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Experienced Member

Inventory Question

HI,

I have a quickbooks premier for new food business, I have a question about the inventory.

We received 40 boxes of (Raw Almond 50lb in each box) at (example): $100.00 each box from a vendor "A", we have received them in our inventory in the quickbooks and have paid the vendor "A" for the product. Now we want to take 20 boxes of these (Raw Almond 50lb in each box) for roasting, Roaster will charge us ($1.00 per lb) $50.00 per box roasting fee and will give us back (2x25lb boxes). If someone can guide me how we can take these 20 boxes from our current inventory to roaster and then bring it back now 40 boxes (25lb box each box) of these roasted almonds.

Thanks

5 Comments
Moderator

Re: Inventory Question

Tracking your inventory items can be a little tricky, Rami.

 

To take 20 boxes (50lb raw almonds per box), we can customer a profile for the Roaster and a zero invoice.

  1. Click Customers at the top menu and select Create Invoices.
  2. In the Invoice window, enter the Roaster's customer profile in the CUSTOMER:JOB field. Create a new one if needed.
  3. In the ITEM column, select the raw almonds item and enter the 20 boxes.
  4. Make sure the amount is zero (0.00).
  5. Click Save & close.

To receive the 40 boxes (25lb roasted almonds per box), we can create a bill under the Roaster's vendor profile. Make sure you neter the correct amounts.

You can use this article for reference: Accounts Payable Workflows in QuickBooks Desktop.

 

I'd also recommend asking guidance from your accountant. They know what's the best way of doing this. 

 

Let me know if you have other concerns.

Established Community Backer ***

Re: Inventory Question


@JamesDuanT wrote:

Tracking your inventory items can be a little tricky, Rami.

 

To take 20 boxes (50lb raw almonds per box), we can customer a profile for the Roaster and a zero invoice.

  1. Click Customers at the top menu and select Create Invoices.
  2. In the Invoice window, enter the Roaster's customer profile in the CUSTOMER:JOB field. Create a new one if needed.
  3. In the ITEM column, select the raw almonds item and enter the 20 boxes.
  4. Make sure the amount is zero (0.00).
  5. Click Save & close.

To receive the 40 boxes (25lb roasted almonds per box), we can create a bill under the Roaster's vendor profile. Make sure you neter the correct amounts.

 


NO

that does not work, by "selling" the stock for zero, you moved the cost of the nuts to COGS, which is an expense

 

that is not correct because the nuts are not gone, you still own them, when they come back from the roaster, the cost of the roasted nuts = original cost + roaster fees

Established Community Backer ***

Re: Inventory Question

@Rami1 

 

You should have an inventory item for roasted nuts

create a cash type bank account called roasting

 

1. use inventory adjust, set the adjusting account to the roasting bank account, and lower the qty of the raw nuts

 

2. when you get the bill from the roaster

2a. in the item details part, list the roasted nut item, the qty of boxes received (if that is how you track it), and the total price from the vendor PLUS the amount in the roaster bank account

2b. in the account details part, select the roaster bank account, and enter that amount as a negative number

2c insure the bill amount due is the same as the vendor bill, save and pay when you want to.

Experienced Member

Re: Inventory Question

Thanks for your reply

What if I do following:

I create an invoice to roaster for the almonds at my cost and then mark it as paid. Then receive the roasted almonds as new inventory from the roaster at my cost plus roasting fees.

Please let me know what you think.

Thanks

Experienced Member

Re: Inventory Question

Thanks for your reply

What if I do following:

I create an invoice to roaster for the almonds at my cost and then mark it as paid. Then receive the roasted almonds as new inventory from the roaster at my cost plus roasting fees.

Please let me know what you think.

Thanks