Landed Cost of an Inventory Item not carrying over the Price to Inventory Assembly

Let me share with you some information about the cost of the Bill of Materials (BOM) and guide you on what to do, sidney1.

Thanks for the screenshots that you've provided. This makes it easier for me to identify the issue. When you sell products to a customer using an assembly, the system will use the original cost of the items in the BOM. You'll have the option to switch from Average Cost to FIFO (First In, First Out) to calculate the value of inventory sold and on-hand. Follow the steps below.

1. Open Advanced Inventory Settings for FIFO:
   1. Select Edit then Preferences.
   2. From the left menu, select Items & Inventory, then choose the Company Preferences tab.
   3. Select Advanced Inventory Settings, then choose the FIFO tab.
2. Select Use FIFO starting on and choose a date.

   Note: QuickBooks recalculates all inventory-related transactions starting on the date you enter. You can start tracking FIFO on any date. If you decide to turn off FIFO later, uncheck Use FIFO starting on, and QuickBooks will once again calculate inventory value using the average cost method.

3. Select OK then OK again to close the Preferences window.
   
   

For FIFO, QuickBooks calculates inventory values based on the assumption that the first inventory items received are the first sold. That's the reason why it is still using the old cost. I've got this article that you can check out: FIFO Options in QuickBooks Desktop Enterprise. If you need help pulling up other reports, you can check these articles: QuickBooks Enterprise Suite Topics. 

Let me know if you need any other assistance with the inventory. I'll always be right here to help you.

Thank you for your quick response,

I'm sorry I should have clarified, I already had my Inventory Preferences set to FIFO. I also made sure my inventory was zero when I received the items that had the Landed Cost added. Shouldn't that have worked? 

Hi there, @User_1234. Thanks for getting back to us and for the clarification.

There are possible reasons why you can't calculate the landed cost for the inventory and assembly item bill. It could be that the bill is missing inventory and assembly items or the inventory and assembly item bill is open, or another user is working on it.
 

If you haven't tried the process of calculating the landed costs, you'll need to calculate the landed cost to reflect it to the item. These steps will guide you how:
 

1. From the Inventory menu, select Calculate landed cost.
2. In the Inventory and assembly items, select Add bill.
3. Select the bill that contains the inventory items you’d like to calculate.
4. Then, click  Add bill.

Once done, you'll need to add shipping and handling items to the bill. The same goes with the steps above, you'll have to select the shipping and handling bills for the inventory you’d like to calculate. Then, click Add bill. Once done, click the Post to bill button to add the landed costs to your bill.

I've gathered a few articles for additional details about tracking your product costs more accurately:

• How to calculate landed cost in QuickBooks Enterprise Services.
• Frequently asked questions about using landed cost in QuickBooks Desktop Enterprise.

If you have other questions, please go back here and post them. The Community is always here to assist you. Take care and have a good one!

Thank you, but that is what I did previously to get the Landed Cost in the first image I posted. I am also the only person in our system. The inventory item, "Widget A", was received and billed at the same time so I don't think that is the issue. 

I've noticed that the correct item cost is reflected in the "FIFO Cost Lot History by Item" Report (see bottom row of attached image), however this is the only place it appears correctly. If this is the only way to see Landed Cost attached to an Inventory item that has been used in an Inventory Assembly, that's fine, I just wanted to make sure I wasn't missing something. Because, unfortunately, the mark up percentages on the "Super-Widget" inventory assembly page is not accurate if this is the case. (See second image posted on original comment) 

I apologize in the image from my original comment it did not have a sales price. The attached image does. I have highlighted the margin% that is technically incorrect due to the Landed Cost not carrying over to Widget A in the Inventory Assembly.  

Hello again, sidney1.

I appreciate you getting back and providing detailed information about your concern.

As mentioned by my colleague above, the reasons why the landed cost for the inventory and assembly item bill doesn't calculate is due to the bill missing inventory and assembly items, and inventory and assembly item bill is open, or another user is working on it. In your case, since you're the only user and confirm what you did on your set-up. This time, I suggest contacting our Customer Care Team. They have specific tools like screen sharing to check your account and explain further how the calculation of landed cost works.

To contact them, here's how:

1. Open QuickBooks. 
2. Go to the Help menu at the top.
3. Select QuickBooks Desktop Help. 
4. Type Contact Us in the search box. Then, click on Contact Us at the bottom. 
5. Select the way you wish to connect with support.

You can also check out this link for more information on how to contact them: Contact QuickBooks Desktop support. Ensure to review their support hours, so you'll know when agents are available.

You may also consider reaching out to your accountant for more guidance in best practices towards the landed costs process.

To learn more about the landed cost feature in QuickBooks Desktop, see the below articles:

• How to calculate landed cost in QuickBooks Enterprise Services
• How to set up landed cost in QuickBooks Enterprise Services
• Landed cost FAQs

Please let me know if you have other concerns. I'm just around to help. Have a great day.