I import materials for manufacturing and pay customs duties on all imports. Since the manufactured products are sold over time, I am concerned that categorizing the import duties as an expense will overstate my costs. I am trying to find a way to charge off the duty and tax costs (as a cost of goods sold) with each sale of a manufactured product in QuickBooks Premier and Manufacturing. How can I achieve that?
You are referring to absorption costing - where the goods inventory absorbs all the costs related to it before sale. Presumably you have an inventory of goods for sale and an inventory accounting method. If the accounting uses QB 'inventory type items' then the recommended posting will be to make an inventory cost adjustment for the items that were imported, with the offset going to the import tax COG. The import bill itself is handled separately as a normal vendor bill expensed to that import tax COGS account.
This is fairly simple if you import a single item or short list in large quanitities, but can be unweildly if you import long lists of items per shipment. Post back if you need alternates.
What you are describing is called WIP = Work In Process. It's the accumulation of Costs associate with Production and/or sales, not as Expense. WIP = Other Current Asset.
You would post, for instance, Broker Fees, Import Duties, Inbound Shipping and Pallet Costs to the WIP account. Then, for the production run, it depends on if you Produce to have in stock, or produce only when Selling.
Produce to have in stock = you would use Inventory Adjustment for what you just produced (perhaps as Build Assembly), and top left, you pull from the WIP account that amount you determine just got Invested in this production run. That makes your Inventory Products fully costed. Then, QB handles COGS for sales.
If you only Produce when Sold, then the Adjustment can be a JE, but I prefer to also track it for that Sles by Customer, and you Avoid JE for using Names. I make a Vendor Name "WIP" and an Enter Bill for the date I want to Make a job tracked adjustment. List the COGS account or using an Other Charge type item, as the Positive and Job Track this as Not Billable. Now use the Expenses tab and list your WIP account here and put that same amount Negative and no job tracking this entry. Hit the Recalc button. You just Cleared that amount from WIP to COGs for the Name, and this is called "The $0 Bill Method."
I have a Sporting Equipment customer, and we use "WIP" Items for this: "but can be unweildly if you import long lists of items per shipment"
We also do that for Property Flipping = all the Items used for estimates and purchases, such as Windows, Doors, Flooring, Appliances, Electrician, Plumbing, etc are WIP items.
For the production environment, that makes it easier to track per Production Lot or cycle. For my nutritional supplement client, we have to track by Lot # because they can be subject to regulatory issues, inspection ,"sell by" and even Recall notifications.
WIP Broker Fee
WIP Import duty
WIP Pallet (and now you get to include Quantity)
Later, on the WIP Bill, you can use the same items to be the Negative entries, and a COS item as the Positive entry. And the WIP Bill has REF#, allowing for better tracking and reporting.
It's just data flow and what you want to see in your reporting, if you need to access Quantity, etc.
Please see my attachment.