QB building machine to create demand

heathrnicole · ‎February 23, 2022

How would I create a job to make a machine for stock so as to create demand for all the assembly parts and also track labor?

MichelleBh · ‎February 23, 2022

I'll help you every step of the way, @heathrnicole. I appreciate the quick reply.

Thanks for providing the complete scenario. I'll share some details on how QuickBooks track work-in-process inventory. This way, I can guide you accordingly.

The step-by-step process on the way QuickBooks handles WIP stocks are:

Turn on inventory tracking.
Set up your product’s components.
Add your product’s bill of materials. You can also group your item for products that you buy or sell together but don’t track as a single item.
Build your product. You have the option to combine inventory parts building your finished goods. By doing this, you'll be able to mark the item as pending.
Keep track of what you sell by creating an invoice or sales receipt.
Check your stock and pending builds by running Inventory reports.
Reorder components from vendors by sending a purchase order to your vendor and tracking the item you receive.

For additional knowledge, check out this article: Track the products you manufacture.

In addition, I'd suggest contacting an accountant about this matter. They can provide other workarounds about managing your machine labor and the work-in-process inventory.

Read through these articles to learn more about how to calculate work-in-process inventory and advanced inventory features:

Don't hesitate to contact me here for all your QuickBooks needs. I'm always glad to assist you. Take care of yourself, Nicole.

View solution in original post

JenoP · ‎February 23, 2022

Hi there, heathrnicole.

Can you tell us more details what you mean by building machine to create demand? We just want to make sure we're sharing the right steps and information to help with your quesstion.

Please add a reply below to share more details. We look forward to it. Thanks!

heathrnicole · ‎February 23, 2022

Hi and thank you for your help. It's basically work-in-process inventory.

In QB, if I were to build a machine and pull all of its inventoried parts at the beginning (of building process,) then I would have a machine in inventory ready for sale that isn't complete (it takes 4-6 weeks to build a machine.) So, can't do that.

If I build the machine in QB, like we're doing now, at the end of the building process, then inventoried parts are showing up as on-hand throughout those 4-6 weeks, when really they've already been used to build the machine. So basically if someone makes a sales order for one of said machine parts, QB will think its available for sale because it hasn't been pulled out of inventory yet because we don't build the machine in QB until the end of the process. So, this leaves issues with inventory that need resolved.

The building of the machine, creates a demand (to order more parts) however, without a sales order, the parts used to build a machine that is going to sit in inventory instead of being attached to a sales order aren't being pulled from inventory until one of the two above happens. And in the meantime our actual inventory count is off

One solution is to make my company a customer and create a sales order for the machine thats going into inventory but that doesn't seem like the right solution here.

And how would I track labor for a machine being built to sit in inventory because there's no sales order to charge the labor to.

I hope this helps. I appreciate your time and effort.

MichelleBh · ‎February 23, 2022

I'll help you every step of the way, @heathrnicole. I appreciate the quick reply.

Thanks for providing the complete scenario. I'll share some details on how QuickBooks track work-in-process inventory. This way, I can guide you accordingly.

The step-by-step process on the way QuickBooks handles WIP stocks are:

Turn on inventory tracking.
Set up your product’s components.
Add your product’s bill of materials. You can also group your item for products that you buy or sell together but don’t track as a single item.
Build your product. You have the option to combine inventory parts building your finished goods. By doing this, you'll be able to mark the item as pending.
Keep track of what you sell by creating an invoice or sales receipt.
Check your stock and pending builds by running Inventory reports.
Reorder components from vendors by sending a purchase order to your vendor and tracking the item you receive.

For additional knowledge, check out this article: Track the products you manufacture.

In addition, I'd suggest contacting an accountant about this matter. They can provide other workarounds about managing your machine labor and the work-in-process inventory.

Read through these articles to learn more about how to calculate work-in-process inventory and advanced inventory features:

Don't hesitate to contact me here for all your QuickBooks needs. I'm always glad to assist you. Take care of yourself, Nicole.

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QB building machine to create demand