Hopefully someone can help - I am trying to figure out how I should value inventory for material that has already been billed to our customer (Facility Management for a University).  So the scenario is that I have construction material that we purchase and charge to a work order which gets billed to a customer.  On some occasions our crew members return material that we purchased and it is not returnable.  At this point it has been billed out already.  So we are attempting to put this back into inventory but are a non profit operation.  We have been putting this back into to inventory at a penny to not recharge customers for material already paid for.  But I dont this this is correct - thought?