This is using QB Premier Desktop 2020 for Windows.
We are an electronics manufacturer and as such do a fair number of contract manufacturing orders. Most are simple as they provide their own parts and I simply bill them for the service = no new inventory/headaches.
However, I have one CM customer that has us buying the parts and building the finished product. The most recent build was for 100 pieces of finished product with each piece having 100+ unique parts/components each. Given the parts sourcing nightmare market, prices are up, quantity availability from a single vendor is down and chaos is ensuing.
We are a small business and need to ensure that we are keeping our margins. What I would normally do in QB is have the part entered with the part cost and sale price and mark any vendor line items as billable to that customer. However - a part that was originally entered at $2 cost/$4 sale, now costs me $4. QB doesn't have the ability (at least that I know of) to update the cost section for Part X based off the most recent purchase, nor does it have the ability for sale to be: cost * 2 = sale price rounded up to nearest $0.25.
This results in my margins being way below where they should be or massive amounts of rejiggering and TIME (that I don't have) to make sure the customer's invoice is accurate.
Is there anything in QB Premier Desktop (or other program) that would allow something like the following?
In the bank account, it lists all transactions and provides an account total. When transactions are reconciled, it checks them.
Basically a report or coded expense account that can calculate all costs associated with the customer's build to make sure nothing is missed or forgotten, but that can be cleared/checked off as completed/billed??
I’m glad to see you in the Community, AOTT.
I appreciate the detailed information about your concern. This will guide us on how to handle the issue.
When your bank account is reconciled, the transactions recorded in the register will have a checkmark beside each one. However, you’ll only see the Ending Balance amount and not the account total.
In regard to the report or expense account, we’re unable to open one that lets you clear or check off the completed and billed items. I know how beneficial for your business to add the account total for reconciled transactions in the register as well as the option to clear completed assembly. This saves time because you no longer have to manually calculate the amount and create inventory adjustments.
I encourage sending feedback about the features mentioned above to our product engineers. Ideas like this will guide us on what specific functionality in the desktop program needs to be enhanced or added in future updates. Let me help show how the steps to enter product suggestions.
I’m adding some links below to help manage your inventory, chart of accounts, and reconciled accounts efficiently in the desktop program. These resources provide information about the reconciliation process, handling inventory issues, and other inventory-related activities.
Drop a comment below if you have other inventory concerns or questions on how to handle your account register. I’ll be around to assist further. Wishing your business continued success.
You can use billable costs for this. If you set up items in QB and use those items for ordering and billing your customer, then you need to update the cost of each item when issuing a PO or entering the bill. You also have the option of recording the purchase directly to an expense account and marking the purchase as billable on the bill.
First, make sure you have billable expenses turned on: Edit > Preferences > Time & Expenses > Company Preferences > click 'Mark all expenses as billable'
Then, when you enter a bill that contains the items or expenses that you want to bill your customer for, select the 'customer:job on each expense or item line on the bill and check 'billable?'. This keeps a running list of what items/expenses you need to bill the customer for.
Then, when you create an invoice and select the same 'customer:job', you will be prompted to select the billable costs you want to add to the invoice. When you choose to select the billable items/expenses, a window will appear that lists all items/expenses that are waiting to be billed to the customer. This serves as your checklist to make sure you are billing your customer for all items/expenses. At this point, you can choose the markup amount or % for the expenses. If you select items you want to bill the customer for, there is no markup option here - you need to update that cost in the item itself, which should have been done when entering the items on the bill or PO when you ordered the items.
This may sound like a lot, but once you do it once or twice, it's quick and easy.
I hope that works for you. If not, let me know.