Raw materials tacking

NSOS · ‎February 04, 2019

Hello,

Quickbooks inventory NOOB here.

We are a light manufacturing company that produces custom work and have a separate program that handles all of our order processing, work orders, labor scheduling, invoicing, etc. However, it doesn't handle raw material inventory. We are in the process of setting up our Quickbooks for that. I am wondering what the best workflow is to move inventory from a raw materials asset to COGS expense account without using the inventory assembly or Quickbooks invoicing. I am aware of the inventory adjustment feature, but is that the only way?

PS: We are using Quickbooks Enterprise Platinum

Thanks in advance for the suggestions.

Anonymous · ‎February 04, 2019

If you want to do quantity & value tracking for the raw materials inside of QB then you should use the QB 'inventory item' method which creates 'perpetual inventory' records. This requires you to have well defined units of measure and quantity count both in and out. Physical inventory is then used just to verify. But if your 'raw materials' arrive and are used in bulk (without specific quantity) then this method is hard to do.

The alternate is to use a 'periodic inventory' method which relys on you taking a physical inventory at the end of each period and using that to determine usage. You would use a 'non-inventory' items for this method.

Which fits your workflow?

NSOS · ‎February 04, 2019

Hi Mike, we would like to use the "inventory item" method.

Rose-A · ‎February 04, 2019

Hi, NSOS.

Allow me to take over and make sure you'll be able to use the inventory item feature in QuickBooks Desktop.

As MikeinBC referenced, inventory item requires unit if measure and quantity count both in and out. The single unit of measure allows you to assign only one unit of measure for each item while multiple units of measure let you purchase items in one unit and then sell.

To turn on this feature, here's how:

Go to the Edit menu, then select Preferences.
Select Items & Inventory, then go to the Company Preferences tab.
In the Unit of Measure section, select Enable. Note that if you don't see the Enable button, the unit of measure is already turned on.
Select which unit of measure mode is right for your business.
Single U/M per item
If the Begin defining units of measure checkbox is selected, complete the wizard, then select Finish.
Select OK.

For detailed information, check out this article: Use single and multiple units of measure for items.

If you'd like to go through this over the phone, you can call our dedicated team who will be happy to assist you. Our contact details can be found here along with our opening hours:

Go to: https://help.quickbooks.intuit.com/en_US/contact.
Choose your QuickBooks Product.
Select your QuickBooks version.
On the Contact Us page, click a topic.
Click on the Get Phone Number button to see the support number.

You can always leave a Reply below if you have other questions about inventory in QuickBooks Desktop. Have a nice day.

ScriptDawg · ‎August 29, 2019

Hi there,

I see that others have already answered your question. However, have you considered checking out the QuickBooks Appstore?

You could track your inventory (especially raw and have the tools to convert that raw material into a finished product) outside of QuickBooks and then import all of your financial details back into Katana.

For example, like Katana, when QuickBooks is connected with Katana, you can create invoices and bills in Katana, which will automatically update your QuickBooks account. Clicking the created invoice or bill in Katana opens the document in QuickBooks.

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Raw materials tacking