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  #1  
Old 03-16-2017, 04:43 PM
Rpatel Rpatel is offline
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Entering items as inventory

Hello,

I'm hoping someone can help me. I work in manufacturing. I have to enter my unique items in QB and hopefully use the inventory function.

My process starts by receiving raw material. Does that get entered into as COGS sub items? Non-Inventory items?

There are numerous finished items at all different sizes that we sell. Do these items go in as Assembly items?

Sorry new to QB.

Thank you for the help,
RP
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  #2  
Old 03-18-2017, 04:32 AM
Rustler Rustler is offline
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Location: Texas - The Republic
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Raw material that you stock is inventory. If, as an example, you order 1 ton of raw material and use it all in a production run you might be able to use a WIP process rather than an assembly item

IF, if you can define a many to one relationship then you can use an assembly item. QB does not do waste or variable output for assembly items

without more specifics on what you do, hard to say which method is going to work the best
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  #3  
Old 03-20-2017, 05:19 PM
Lorin Browning Lorin Browning is offline
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Location: Landrum SC
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Depending upon the amount of tracking you want to do, you may want to use the standard kinds of inventory:
  • Raw Materials Inventory
  • Work in Progress Inventory
  • Finished Goods Inventory

Cost of Goods is a function of three elements:
  • Beginning Inventory
  • Plus Additions to Inventory
  • Less Ending Inventory

Cost of goods can be calculated at each stage from costing the raw material inventory, through costing the work in progress inventory and, finally, through costing the finished goods inventory. Putting these two concepts together yields a potential of three cost of goods calculations -- using at least nine items in cost of goods computations. The chart of account in the asset section of the balance sheet could have lines for the following:
  • Raw Materials Inventory
    • Beginning Inventory
    • Plus Additions to Inventory
    • Less Ending Inventory
  • Work in Progess Inventory
    • Beginning Inventory
    • Plus Additions to Inventory
    • Less Ending Inventory
  • Finished Goods Inventory
    • Beginning Inventory
    • Plus Additions to Inventory
    • Less Ending Inventory
Both direct labor cost and factory overhead could be applied to valuing inventory at each stage of the process.

I believe you could do this in QuickBooks but I'm not sure its possible with only one Inventory account in the Chart of Accounts.

[This reminds me trying to track and account for Restricted Net Assets and Unrestricted Net Assets in QuickBooks for Nonprofits, as required by GAAP. It can be done if one prints Financials in Excel, making the requisite modification in the equity sections of the chart of accounts.]
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lorin@lorinbrowning.com

Last edited by Lorin Browning; 03-21-2017 at 09:15 AM.
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  #4  
Old 03-21-2017, 06:27 PM
Rpatel Rpatel is offline
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Join Date: Mar 2016
Posts: 18
I will try it

Thank you all for the help. I will try your suggestions and see how it works out for me.

Thanks again for the help!
Rpatel
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