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MikeyB
Level 2

Allocating Inventory to a Job

Hello - what is the correct process to follow when allocating inventory items to a particular job (for job costing purposes).... but you do not want those items to appear on the invoice... but still want your inventory levels to reflect the correct quantities?

 

We are a construction company, and our customers accept quotes for the total project costs.

We invoice the customer the quoted price (ie: $10,000 for a project/renovation), and then use materials out of our inventory to complete the work.   How do I post entries within QB Desktop to reflect the materials used for a particular job (DR: cost of goods sold,  CR: Inventory), but not have the program create the sales side of the transaction?

 

Thanks in advance for your help!

Solved
Best answer August 27, 2021

Best Answers
katherinejoyceO
QuickBooks Team

Allocating Inventory to a Job

Hi there, @MikeyB

 

Thanks for sharing what you need to achieve today. At the moment, the ability to transfer Inventory to a Job is unavailable in QuickBooks. However, you can search for a third application that can integrate with QuickBooks. 

 

To look for an app using Dekstop, click on this link: QuickBooks third-party apps.

 

For future reference, read through this article and learn more about reports in QuickBooks Desktop.

 

Let me know if you have more questions. I'll be right up to help you more. 

 

 

View solution in original post

6 Comments 6
katherinejoyceO
QuickBooks Team

Allocating Inventory to a Job

Hi there, @MikeyB

 

Thanks for sharing what you need to achieve today. At the moment, the ability to transfer Inventory to a Job is unavailable in QuickBooks. However, you can search for a third application that can integrate with QuickBooks. 

 

To look for an app using Dekstop, click on this link: QuickBooks third-party apps.

 

For future reference, read through this article and learn more about reports in QuickBooks Desktop.

 

Let me know if you have more questions. I'll be right up to help you more. 

 

 

View solution in original post

MikeyB
Level 2

Allocating Inventory to a Job

Thanks so much for the reply.   That does solve the mystery.... the functionality to transfer inventory items to a particular job does not exist currently in QB.

 

Hopefully it will be a function added in future editions! :-)

Rea_M
QuickBooks Team

Allocating Inventory to a Job

I can see the benefit of being able to transfer inventory items to a particular job will aid you in running your construction company with QuickBooks Desktop (QBDT), @MikeyB. That's why I'm here to share further details about this.

 

We take your suggestions for transferring inventory items to a job as an opportunity on which area of the product's feature we need to improve on. With this, I encourage you to send feedback or product recommendation.

 

Your valuable feedback will be forwarded and reviewed by our Product Development team to help improve your experience while using the program. Here's how:

  1. Go to the Help menu.
  2. Choose  Send Feedback Online.
  3. Click on Product Suggestion.
  4. Click on the drop-down for Type of Feedback and select Product Suggestion.
  5. Select the Product Area.
  6. Then enter your thoughts and suggestions.
  7. Once done, select Send Feedback.

 

I've attached screenshots below for your reference.

 

Also, I'm adding this article to further guide you in managing your business growth and inventory transactions in QBDT: QuickBooks Help Articles for Inventory Management. It also includes related articles about bills, payments, and inventory values, to name a few.

 

I'm all ears if you have other inventory concerns and tracking job costs in QBDT. You can drop your comment below, and I'll gladly help. Take care always, @MikeyB

Fiat Lux - ASIA
Level 15

Allocating Inventory to a Job

@MikeyB 

Inventory management features in QBD are only suitable for retail/wholesale/manufacturing companies. I am not sure they will create an additional feature for a construction company. Consider having a construction management app to integrate with your QBD. You may generate a report like this one later.

 

inventory in construction maangment app.jpg

 

MikeyB
Level 2

Allocating Inventory to a Job

@Fiat Lux - ASIA 

 

Thanks for the reply.   The report you posted is essentially what I am looking to generate by job, however it appears that QBDT has the limitation of not being able to allocate inventory directly to a particular Customer:Job.... when there is a fixed fee contractual pricing arrangement in place.    The program wants to continually invoice for the inventory parts allocated, rather than just track the COGS allocation.

 

I've remitted a suggestion request within QB to the technical development team to see if this can be addressed in future version of the program.

 

Thanks again for your reply

boomerjbm3
Level 1

Allocating Inventory to a Job

Have you tried using the "Adjust Quantity" transaction to post the inventory items used on your job?  If you assign the adjustment to your specific job, it should do exactly what you're wanting:  reduce the inventory item levels and charge the cost of the inventory items to your specified job.   Just make sure when running your Job Profitability report to change the filters so that it picks up "All" accounts, not just "Income/Expense" accounts.

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