Manufacturing Inventory - Raw Materials - WIP - Finished Goods
We are a small manufacturing company using QuickBooks Online. We need to setup Raw Materials Inventory - to Work in Process - to Finished Goods Inventory to bill to our customers. I know that QBO does not offer this. Is there a work around or maybe an add on app that will help with this process?
The best workaround with QuickBooks Online has been mentioned, to save your raw materials as products, group them, and then track inventory and costs that way. However, this still means you have to store your bill of materials elsewhere, plan production, and still run the risk of going into negative inventory. The simplest solution to tracking the status of your manufacturing is to integrate a 3rd party tool from the QuickBooks app store. For example, Katana manufacturing MRP can help you with: Production planning; Track inventory in real-time; and Generating bills/invoices in Katana for QuickBooks at a push of a button!
Option 1. Not tracking inventory (by piece) and using manual journals.
Recording production: D Finished Goods C Raw materials
Or, if you track WIP... D Work in progress (when materials are used) C Raw materials (when materials are used) D Finished goods (when production is finished) C Work in progress (when production is finished)
Once invoiced and shipped: D Cost of goods sold C Finished goods
This allows to credit the raw materials (unroasted coffee). But does not allow you to track the value of roasted coffee. I.e. bundles do not understand that you could roast the coffee and sell it at a different time, the functionality presumes that until the instant you sell the roasted coffee, you still possess the unroasted coffee.
Option 3. Choose an inventory or a manufacturing app, that can do it.
In the QuickBooks app store there are inventory apps that support light assembly (simply converting raw materials into finished goods), like SOS Inventory, and several apps for manufacturing (in addition, calendar and capacity scheduling, MRP, shop-floor control), like MRPeasy, depending on depth/complexity/size of your organization. They sync automatically with QBO.