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Anonymous
Not applicable

Double inventory when entering qty and COGS for raw inventory asset. How to adjust?

We purchases raw inventory from 3 suppliers to make our finished good. When we buy the raw inventory, I put it in the "Raw Inventory" account as an inventory assest. When the production is complete, I enter the QTY and the COGS. Which is then my beginning inventory. I am coming up with double the inventory amount since I am including raw inventory as an inventory assest still. How should I make this adjustment for when the inventry is finished? I want my inventory value to only be from the QTY times COGS, not based off of raw material inventory expense.

 

Thanks!

 

 

(Title has been edited by moderator for clarity)

Solved
Best answer October 30, 2017

Best Answers
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Level 8

Double inventory when entering qty and COGS for raw inventory asset. How to adjust?

My pleasure. 

 

Although QuickBooks Online Plus doesn't handle inventory assemblies as discussed in your original post, the closest feature available is inventory bundling. This groups together multiple products/services that are sold in one single package: https://quickbooks.intuit.com/blog/whats-new/improving-your-efficiency-introducing-quickbooks-bundle....

 

For additional resources on setting up inventory tracking, cost accounting, and COGS, please feel free to check out the following articles: https://community.intuit.com/articles/1145670 and https://community.intuit.com/articles/1145499. 

 

I'm here if you have any further questions. 

 

View solution in original post

5 Comments
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Level 8

Double inventory when entering qty and COGS for raw inventory asset. How to adjust?

Hi gkolb92, 

 

I'll do all that I can to help you track your inventory. 

 

Can you please share if you're using QuickBooks Online or QuickBooks Desktop, as well as the specific version? 

 

Thank you for your time. 

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Anonymous
Not applicable

Double inventory when entering qty and COGS for raw inventory asset. How to adjust?

Great, thanks Alicia!

 

QB Online Plus.

Highlighted
Level 8

Double inventory when entering qty and COGS for raw inventory asset. How to adjust?

My pleasure. 

 

Although QuickBooks Online Plus doesn't handle inventory assemblies as discussed in your original post, the closest feature available is inventory bundling. This groups together multiple products/services that are sold in one single package: https://quickbooks.intuit.com/blog/whats-new/improving-your-efficiency-introducing-quickbooks-bundle....

 

For additional resources on setting up inventory tracking, cost accounting, and COGS, please feel free to check out the following articles: https://community.intuit.com/articles/1145670 and https://community.intuit.com/articles/1145499. 

 

I'm here if you have any further questions. 

 

View solution in original post

Highlighted
Level 15

Double inventory when entering qty and COGS for raw inventory asset. How to adjust?

@Anonymous

When we buy the raw inventory, I put it in the "Raw Inventory" account as an inventory assest.

If you are posting directly to inventory asset, that is wrong, you never post to inventory asset in QB if you are using inventory type items.  You use an item per raw material.

When the production is complete, I enter the QTY and the COGS.

The very first time you crate the inventory item for the finished product you can do this, after that the only way to increase inventory with qty and cost per item, is to enter a purchase.

A bundle (group) item will not work for this at all.

QBO is designed to buy and sell a widget nothing else, so to make something to sell requires a multi-step work around

Create a dummy bank account called in process
Create a dummy vendor called in-house

1. Use inventory adjust, set the adjusting account to the in process bank account and lower the qty of the raw material items you used - that puts the cost of what you used in the dummy bank.

2.  Use write checks on the in process bank account, do not print, select the inhouse vendor, in the item detail part of the check select the finished product item, enter the actual qty made, enter the total amount that is in the in process bank account, save.  That stocked the finished item with qty and cost, now you sell the finished item.

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Level 3

Double inventory when entering qty and COGS for raw inventory asset. How to adjust?

It has been mentioned that QBO does not handle inventory assemblies, but you can get apps like Katana which are more dedicated to manufacturing.

 

Your materials and finished goods are managed automatically alongside production, then invoices/bills are pushed to QBO. Might be a good addition to your arsenal. 

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