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Inventory valuation for existing assemblies when changes are made to the assembly BOM

Forum|Forum|3 years ago
October 24, 2022
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What happens to the value of an inventory assembly (in inventory) when an item is added or subtracted to the bill of materials? What are best practices to manage changes to existing assemblies BOMs so that inventory / accounting is completed correctly?

Example - Let's say for example you have 10 assembly items in inventory and you add a new part to this inventory assembly to account for the cardboard box it is contained in.

Does the value of this assembly increase (for all existing assembly items) by the value of the box added to the assembly?

Are the number of new items added to the BOM subtracted from inventory to account what was added to the existing already built assemblies? OR Do only newly built assembly items after the new item is added to the BOM (say the 11th item built) increase in the inventory value?

Are BOM items serialized? As in are there any issues with frequent BOM changes (or perhaps even totally deleting all BOM items and replacing them with new parts (like when you change part numbering schemas)?

QuickBooks Enterprise Suite

Best answer by AlcaeusF

Hi, A8_SP.

I can provide details about your inventory assembly concern in QuickBooks Desktop (QBDT).

Adding a new part to an inventory assembly will not affect the existing or already-built ones. It will only affect newly built assemblies after the new part is added. Also, we haven't received any reported issues yet regarding frequent bill of materials (BOM) changes.

To know more about managing inventories and assemblies in QBDT, consider checking out these articles:

You can also visit our website for more tips and other resources you can use in the future: Self-help articles.

Please let me know in the comment below if you have follow-up questions about inventory or anything else QuickBooks. I'm more than willing to answer them. Take care.

AlcaeusFAnswer