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mpb2
March 3, 2019
Question

Work/Production Order

  • March 3, 2019
  • 1 reply
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I am a potential purchaser of Quickbooks Online and I have situations where I am not sure  how it can be done or worked around. The senario is this:

I purchase product A that is then converted in a manufacturing process to product B.  The ratio of product A used in product B is never the same due to losses and yields.  I would like to create a work/production order that puts an amount of product B into stock and decreases the stock of product A by an amount I know was used. The cost of product A would then be allocated to COGS of product B.

Can this be done with Quickbooks Online or is there a work around to mimic this process.

Any help would be gratefully received.

1 reply

A
Anonymous
March 4, 2019

I'm glad you're interested in QuickBooks Online, mpb2

 

Yes, there’s a workaround to allocate your production expenses to COGS, and to decrease the amount of product A once it’s turned into product B. Here’s how:

 

  1. You can create items for the production expenses, and assign COGS as their Income Account.
  2. Create a bundle item composed of Item A and the production expense items. This will be your Item B. (Optional) You may not put items into the bundle since you can just add them on your sales transactions.
  3. When you sell Item B, you’ll need to add another line for the items you’ve created for production expenses (manually enter the expense amount on the sales transaction).

Please note that the bundle feature is only available in QuickBooks Online Plus version. 

 

Let me know if you need anything else. 

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