Get started with manufacturing orders and assemblies

Use manufacturing orders to plan production, track progress, and calculate costs for assembled goods. This operational-first workflow helps define recipes (bills of materials), monitor inventory shortages, and finalize builds for accurate accounting.

Before you start

Note for QuickBooks Desktop migrators

If you migrated from QuickBooks Desktop, your inventory assemblies, bill of materials, and build assembly transactions are included in the migration.

• Pending build assemblies from Desktop appear as Planned manufacturing orders.
• Completed build assemblies from Desktop appear as Completed manufacturing orders with a linked Build assembly transaction.
• Multi level bill of materials with sub assemblies aren't supported in Intuit Enterprise Suite.

Step 1: Set up an inventory assembly item with bill of materials

An assembly item is an inventory item built using other items. You must define the item details and its recipe, known as the bill of materials. The bill of materials details all the component items, raw materials, and services (like labor) required to build one unit of the assembly.


1. Go to All apps , then Sales & Get Paid, then Products & services (Take me there).
2. Select New and choose Inventory (assembly).
3. Fill in the item details, including its name, inventory asset account, sales information, and purchase information.
4. Select Save and add bill of materials to create your recipe.
5. From the items column, add the required inventory, service, or non-inventory components.
6. Enter the quantity of each component required to make one unit of the finished good.
7. Select Save.

Note: The cost of building the assembly is calculated based on the cost of the component items in the item drawer. You cannot start a manufacturing order without a bill of materials.

View or edit an existing bill of materials:

2. Find the Inventory assembly item and select Edit.
3. Select the View/edit bill of materials link.
4. Make your changes and hit Save.

Note: Changes only apply to new manufacturing orders created after the edit.

Step 2: Create a manufacturing order

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

1. Go to 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.
   • (Optional) Select a production Start date and Required by date.
5. Review the component list.
   • Items from your bill of materials populate automatically based on the planned quantity.
   • You can add/remove items or change quantities for this specific order without affecting the bill of materials.
6. 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 exactly how much you’re missing. This takes into account what’s needed for the current manufacturing order, as well as any other open manufacturing or sales orders that use the same component. Select Shortage report on the bottom bar to view a detailed list of missing components to help you plan.

Step 3: Track and complete the build

You can optionally select Mark as in progress from the bottom bar to track the build status. This does not impact financial accounts.

When production is finished:

1. Open the manufacturing order and select Review build.
2. Update the Final build quantity in the header to reflect the number of units successfully built.
3. Enter the actual date of completion.
4. Update the Actual qty in the components table for any non-inventory items or services used.
   • Services/Non-inventory: Enter the actual cost or rate.
   • Inventory items: The actual cost will be calculated based on the inventory valuation method you have chosen once you save the build.
5. Select Save and complete build.

The system creates a background Build assembly transaction to post accounting entries and compute the actual cost. The order status updates to Completed.

Step 4: Manage manufacturing orders

View completed builds

1. Go to Inventory app, then select Manufacturing.
2. Locate a Completed manufacturing order.
3. Select the link to the build assembly to view the transaction.
4. Select View transaction journal to see final accounting entries and production costs.

Edit an order

• Planned or In Progress orders: Find the order in the Manufacturing list, select Edit, update details (Quantity, components, dates), and select Save and close.
• 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. This reverses 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 the Intuit Enterprise Suite. If you downgrade to a plan that does not support manufacturing:

• Existing inventory assembly items: Retained as regular inventory items. You can buy/sell them but cannot track assemblies.
• Bill of materials: Retained as view-only; cannot be edited or created.
• Manufacturing orders: Existing orders and build assemblies are retained as view-only. You cannot create or edit them.

Related links

• Combine your inventory items to build finished goods (assemblies)
• Set up your product’s bill of materials