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July 22, 2020
Question

I am trying to setup work in process inventory

  • July 22, 2020
  • 7 replies
  • 7 views
No text available

7 replies

Fiat Lux - ASIA
Level 14
July 23, 2020

You may need a manufacturing app and integrate it with your QBO to do so.

Kristine Mae
Moderator
July 23, 2020

It looks like you're referring to WIP, Paultr.

 

In addition to what Fiat Lux - ASIA shared, WIP is accumulating costs in an asset account. Once a project is complete and sold, the costs in the asset account are moved to the Profit and Loss report, an expense account.

 

We're unable to set it up automatically, though. You'll have to manually create a WIP account. Then, use it when creating transactions. Here's how:

  1. Click Accounting.
  2. Go to the Chart of Accounts tab.
  3. Click New.
  4. Select the Account Type and Detail Type.
  5. Enter a desired name, then click Save and Close.

I'd suggest reaching out to your accountant on the best way to categorize the account. They can also help you with the WIP workflow.

 

Let me include the article on how to set up and track your inventory as a future reference.

 

If there's anything else that we can do for you, please don't hesitate to reach out to us again.

July 20, 2021

We currently have the Premier Manufacturing and Wholesale Edition 2021.  Do we need to follow same steps as suggested for a manual WIP account?

katherinejoyceO
Level 9
July 21, 2021

Thanks for joining in, @TVo. The steps shared above is for QuickBooks Online version.

 

I've got you the steps for the Desktop version. 

 

Step 1: Create an account

  1. Go to the Lists menu, then select Chart of Accounts.
  2. Click the Account button, then select New.
  3. Select Other Current Asset for the account type.
  4. Click Continue.
  5. Enter Work in Progress for the Account Name.

 

I'd also suggest consulting your accountant to help you choose the right account.

 

Additionally. I've got you an article about tracking the products you manufacture to help you record the stocks you build using inventory parts. 

 

Feel free to drop a comment below if you have other questions. I'm always here to help you some more.