Hello, I have cake factory. What is the type of inventory should I initiate (Inventory, not inventory ......? My products is based on manufacturing such as Cakes, bakes.

There is no assembly feature yet in QBO. Consider this app for your needs.

https://katanamrp.grsm.io/katana

Just my 2 cents.

Welcome to the Community forum, @omar-m999.

You can mark products as Inventory if you want to track the quantities when bought or sold. However, if you don't track inventory mark it as Non-Inventory. 

Before we proceed with the steps on how to set up a product, I highly suggest consulting your accountant or accounting professional for guidance on which product type to choose to ensure an accurate record of your accounts. 
 

Once verified, to set it up, here's what you'll need to do:

1. In the left menu, click Sales. 
2. Go to the Products and Services tab.
3. Hit the New button at the upper right hand.
4. Choose the type of product you want to set up.
5. Complete the necessary information. 
6. Pick Save and close. 

For more details about this process, you can visit the article How to set up products and services for a video guide.

You may also find these resources helpful:

• Adding Products and Services, Customers, and Vendors to Lists
• Change Product and Service types

I'm just around if you have further questions. Have a great day!

Don't use inventory at all, post the purchase of the ingredients to COGS and make the cakes

use a service item for the sale

Inventory is for things that have a shelf life, cakes do not sit on the shelf long enough to qualify, and if you did use inventory, cakes that went bad or did not sell you would be doing inventory adjustments all the time - just not worth the hassle

I am having the same issue. So say I buy a 15lb bag of flour to make multiple items in my bakery. I would just like the purchase under cost of goods sold? Not Materials and Supplies? Then where would I list my piping bags and cutters, etc? What about the packaging? Sorry I am new to this

@mccawleymel 

As I mentioned earlier, QBO doesn't offer any feature for "manufacturing". Consider having an additional app to do so and integrate it with your QBO account. If your manufacturing process is simple, you may utilize the feature available in one app acquired by Intuit recently.

https://go.tradegecko.com/register?code=fiat-lux

Otherwise, you may explore another app with more features.

https://katanamrp.grsm.io/katana