Plan and track production with manufacturing orders and build assemblies

After setting up inventory assembly items and bills of materials, use manufacturing orders and build assemblies to plan production, track progress, and calculate costs in QuickBooks.

Create a manufacturing order

Use a manufacturing order to plan and execute a production run. This tracks progress without affecting financial accounts until the build is marked complete.

1. Go to the Inventory app, then select Manufacturing.
2. Select + Create manufacturing order.
3. Select the Inventory assembly item you plan to build.
4. Enter the Quantity to build.
5. Select a production Start date and Required by date.
6. Review the component list; items from your bill of materials populate automatically based on the planned quantity.
7. Add/remove items or change quantities for this specific order without affecting the bill of materials.
8. Select Save.

The order defaults to Planned status. The components needed are added to the quantity on MO field in your products list and reports.

Check for shortages

If you don’t have enough of a component in stock, the shortage column shows the exact missing amount. This calculation considers requirements for the current manufacturing order and any other open manufacturing or sales orders using the same component. Select Shortage report on the bottom bar to view a detailed list of missing components to assist with planning.

Track and complete the build

Update the status as production moves from planning to completion.

Update status

• Planned: The initial stage where components are reserved.
• In Progress: Change to this status once you start the build.
• Completed: Select Mark as complete to finish the order.

Finalize the build assembly When you mark an order as complete, a build assembly form opens automatically.

1. Review and adjust the final quantities and costs for components and services used.
2. Select Save and close.

Saving the build assembly increases the stock of the assembly item and decreases the stock of individual components.

Manage existing orders and builds

Edit completed builds

1. Go to the Manufacturing list.
2. Select the link in the Build assembly column to open the form.
3. Make necessary edits to costs or quantities.
4. Select Save and close.

Delete an order

• Planned or In Progress: Deleting the order permanently removes the transaction and releases reserved inventory.
• Completed: Deleting a Manufacturing order also deletes the linked Build assembly transaction, reversing all inventory and accounting entries.
• Build assembly only: If you delete only the Build assembly transaction, the linked Manufacturing order reverts to In Progress status.

Understand costs and plan changes

Cost calculations

• Estimated cost: Calculated based on the default purchase cost of components entered in the products and services page.
• Actual cost: Computed when you complete the manufacturing order and save the build assembly.
• Inventory items: Based on your inventory valuation method settings.
• Services/Non-inventory: Based on actual rates entered on the build assembly page.

Impact of plan downgrades 

Manufacturing features are currently available in Intuit Enterprise Suite. If you downgrade to a plan that does not support manufacturing:

• Existing inventory assembly items: Retained as regular inventory items (buy/sell only; no assembly tracking).
• Bill of materials: Retained as view-only; cannot be edited or created.
• Manufacturing orders: Existing orders and build assemblies are retained as view-only; no new creation or editing.