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Karen_Read
April 1, 2021
Question

Buy raw materials in lbs but manufacture and sell in kg

  • April 1, 2021
  • 2 replies
  • 0 views

Hello,

 

We purchase raw materials in lbs, then combine those materials into finished goods that are sold in kg. 

We've used QuickBooks for years, but are just now exploring how advanced inventory and build assemblies can help us track our materials and finished lots.  

 

As we set up our raw materials and build assemblies, how would we set up the units of measure to accommodate the purchase in lbs, manufacture, and finished goods sold in kg?  Any help would be much appreciated.  Thank you! 

2 replies

J
jamespaul
April 1, 2021

Hello, Karen Read.

 

I'm glad you're interested in using other features in QuickBooks! I can definitely help you set up your raw materials in pounds and have it manufactured in kilograms. 

 

You don't actually need to use the Advanced Inventory feature to set up the pound and kilogram settings. You would want to enable the Unit of Measure settings. Here's how: 

 

  1. Go to the Edit menu, then select Preferences. 
  2. Click the Items & Inventory tab.
  3. Go to the Company Preferences tab.
  4. Click the Enable button under Unit of Measure. 
  5. Select the mode of measure for your setup.
  6. Click OK. 

 

Then, create the raw materials and set them up for the pound unit of measure. Next, create the assembly item then add the kilogram unit for it. 

 

Creating the raw materials: 

 

  1. Go to the Lists menu, then select Item List.
  2. Click the Item button, then choose New.
  3. Set it as Inventory Part for the Type.
  4. Under U/M Set, select Add new.
  5. Select Weight and set it as kilogram then continue with the unit of measure set up.
  6. Add the details of the raw material, then hit OK.

 

 

Creating the assembly item form:

 

  1. Add a new item again.
  2. This time, set it as Inventory Assembly.
  3. Add a new U/M Set, then set it for the kilogram unit.
  4. Under Bill of Materials, add the raw materials.
  5. Complete the assembly item settings, then hit OK. 

 

 

When creating transactions such as bills (when you purchase the raw materials), they will show their corresponding units. 

 

Lastly when building the item, QuickBooks will use the kilogram unit and it will be ready to be sold. 

 

 

To build it, click the Inventory menu then select Build Assemblies. 

 

 

Need a quick guide in using the Unit of Measure and Assembly features in QuickBooks? Check out these articles for more details: 

 

 

Ready to create invoices in QuickBooks? You can check this article for a guide: Create an invoice in QuickBooks Desktop. 

 

If you have any other questions, please let me know. I'm still available to help you set up your QuickBooks program for your business needs. 

K
Karen_ReadAuthor
April 5, 2021

Thank you for that detailed explanation.  I think the pounds / kilograms are switched in the narrative (raw material should be pounds and the assembly is in kilograms) but the screenshots made it clear.  Thanks again!

P
pm-elba
August 11, 2021

along the same lines but some materials we purchase in kilograms, others in pounds.

Our formulations would use both kg and lb raw materials but the formulation needs to be final in kg

 

If we create the formulation in percentages would QBE be able to convert the lb's into kg's to get the proper amount

 

Example

Formula is

Water 90% (in kg)

Color 5% (in pounds)

preservative 5% ( in kg)

 

I'd like to make 2kg of the formula - will the assembly build be able to convert the color amount into kg for dispensing ?

M
MirriamM
August 11, 2021

Hello there, pm-elba.

 

Able to convert the lbs into kg to get the proper amount is not possible if you create formulation in percentages. You may need to manually calculate the percentage formula of the assembly and adjust the unit of measure of the part of the assembly for lbs and kg.

 

To know more about ways to assign a unit of measure in QuickBooks Desktop, see this article: Use single and multiple units of measure for items.

 

For additional reference, adding you some articles which you may find helpful:

If you have follow-up questions about this, let me know by commenting below. I’ll be here to help you further. Have a great day.

P
ParagonInkAmeicas
January 11, 2024

If you manually convert the formulation kg to lbs or lbs to kg then whatever unit you sell in the inventory will be off because if you received 30 kg of material and sell 30 lbs regardless of what unit you sell QB does not care about about that QB only see the digital number for example 30 kg is equal to 66 lbs if you sell 66 in lbs the QuickBooks will mark the inventory in 36 KG In negative because again QB only sees numbers the Unit of measure is just a place holder to tell if the price is per lbs or per kg that all. QB is just not the right software to use for this kind of industry. We are in the ink manufacturing industry and struggling to utilize QB for our business. We buy some items in KG and some in lbs and often time we create a formulation that uses both unit items and it messes up the inventory so badly.

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