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I purchase a product, cuvettes, that I resell to customers. I also have a different Vendor who creates a kit to be sold with a unit I produce. In this kit I provide cuvettes for the creation of standards. I have some questions on how to handle this.
1. I already have an inventory item for the kit.
2. I already have an inventory item for the cuvettes.
3. I am assuming I can create and inventory assembly with these two items so the expense of the cuvette is worked into the cost of goods sold for the finished kit.
4. Should/can I move some of the cuvettes to another item number for this purpose? How does this effect sales tax? If so, how.
Hi there, @smorgan01.
Are you're trying to use cuvettes to assemble other items? If that's what you're referring to, then the answer is yes.
Once you build an item, you'll have to create a separate sales tax code. Therefore, this won't directly affect the sales taxes of your product and services when creating an assembly.
To set up your components and build a single product, follow these steps:
Once done, you can start building your products. Check out this article on how to build and track your finished goods: How to Assemble your product in QuickBooks.
QuickBooks reminds you when it’s time to build more products. If you need a quick overview of your inventory status, you can run reports anytime. Just go to Reports and then select Inventory.
In case you need to restock your components, send a purchase order to your vendor. Then, track the items you receive.
Moreover, you can see our Inventory Assembly Overview for more info about this process.
If you have any other QuickBooks-related concerns, feel free to write them down below, smorgan01. I'll be happy to answer all of them for you. Have a great day ahead!
No. Thanks but I understand how to do a build assembly. My question revolves around having a product, cuvettes, that are used in two different ways.
1st way - resell directly to customer (just cuvettes)
2nd way - used as part of a build assembly (part of a kit)
I guess my question is, should I leave the entire inventory under one item number? Or, should I split it into two item numbers? One for the inventory I use for reselling to my customers and the second for what I use in the build assembly? If this is what I should do how do I split the inventory?
I appreciate you for getting back, @smorgan01. Let me share with you some additional information about inventory items and assembly in QuickBooks Desktop (QBDT).
Usually, when you start building an assembly or combining your items, you don't need to worry about manually tracking your product's parts or materials since the system updates the stock of components you use automatically. Thus, you won't need to create a separate item for the assembly and for what you sell to your customers.
However, if you want to use separate items for your transactions, set up a new item from the Item List.
To learn more about how inventory assembly items work, you may check out this article: Combine your inventory items to build finished goods.
Just in case you want to delete or modify your items in the future, you can also review the resources from this link as your guide: Add, edit, and delete items.
If you have follow-up questions about your items, let me know by adding a comment below. I'm always here to help. Keep safe!
Hello!
Yes, QuickBooks Desktop supports inventory assemblies, so you can create an assembly item that includes both the kit and the cuvettes. This will allow the cost of the cuvettes to be included in the Cost of Goods Sold for the finished kit.
To set this up:
Go to Lists > Item List > New > Inventory Assembly.
Add the cuvettes and other items in the kit to the assembly with their quantities.
QuickBooks will track the combined cost when the assembly is built.
If you prefer not to use assemblies, you could create a sub-item for cuvettes reserved for the kit. Sales tax typically applies based on the finished product, so consult a tax professional if unsure.
Alternatively, Cleverence Warehouse 15 offers tools to simplify inventory tracking and assembly management with mobile devices. It integrates with QuickBooks and lets you print barcode labels, track inventory movements, and ensure accurate records, improving efficiency for tasks like this.
Check it out here: Warehouse 15 for QuickBooks
https://www.cleverence.com/solutions/quickbooks-warehouse-15/
Hope this helps!
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