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Non-Inventory items and Cost of Goods Sold

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  • Non-Inventory items and Cost of Goods Sold

    Background: truck upfitting shop using Quickbooks Manufacturing/Wholesale 2014

    Issue: Our non-inventory items don't hit COGS account until we receive the bill. This can be a waiting time of 1-2 weeks, which is unacceptable.

    Solution: Would using the Item Receipt function for Non-Inventory items solve this? The other side of the AP entry would be COGS (as they're not Inventory parts).

    Has anyone else dealt with a similar issue?

  • #2
    Question:
    Are you receiving the parts BEFORE the bill?
    Why do you need the parts amounts to enter into COGS before the bill?
    Joe Williams
    joewilliams@wavelinx.net
    Piedmont, Ok

    Comment


    • #3
      Non Inventory Parts to COGS

      I am interested in this thread.

      We use Enterprise Contractor and use COGS and class. Our item list has non-inventory parts that either direct to Revenue or to COGS e.g. Purchases. This is how the accountant set up QB so it would job cost by quarter.

      Now that the company wants to job cost internally, the item list as is has become a big question. If we job cost using QB features, we cannot use the item list as is.

      Currently a project coordinator uses non inventory items for item receipts to by-pass using QB to track inventory.

      It has become a matter of QB being too user friendly for non-accountant personnel.

      I am interested in this thread to learn or contribute a bit about using non inventory parts in job costing.

      Comment


      • #4
        @ Millady

        Inventory for job costing can be done in one of two ways:
        1. inventory adjust, set the adjusting account to the job expense account or COGS, lower the qty on hand, and top right select the customer/job
        or
        2. create an invoice for the job and sell the inventory for zero price. When I do it this way I add a -P to the invoice number so I know this is a parts invoice and the same number (without the -P) is used for the job invoice so they stay together in the transactions listing

        non-inventory posts to the expense account on the item screen immediately

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        • #5
          Non Inventory Items

          I do not wish to hijack this thread from EmbraceMadness

          We do not wish to track inventory. Like EM we enter non inventory items knowing they do not post to COGS until the bill is received, unlike EM this is acceptable. Likely items change between ordering and receiving, so we concern ourselves only with actual. EM may like to track what is ordered but I don't find a way in QB to do that until inventory is committed.

          My question relates more to job costing than inventory. We are looking to use items when billable to create invoices in QB.

          I think I should start my own thread.

          Sorry about that EmbraceMadness.

          Comment


          • #6
            Originally posted by Joe Williams View Post
            Question:
            Are you receiving the parts BEFORE the bill?
            Why do you need the parts amounts to enter into COGS before the bill?
            We are receiving the part before the bill. We need a COGS figure because one department tends to invoice before the bill is received.

            Comment


            • #7
              You should probably enter an Item Receipt when you receive the items and when when you receive the bill, edit the Receipt to a bill.
              The Non-inventory items can use the Cogs account and it will increase with the Item Receipt but the Item Receipt amount will not show as owed.
              Joe Williams
              joewilliams@wavelinx.net
              Piedmont, Ok

              Comment

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