WIP Inventory

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: 

1. Go to the Customers menu and select Estimates. If you didn't see this option, ensure that the feature is turned on. 
2. Select a customer name in the box. 
3. Complete the Date, Estimate #, Address, and other necessary fields. 
4. Choose the items in the box and type the amount. 
5. Click Save and close. 

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: 

• Work in Process Inventory Guide
• Customize reports in QuickBooks Desktop

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