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LUKE26
Level 1

Coffee roasting inputing inventory/ raw materials

Hi,

 

We are a coffee roasting business and are looking at ways to enter and manage raw materials as inventory on QB Online.

We've already decided to not to use the inventory tracking feature on QBO, but to do this manually on a separate spreadsheet. So we just want to enter raw green coffee as a raw material (as a non-inventory item) and then transfer this to a 'roasted coffee' inventory account on production days via journal entries.

 

So the question is, do I need to create a separate inventory/ raw materials account for Un-roasted Coffee in Products and Services in order to do the journal entries 'migration' or is there another way of doing this?

 

 

 

Solved
Best answer July 05, 2021

Accepted Solutions
Jen_D
Moderator

Coffee roasting inputing inventory/ raw materials

You came to the right place for help with your inventory management ,Luke.

 

Yes, you can create separate SKUs for green and roasted coffee if you want to track both as inventories of the company. Then you may assign the appropriate expense accounts where you want to report the cost of these items.

 

About the Cost of Goods Sold (COGS) these are the cost of doing business. These are recorded business expenses from manufacturing the products that your company sells during a period. Meaning, these are direct cost of producing goods, like the cost of labor, materials, and manufacturing overhead.

 

To learn more about the COGS account and inventory, see the following links: 

 

 

The accounting process for a Coffee business is quite tricky. If you need help with the journalizing entries for the cost adjustments and making sure the production is accounted properly, you can visit this link to find accountants based in the UK: https://quickbooks.intuit.com/uk/find-an-accountant/. Just add your address in the Find and accountant field.

 

This thread will remain open for updates and questions. Post here again if you need further help. Have a good one!

View solution in original post

3 REPLIES 3
Jen_D
Moderator

Coffee roasting inputing inventory/ raw materials

You came to the right place for help with your inventory management ,Luke.

 

Yes, you can create separate SKUs for green and roasted coffee if you want to track both as inventories of the company. Then you may assign the appropriate expense accounts where you want to report the cost of these items.

 

About the Cost of Goods Sold (COGS) these are the cost of doing business. These are recorded business expenses from manufacturing the products that your company sells during a period. Meaning, these are direct cost of producing goods, like the cost of labor, materials, and manufacturing overhead.

 

To learn more about the COGS account and inventory, see the following links: 

 

 

The accounting process for a Coffee business is quite tricky. If you need help with the journalizing entries for the cost adjustments and making sure the production is accounted properly, you can visit this link to find accountants based in the UK: https://quickbooks.intuit.com/uk/find-an-accountant/. Just add your address in the Find and accountant field.

 

This thread will remain open for updates and questions. Post here again if you need further help. Have a good one!

LUKE26
Level 1

Coffee roasting inputing inventory/ raw materials

Many thanks!. I seem to be missing 'non-inventory' option from my QB. Is this only available in an upgrade?

 

 

Ashleigh1
QuickBooks Team

Coffee roasting inputing inventory/ raw materials

Hello Luke26, thanks for coming back to us. It would be a case of  having to upgrade the account in order to do it. 

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