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nplant
April 10, 2021
Solved

How can I manage inventory of products that I manufacture by tracking materials then sales of finished goods?

  • April 10, 2021
  • 2 replies
  • 0 views
I make finished pottery. I use clay, glazes and propane in the manufacturing process.
Best answer by Maybelle_S

I can help you manage inventory products in QuickBooks Online (QBO), @nplant.

 

Currently, we're unable to do manufacturing in QBO. Though, we can create your finished product inventory item if necessary. Create a cash-type bank account called WIP. Then, create a vendor called in-house.

 

  1.  Use inventory adjusts, then set the adjusting account to the WIP bank account and lower the qty of all items used.
  2. If outside processing costs were also paid, use this WIP bank as the expense (reason) for the payment.
  3. Bring up an expense transaction, select the in-house vendor.
  4. In the item details part, select the finished item, then enter the qty made. Put the total amount that is in the WIP bank account.
  5. On the account details part, select the WIP account and enter that same amount as a negative number.
  6. Save the zero dollar transaction.

The inventory has been relieved, the costs accumulated in the WIP account, and finally, that total cost paid for the finished inventory item and stocked it with qty and item cost. The WIP bank is zero until you need it again.

 

You can also check our Inventory and projects page in case you want to learn some tips on managing your inventory. 

 

I'm always here to help if ever you have other concerns setting up your inventory.

2 replies

Fiat Lux - ASIA
Fiat Lux - ASIA
April 10, 2021

QBO doesn't offer any assembly feature. You may need an additional app to do so.

M
Maybelle_SAnswer
April 10, 2021

I can help you manage inventory products in QuickBooks Online (QBO), @nplant.

 

Currently, we're unable to do manufacturing in QBO. Though, we can create your finished product inventory item if necessary. Create a cash-type bank account called WIP. Then, create a vendor called in-house.

 

  1.  Use inventory adjusts, then set the adjusting account to the WIP bank account and lower the qty of all items used.
  2. If outside processing costs were also paid, use this WIP bank as the expense (reason) for the payment.
  3. Bring up an expense transaction, select the in-house vendor.
  4. In the item details part, select the finished item, then enter the qty made. Put the total amount that is in the WIP bank account.
  5. On the account details part, select the WIP account and enter that same amount as a negative number.
  6. Save the zero dollar transaction.

The inventory has been relieved, the costs accumulated in the WIP account, and finally, that total cost paid for the finished inventory item and stocked it with qty and item cost. The WIP bank is zero until you need it again.

 

You can also check our Inventory and projects page in case you want to learn some tips on managing your inventory. 

 

I'm always here to help if ever you have other concerns setting up your inventory.

S
Scrapdogandlittlesas
May 6, 2023

Thanks for the solution. I've been looking for how to add inventory we made ourselves to QuickBooks

Will this work on the 2008 Pro edition?. 

E
Ethel_A12
May 6, 2023

Welcome to the Community, @Scrapdogandlittlesas.

 

To be able to add inventory to your 2008 PRO edition,

 

Here's how to add inventory items:

 

  1. From the Inventory menu, choose Build Assemblies.
  2. Note: Don't see the Inventory menu? Go to Vendors and select Inventory Activities. Then Build Assemblies.
  3. Choose the product to build from the Assembly Item drop-down.
  4. Check the quantity available for this product at the top.
  5. Review the quantity on hand, quantity needed, and other info.
  6. Add the Quantity to Build. The numbers in the Qty Needed column get updated depending on the quantity you want to build.
  7. If you use another assembly item to build this product, check Automatically build the required subassemblies. It lets QuickBooks build the assembly that you also use as a component.
  8. You can add a Memo.
  9. Click Save and Close.

 

You can read this article for the detailed steps: Combine your inventory items to build finished goods.

 

To track the sales, you can receive inventory.

 

Here's how to receive inventory with a bill:

 

  1. Go to Receive Inventory dropdown, and choose Receive Inventory with Bill.
  2. From the Enter Bills window that appears:
    1. From the Vendor dropdown, select the vendor.
    2. Select Yes to receive a purchase order for the bill.
    3. Choose the correct PO, then select OK.
    4. Review the information on the Bill.
    5. Click Save & Close.
  3. Proceed to Pay Bills.

 

Here is an article you can read for the detailed steps: Receive inventory.

 

If the version you are using doesn't have this feature, you can upgrade to the latest release: Upgrade to QuickBooks Enterprise from Desktop Pro/Premier.

 

For future reference, here is an article you can read and refer to in creating a purchase order if you want to restock: Create purchase orders in QuickBooks Desktop.

 

Let me know if you have questions about tracking inventory items. I'm always here to help. Have a great day.

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