Inventory item setup

You need to Not be using QB Pro, but Premier. Install it as Manufacturing/Wholesale, or as Retail. That gives you Assembly Items, to do what you asked here: "They will not be exclusively manufactured in house - we may still purchase the finished good from outside suppliers.  I am trying to figure out how to set up one inventory item, "Item1" that could be received two different ways:'

This is Purchase: "1. From Supplier Y for X dollars"

This is Build Assembly: "2. Manufactured in house as an assembly item (that will deduct the component parts from our inventory)"

Never set up Two Items. It's the same item. Read about inventory Assembly Item.

Hi there,   

Well, firstly you’ll need to make sure that you’re on the correct package so there’s a chance you’ll need to upgrade your software.   

However, even if you do that, the manufacturing modules on QuickBooks aren’t up to speed for modern product making businesses.   

Have you considered looking into the QuickBooks apps store for a solution to help you with the manufacturing aspect of your business? There are some apps, like Katana, which you can use to monitor your manufacturing capabilities, but still, manage your supply chain and different selling channels from one dashboard.   

So, if you want to separate your inventory levels, bought goods and manufactured goods, you can easily track different levels of stock.