In his blog post “Dealing with Scrap in QuickBooks Manufacturing,” Charlie Russell offered five creative solutions to the problem of leftover parts and materials after a manufacturing project is complete. When manufacturers create a product from a bill of materials, they often find they didn’t need to use as much material as they had expected. […]
QuickBooks Premier and Enterprise provides us with 11 different item types, of which 5 can be used as component items in an inventory assembly. Which should you use, and why? Each of the item types have their own characteristics and uses.
QuickBooks inventory is date sensitive. In addition, the build transaction requires that you have enough component parts on hand to issue the build.
In a prior article I talked about the cost and avg cost fields in the item list. In this article I’ll talk about a related value, the Total Bill of Materials Cost which you will see listed at the end of a QuickBooks bill of material.
Many manufacturers have to deal with scrap in their manufacturing process. That is, the consumption of component materials beyond what is defined in the bill of materials due to waste, trimmings, left over sections or other variable consumptions. QuickBooks doesn’t deal with this directly. Let’s talk about some ways to handle it.
In QuickBooks Premier and Enterprise you can create inventory assembly items, and then create a build transaction to manufacturer that assembly. There are times when QuickBooks generates an error and says it has to shut down just after you issue a build, and the build is not recorded.
Having an adequate supply of component parts is critical to a manufacturer. If you run out of something, you can’t build your assembly. If you can’t build your assembly, you can’t fulfill customer orders. So let’s talk about how to avoid this if you are using QuickBooks.
An important part of controlling your inventory is to make sure that your company financial statements match your inventory status. The inventory asset balance in your Balance Sheet should match the value in the Inventory Valuation Summary report. Unfortunately, these values don’t always match, and in this article I’ll talk about some reasons why this […]
What is the “cost” of an inventory item that you purchase? For many businesses we talk about the “landed cost” of the item, which can include not only the purchase cost of the item, but also the shipping cost of the item. In this article I’ll talk about a few ways to handle this in […]
If you are using QuickBooks to manage your inventory, you need to understand how QuickBooks deals with the cost of inventory items. I’ve been answering a lot of questions about this in the Intuit Community Forums lately, so here is a quick rundown of how things work.