Question

How do I account for raw material in builds?

Forum|Forum|7 years ago
April 9, 2019
2 replies
21 views

We are a small manufacturing company using quickbooks desktop enterprise. Lets say we make different widgets. We have different widgets with different materials. Our widgets are inventory assembly items that pull different raw materials. We do a build assembly at time of completion. As the widget gets done, we create a build assembly to create the widget and use the raw materials.

For planning purposes, how can we use the build assembly feature to show how much raw material we should have left?

Lets say we have 4 different widget orders that would use 1,000 ft of material. we have 1,500 ft of material in stock. How can I set this up so it would show we would have 500 ft remaining for other jobs?

QuickBooks Desktop

J

Joyce_P

Hello there, joneill1186.

The quantity on hand of the raw materials is adjusted in inventory once the build assembly is created. Thus, for the steps on how to account the raw materials in builds, and for the other steps in managing your Inventory efficiently, kindly refer to this article about Creating, Building, and Working with Inventory Assembly Items.

I'd be right here if you have more concerns. Have a good day!

J

joneill86Author

Thanks for the info and help Joyce.

I think going forward we are probably going to set up a "pending" build assembly at time of order creation. Once the "widget" is completed, we will change the "pending" build to complete. This will allow us to see that a production order has also been generated to produce the part as well as seeing what raw material inventory will be used without actually putting the finished item into the FG Inventory

S

ScriptDawg

Have you considered checking out the QuickBooks app store for a 3rd party inventory management tool? There are some pretty powerful ones out there which have help you improve the way you track raw material inventory in your business. Katana manufacturing ERP automatically track inventory movement, so you know in real-time your exact quantity of stock. It also allocates available material to manufacturing orders so you know immediately if you have enough material to complete an order 😊 It is built to be integrated with QuickBooks Online, but the software can be used separately.

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