![]() The 2 wheels and 1 frame are referred to as a “Build of Materials”. The report no longer shows the 2 wheels or 1 frame in stock those parts have been “Assembled” into our new bike. After we built the bike, our report shows 1 bike. QuickBooks simply moved the material from raw materials to finished goods.īefore the build, the Inventory Report showed 2 wheels and 1 frame. After we build the bike, the value of our inventory is still $150. ![]() Notice that when we bought the raw materials, the value of our inventory was $150. Building an Assembly in QuickBooksĪfter we enter the Build Assembly, QuickBooks will move the 2 wheels and 1 frame from raw materials (Inventory) to a new finished good (Assembly). Below is the Build Assembly Form in QuickBooks. This process is referred to as a “Build Assembly”. When our techs are ready to assemble the bike, we can tell QuickBooks we are “building a bike”. These raw materials are available to be “assembled” into a new finished product called a “bike”. Our report now shows that we have 1 bike frame and 2 wheels. Once we receive the parts, our inventory report will show the raw materials that we have on hand. The Assembly Process in QuickBooks Buying Raw Materialsįirst, we enter a Purchase order to request a shipment from our supplier. QuickBooks will keep track of the quantity of raw materials we have on hand as well as finished goods. Each bike will consist of 2 wheels and 1 frame. We tell QuickBooks that we are going to create a new finished product called a “bike”. We would like to build a bike and keep track of how many “finished” bikes we have in stock. Our inventory report would show that we have 2 wheels on hand and 1 frame. In QuickBooks we would create an inventory part for wheels and another inventory part for the frame. These would be considered individual components or raw materials. ![]() If you create finished goods from raw materials, you can use the assembly process in QuickBooks. What are Assembly ItemsĪssembly items are often called “kits”. Cost of Goods Sold for an Assembly ItemĮven though this feature is not designed for a highly complex manufacturing process, the capabilities of assembly items in QuickBooks may surprise you. ![]()
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