Manage your Inventory efficiently by creating and building Inventory Assembly item, which can be a combination of inventory part items and/or sub-assemblies into a single item.
An Inventory Assembly item is one type of line items used when creating a sale or purchase form. Creating and adding assembly items to inventory is a two-step process:
Group items and inventory assembly items are similar in that they both let you record a group of items as a single entry on purchase or sales forms, but they also have some important differences.
|Group Items||Inventory Assembly Items|
|Cannot be included in another group item (nested) or in an inventory assembly item.||Can be included (nested) in other inventory assembly items and included in group items.|
|Enables you to print the individual items contained in the group on sales forms.||Prints only the assembly name, not component part names, on sales forms.|
|No reports available specifically for groups.||Appears after inventory part items on standard inventory reports; Pending Builds report lists assembly builds in the pending state.|
|Quantity on hand of each item included in the group is adjusted in inventory at the time of sale.||Quantity on hand of component items is adjusted in inventory when the assembly is built.|
|Sales tax is calculated by individual items included in the sales tax group item.||One sales tax code applies to the entire assembly, even if component item sales tax codes differ.|
|For groups of inventory parts, QuickBooks Desktop tracks inventory of items in the group, not the group itself.||QuickBooks Desktop tracks assembly items in inventory.|
|Price of a group item is the sum of the items in the group (although you can include an item in the group for a discount or additional charge to adjust the simple sum calculation).||Price of an assembly item can be anything you specify.|
|Can include both taxable and nontaxable items.||Must be designated as either taxable or nontaxable.|
|Can include any item type except other groups.||Can contain any of the following item types: service, inventory part, inventory assembly, non-inventory part, and other charge. Notice that you can include other inventory assemblies (sub-assemblies) within an inventory assembly.|
Group items are useful for quickly entering a group of individual items that you often purchase or sell together.
Assembly items let you combine inventory items and assembly costs into new, separately trackable items that represent the finished goods you produce and sell.
I don't plan to or I don't know if I will ever purchase this item from a vendor
I will sometimes purchase this item from a vendor
Congratulations! You have now defined the components of the inventory assembly item and specified a beginning quantity for this item in inventory. In the future, each time you want to add more of this assembly item to inventory, an assembly build must be done.
After you create (define) an inventory assembly item, add assembly items to inventory by "building" them. When an assembly build is performed, the components are deducted from inventory and the quantity of assembly items increases accordingly.
After an inventory assembly item has been created in QuickBooks Desktop Premier or Desktop Enterprise, you can use any edition of QuickBooks Desktop to edit existing assembly definitions.
You can change both pending and finalized inventory assembly builds.
There are three ways to disassemble an assembly and return inventory components to inventory. Choose one of the following options:
The value of your inventory directly affects your financial statements so keeping it accurate helps ensure the accuracy of financial statements. If the value of an inventory item changes due to such various things, such as seasonal demand or spoilage, you'll need to decide if the change is significant enough to warrant a value adjustment.
Component inventory parts and sub-assemblies are increased in inventory and the number of assemblies specified in the build definition is reduced by the difference of the original build quantity and the new one. If the build transaction you're editing is pending, the changes you make do not affect the quantity on hand of components and assembly items.
IMPORTANT: QuickBooks Desktop does not track the quantity on hand of an assembly by specific build. This means that if you've already built the assembly more than once, you may have assemblies remaining from more than one build transaction. These assemblies are tracked as one quantity—even if you edited the components list between builds. We recommend that you sell out of a quantity of assembly items before editing the assembly's components list and rebuilding.
When assembly build transactions are deleted, all component inventory parts and sub-assemblies on the BOM are returned to inventory, and the quantity of the assembly item in inventory is reduced. However, if the deleted build transaction is pending, the deletion does not affect the quantity on hand of components and assembly items.
There are different rules to account for Cost of Goods Sold (COGS). QuickBooks uses the weighted average cost to determine the value of your inventory and the amount debited to COGS when you sell inventory. The average cost is the sum of the cost of all of the items in inventory divided by the number of items.
Here's how QuickBooks compute COGS for an Inventory Assembly item:
Printing assemblies is ONLY available in QuickBooks Desktop Enterprise versions.
COGS should never be affected on a Build Assembly if the item is set up correctly. However, if an assembly item is sold without sufficient quantity prior to it being built, COGS can be affected.
|Here's a sample scenario:
A unicycle (assembly item) was built only after it was sold (on Sales Receipt).
In situations like this, QuickBooks needs to do some adjusting calculations to ensure accounting is correct.
To prevent this issue, you need to build assembly items prior to selling to avoid negative quantities or turn on the preference in Items & Inventory to ‘Don’t allow negative quantities’.