service in the write-off.

![The "Gross profit" report for 01.11.2025–27.11.2025 grouped by customers: the service "EVENT_Організація заходу", revenue 2,500,000 UAH, cost price 945,000 UAH, gross profit 1,555,000 UAH, profitability 62.20%](https://bimpsoft.com/help/_img/7262d15c-2329-47f3-854c-6707edd2fd3a.webp)

The "Accumulated cost" report (costs for open orders) and the "[Income and expenses](https://bimpsoft.com/en/help/reports/profit-and-loss-report/)" report are also useful — in it the cost of materials appears in the "Cost of sales" row. For more, see [Gross profit](https://bimpsoft.com/en/help/reports/gross-profit-report/).

## FAQ

**Why is the cost price of a service zero in the "Gross profit" report?**

Most likely the "Stock transfer (to cost price)" document has no expense item of the "Cost price" group or no service specified. An administrative item (for example, "Office expenses") writes the amount off to the company's overall result, not to the cost price of the repair.

**What happens if I do not specify a service in the expense write-off document?**

The costs are distributed proportionally among all services of the Work order. To assign them to a specific service, choose it in the "Service" column.

**How is an ordinary transfer different from a transfer to cost price?**

An ordinary transfer only moves goods between warehouses and does not affect profitability. Only "Stock transfer (to cost price)" assigns the value of materials to the cost price of the order.

**Where can I see costs for open orders?**

In the "Accumulated cost" report: it shows the costs of Work orders for which the sale has not been posted yet.