We sell and install garage doors, primarily. Virtually all doors are special ordered. The cost can fluctuate dramatically. How do I get the specific cost of a special order door to flow to inventory when received, then to COGS when the job is complete and invoiced to the Customer?
If I use a non-inventory item #, it flows immediately to COGS (or whatever account I select - but it's final) when I receive the product. This does not reflect reality, since sometimes a door can be in inventory for several weeks or even a month before it gets installed.
If I use an inventory item #, it flows to inventory correctly, but, unless I create a new inventory item for each special order, QB costs them out at the weighted average cost of all the special orders that I have used that item # for.
Is there a workaround? What are others doing with their special order inventory?
Thank you for posting here in the Community. Helping you handle special order items in QuickBooks Desktop is my priority.
Since you need to acquire the specific cost, and there are times the items can be in inventory, you can use the Inventory Part type. I suggest you add the items (ex. door) as a sub-inventory to your special order to be able to change the sales price and to avoid changes to the COGS account when you charge the invoice.
Click the List tab at the top menu bar, then select Item List.
Press the Item drop-down at the bottom and choose New.
Below Type, click Inventory Part.
Put a checkmark on the box beside Subitem of, then select the primary item.
Enter the necessary information.
View the item list.
Also, it would be best to seek expert advice from an accountant to ensure your books are accurate and error free. They'll be able to provide more information about the best way to post them from your inventory going to the respective accounts.
For more information, as well as how to add multiple items in QuickBooks, I recommend the following article: Add, edit, and delete items.
Please know that I'm just a post away if you have any other questions. Take care.