"Work orders" or ways to convert items requiring modification to useable inventory items

Brent530 · ‎January 09, 2024

We order many parts that need modification before they can be used in our primary assemblies. What I'm trying to do is create a system where unmodified parts don't slip through the cracks and interrupt production.

For example, we use a gear box that must have precision dual flat spots machined into the shaft. Let's call the modified gear box item 1234. Additionally, I also have the unmodified version as 1234-NPP (NPP=Needs Post Processing) which is what the brand new items are received under. I converted 1234 to an assembly which only has 1234-NPP in the build.

I've then created a new "work order" template for purchase orders (which I call WOPO). I create the WOPO with our own company as the vendor with Item 1234, who's description is "10:1 Planetary Reducing Gear Box (comes from 1234-NPP)" with a few blank lines and then detailed instructions on how to modify this part.

I generate the WOPO and add a quantity of 5. I give it to the machinist and he does his magic. Once completed, he gives the paper back and -- I thought I could just go to the Receive Items - pick our WOPO and hit save. However, all this is doing is increasing 1234 and NOT executing the build which would remove 1234-NPP's from our inventory.

Is there some better way to do this?? I understand I can simply close that WOPO then manually execute builds for 1234, but I feel like might be a better way?

Any ideas or feedback are very much welcomed. Thanks!

jenop2 · ‎January 09, 2024

Thanks for submitting your question about inventories in the forum, Brent530. Allow me to explain how these processes work in the program and provide relevant guidance about managing work orders and building assemblies in QuickBooks.

Receiving inventory and building assemblies are two important but distinct processes in QuickBooks. Receiving increases the on-hand quantities of the items, while assemblies combine parts into new products.

I want to clarify how each feature works so you can optimize your inventory workflows:

Receiving automatically increases the quantity on hand as it enters into inventory.
Assemblies draw from existing inventory to build finished goods, deducting components.

In other words, simply receiving inventory items into QuickBooks does not deduct those components from your quantities on hand. The Receive function only adds the received items.

To deduct parts from inventory, you still need to manually build assembly items. The Build Assemblies feature will pull components from your inventory shelves and reduce the quantities.

Let me share these articles for more details about these processes:

Understanding the nuances of these processes is key to tracking inventory properly as it moves through work orders and production.

Let me also share these articles in case you need additional resources when tracking inventories in QuickBooks:

Don't hesitate to ask follow-up questions or post new inquiries in the Community if you need anything else, Brent530. Our team is just a post or reply away whenever you need additional guidance on receiving items, assemblies, or any other aspect of using QuickBooks for your business.

Brent530 · ‎January 24, 2024

Thank you for the reply, Jenop2.

Correct me if I am wrong - but it seems to me that, given all of that information, the best way to accomplish the transition from 'unmodified parts' to 'modified parts' is to simply add the modified parts to the main system's BOM directly (which, again, is an assembly which only has the unmodified part in it's BOM). Then, when we execute a build for the system, then the transition will take place. By transition, I mean removing one unmodified and adding one modified.

I was trying to execute builds on each of the modified parts to make this transition happen, but what I seem to be running into is that it wants to execute the build for this subassembly whether or not an on-hand quantity exists for it.

For example:

I have a ring bearing, let's call it item 1234 - and item 1234 is an assembly which references 1234-NPP. We purchased 3, we did our modifications, and then I ran the builds for 1234 which raised it's on-hand quantity from 0 to 3. Of course, 1234-NPP on-hand quantity went from 3 to 0. However, when I try to build the main system which references 1234, I am seeing 1234-NPP on my shortage list. I am quite confused how this could be.

It seems it's ignoring the fact that an adequate on-hand quantity exists and is still trying to execute the build anyways.

Seems like it should be an option somewhere to, ultimately, "use on-hand quantity when available" or something to that effect.

I hope I am communicating my issue adequately. Thank you for your insight.

Nicole_N · ‎January 24, 2024

I appreciate your follow-up on this, Brent530. Let me share some insights about building assembly items in QuickBooks Desktop.

Building Assemblies will pull components from your inventory and reduce the quantities. Based on your scenario, I suggest checking the dates. The date of the new build should be after the previous build of the items in BOM. You can refer to this article for more info: Combine your inventory items to build finished goods (assemblies).

Moreover, I'm adding this article for your future task in QuickBooks Desktop: Adjust your inventory quantity or value.

Keep us posted about any additional concerns. The Community is always around to answer them for you.

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"Work orders" or ways to convert items requiring modification to useable inventory items