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LUMBER CUTTING INVENTORY ISSUE

Forum|Forum|6 years ago
May 8, 2020
2 replies
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I am trying to set up a Quickbooks Enterprise File for a Company that sells lumber. They got the Advanced Inventory Module. So far everything is ok except for one issue that just came to our attention.

As an example, they have an item they sell that measures 12 Feet. If for some reason they need to complete an order and they need 6 Feet, they go ahead and cut the 12 Feet item into two 6 Feet items. Selling one and keeping the second one in Inventory.

I know I need to create the 6 Feet item in Quickbooks, but will Quickbooks know how to decrease the Inventory for the 12 Feet Item and increase the 6 Feet item automatically?

QuickBooks Enterprise Suite

Best answer by MirriamM

Is there a proposed workaround?

Just keep manual records and make the appropriate inventory adjustments daily?

Hello again, @rsalinas.

As mentioned by my colleagues @Anna S and @Klent, QuickBooks Desktop is unable to know if you've halved a piece manually and have no option to automatically adjust measurement. Thus, your client may need to adjust manually the inventory on hand to reflect what you need or may enter the items already processed.

You can consider checking these articles which you may find helpful:

Stop by to the Community again if you have further questions, I'm always happy to help. Have a great day ahead.

Anna S

Hi there, @rsalinas.

Allow me to provide some information about the inventory items you've mentioned.

The way inventory is set up to work in QuickBooks is to help you keep track of the quality on hand you currently have. If your client needs to half one of his inventory items to complete an order, then the system will only subtract the inventory from what you've entered in QuickBooks. For example, if you only have five pieces of a 6 feet item and need another piece to complete the order, so you half a piece of a 12 feet item to complete the request. The program has no way of knowing you halved a piece manually. This means your client will have to adjust the inventory on hand to reflect this manually. These articles provide more information about how the inventory works:

Feel free to post below if you have any other questions or concerns. Best wishes.

R

rsalinasAuthor

Thanks for the response.

Maybe the units of measure will be the solution.

Enter the 12 Feet inventory item and then have the option to sell in in different lengths. Right?

K

Klent

Level 8

I'll share additional information about how inventory works in QuickBooks, rsalinas.

QuickBooks Desktop only updates the inventory quantities and value as you track every purchase and sale. As mentioned above, the program is unable to automatically decrease the measurement of that certain item once we split it into halves.

You'll want to enter the items that are already processed. This way, you'll have accurate records of your inventory. QuickBooks Desktop updates inventory quantities and value as you track every purchase and sale. Here's how to do it.

Select Lists from the top menu bar.
Choose Item List.
On the Item List window, select Item then New.
Select the type of item you want to create.
Fill in the item fields.
Select Custom Fields if you want to add your own customized fields.
Click Save when you're done.

In QuickBooks Desktop Enterprise, you can use the Advanced Inventory feature that enables you to perform these task:

FIFO costing
Multiple location inventory
Bar code scanning
Bin or lot tracking
Serial or lot numbers

I'll be right here to keep helping if you have any other concerns or further questions about inventory. Stay safe and healthy.

C

chelmite

The basic problem is that when buying wood (from a lumber yard, not a big box store), is that it is sliced from trees, and that they are not uniformly sized. I might, for example, buy a set of walnut boards which are 5/4 (1.25"), whose usable widths, lengths, and thicknesses all vary. They are all sold by the same measure, board feet. A board-foot is a measure of volume = 144 cubic inches. The invoice from the lumberyard shows that I bought 8 board-feet of walnut that is 7/4 (about 1.75") thick. That doesn't help me keep track of what I purchased. I need to go and measure the boards and round to the nearest inch. Then I need to decide whether I keep inventory of 4/4 x 6" wide that holds all the lengths, or one QB item for every size that I encounter, e.g., 4/4 x 6 x 72 and 4/4 x 6 x 84, and 4/4 x 6 x 94.5...

Depending on the product/project I'm working on, I need to know what stock I have. I usually categorize (sort, inventory) them by thickness, then width, and then length.

QuickBooks doesn't help at all with this.

To answer an earlier question, if I take a 12' board, and use half of it. The record keeping/inventory involves removing one 12', and adding a 6' board.

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