Can I create an inventory assembly for an item that is already shipped & invoiced?
We just realized that we shipped an item in November 2018 that should have been set up as an Inventory Assembly but wasn't so the parts that make up the item weren't properly tracked. Can I go backwards to create the build assembly to correct the problem?
Good day, @PattyO.
Thanks for posting in the Community. I'm here to help share some information about building an assembly for an item that's already been invoiced.
Yes, you can set that up as Inventory Assembly so that you're items are properly tracked. If you already created an invoice for this item, you'll also need to edit that to ensure you have an accurate inventory and financial reports in QuickBooks.
Let me route you to this helpful article for the steps on how to build an inventory assembly item: Create, build, and work with inventory assembly items.
It is best to consult your accountant to guide you in setting up the assembly if you're unsure about the dates and accounts to use. You can also contact us whenever you need assistance with the steps. Here's how to get our contact information:
Let me know if you have other questions about the inventory assembly. I'll be here to help.
Please learn from this input.
"If you already created an invoice for this item, you'll also need to edit that to ensure you have an accurate inventory and financial reports in QuickBooks."
You cannot sell something you don't have in stock, when managing inventory, because selling to negative on hand creates havoc with your accounting data, COGS and Asset valuations. That date of sale, what you sold has been affected if you listed Inventory. If you sell an Assembly item and then Build it later, you need to Date the build on or before the sale.
If you make an assembly item and historically want to show it existed, was Built and Sold, remember you are affecting Everything. If, at this time, you already know inventory is physically on track and counted and financially matched, then you should be very careful. What you are about to do might affect all financial tracking, since the Build moves the asset costs to the new item and the sale might result in Recalculated values for purposes of the P&L.
Or, you realize this was Adjusted, because the sale was not listing the parts or because a different type of item is used for the sale: "so the parts that make up the item weren't properly tracked."
Example: If I remodel your bathroom for a Fixed contract fee, and I quoted this to include flooring and cabinets I keep in stock, you only have Contract Fee on the Sale. I used Adjust Inventory to job track what I removed from stock on your behalf. Or, I don't bother with tracking, and quarterly the warehouse takes inventory, so this is all adjusted as of Year End 2018. You don't want to affect everything historic, by changing that concept historically.
You might just want to move forward with the better concept now that you understand the tools that would be helpful to your accuracy.
selling to negative on hand creates havoc with your accounting data, COGS and Asset valuations.
No it does not. When you sell to a negative, asset value is lowered by the present average cost and posts to COGS
that value might not be right when you buy replacement stock, but at that moment there in no havoc with your accounting. AND when you do buy replacement stock for an item sold to a negative on hand, QB makes the adjustment to both inventory asset and COGS if average cost did change.
If you sell an Assembly item and then Build it later, you need to Date the build on or before the sale.
No. An assembly item will not build at an earlier date if there is no qty on hand, you can NOT order items now and build before that receive date.
Just found this topic, having trouble myself. I think it does create havoc... I've got 2 screenshots, same build, and one screenshot is building the item before invoicing, which debits Inventory @ $263.45, and second screenshot is what happens if I build the assembly after invoicing for it. The Build assembly changes to in addition debiting Inventory asset and crediting COGS at $4.56 which I do not understand at all. Likewise it's the same for the invoice Inventory Asset credits, they change and match based on these changes. So either the value is -$263.45, or it becomes -$268.01 if the $4.56 is added to it. I hope this is clear. I can include more screenshots if needed. Funny enough, the $268.01 matches the average cost for the assembly item of $26.80... can anyone explain any of this?