Inventory Converstion Adjustment

Converting a large size of the product to a smaller size when creating a Purchase Order in QuickBooks Desktop (QBDT) isn't supported, . I'll share some insights about inventory conversion.

To convert the product to smaller pieces, you'll need to set up the unit of measure (U/M) since you've purchased the item in a large size. When you create a unit of measure set, you can specify which unit of measure appears by default when adding an item to a purchase form, a sales form, and a shipping picklist.

If you haven't enabled your Unit of Measure. Please follow the steps below:

1. Go to the Edit menu, then select Preferences. 
2. Select Items & Inventory, then go to the Company Preferences tab.
3. Under Unit of Measure, pick Multiple U/M Per Item.
4. Finally, click OK.

To learn more about managing inventories and assemblies in QBDT, consider checking out these articles:

• Track the products you manufacture.
• Combine your inventory items to build finished goods.
• Adjust your inventory quantity or value in QuickBooks Desktop.

Feel free to leave a comment below if you have follow-up questions about inventory conversion adjustment. We're always here to help.

We make packets for first aid kits, where I use big boxes of materials from inventory to make the packets.  Here's what I do:

Big boxes of the item being used are already in inventory with a cost associated.

I created a "vendor" called "FVS USE Inventory Adjustments"

When I make packets, I use 1 big box to get 25 packets.

Create new bill (see attached screenshot):

item 1:  Big box with a NEGATIVE quantity of 1.

item 2:  Packets with a POSITIVE quantity of 25. 

Change the amount of item 2 to match item 1.  This will transfer the COGS from the big box to the packet.  The bill total should be 0.

By creating the 0-dollar bill, it takes the big item out of inventory and adds the small items into inventory.

Hope this helps!