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Hi,
I need help with our inventory. We use two contract manufactures to create some of our inventory. One makes the product while the other packages it. I need to see if there is a way to receive the initial product in so I can enter the bill, but not enter it into actual inventory until it comes back packaged. I get a bill for the product when it goes over to be packaged, but I don't have it in my warehouse until it comes back packaged. Right now I have a inventory item for the product prior to packaging and then a finished product for when it comes to me. My boss doesn't want it to hit COG's until we have it in the warehouse from vendor 2, but I still need to pay vendor 1 thirty days from when it was made and shipped to vendor 2
Any help is much appreciated
You're in the right place for answers, @captesq. I hope you're having a fine day.
Thank you for sharing how your WIP inventory works in your account. Happy to provide a solution to receive the initial inventory product in QuickBooks Desktop. This way, you can enter the bill.
With this, I'd suggest creating a non-posting transaction which is estimates. Let me show you how:
For more details about the process, see this link: Create an estimate in QuickBooks Desktop.
After that, you can now create a bill for that products.
Additionally, check out these articles below to learn more about WIP inventory and customize reports:
I'm always here to answer other questions you might have about QuickBooks. Keep safe, captesq.
Inventory items do not hit COGS until they are sold.
There is nothing in QB that handles this aspect, in QB if you receive the item it is in stock, even if you use receive without bill.
One way to do it would be to enter the first receipt as an entry to an asset account you create called WIP.
Then when you get it packaged enter that bill for the items, change to the expense tab and select the WIP account and enter the amount as a negative number, then change back to the item tab and change the total price for the items by the amount you entered from the WIP account.
ie
first bill
Expense tab - WIP account, $5,000
second bill
item tab - widget, qty 10,000, total price $3,000
expense tab - WIP account, -$5,000
item tab - widget, qty 10,000, total price $8,000
bill will total to the bill amount of $3,000, the item will stock with a qty of 10,000, and the cost per item will include the packaging costs as it should [ (3,000+5,000)= 8,000 / 10,000 = 0.80 each
Hi Rustler,
Does this account for the bills from two different vendors? I have the concept, but want to make sure before I do anything.
Thanks again for the help
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