How can I manage inventory of products that I manufacture by tracking materials then sales of finished goods?

nplant · ‎April 10, 2021

I make finished pottery. I use clay, glazes and propane in the manufacturing process.

Maybelle_S · ‎April 10, 2021

I can help you manage inventory products in QuickBooks Online (QBO), @nplant.

Currently, we're unable to do manufacturing in QBO. Though, we can create your finished product inventory item if necessary. Create a cash-type bank account called WIP. Then, create a vendor called in-house.

Use inventory adjusts, then set the adjusting account to the WIP bank account and lower the qty of all items used.
If outside processing costs were also paid, use this WIP bank as the expense (reason) for the payment.
Bring up an expense transaction, select the in-house vendor.
In the item details part, select the finished item, then enter the qty made. Put the total amount that is in the WIP bank account.
On the account details part, select the WIP account and enter that same amount as a negative number.
Save the zero dollar transaction.

The inventory has been relieved, the costs accumulated in the WIP account, and finally, that total cost paid for the finished inventory item and stocked it with qty and item cost. The WIP bank is zero until you need it again.

You can also check our Inventory and projects page in case you want to learn some tips on managing your inventory.

I'm always here to help if ever you have other concerns setting up your inventory.

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Fiat Lux - ASIA · ‎April 10, 2021

QBO doesn't offer any assembly feature. You may need an additional app to do so.

Maybelle_S · ‎April 10, 2021

I can help you manage inventory products in QuickBooks Online (QBO), @nplant.

Currently, we're unable to do manufacturing in QBO. Though, we can create your finished product inventory item if necessary. Create a cash-type bank account called WIP. Then, create a vendor called in-house.

Use inventory adjusts, then set the adjusting account to the WIP bank account and lower the qty of all items used.
If outside processing costs were also paid, use this WIP bank as the expense (reason) for the payment.
Bring up an expense transaction, select the in-house vendor.
In the item details part, select the finished item, then enter the qty made. Put the total amount that is in the WIP bank account.
On the account details part, select the WIP account and enter that same amount as a negative number.
Save the zero dollar transaction.

The inventory has been relieved, the costs accumulated in the WIP account, and finally, that total cost paid for the finished inventory item and stocked it with qty and item cost. The WIP bank is zero until you need it again.

You can also check our Inventory and projects page in case you want to learn some tips on managing your inventory.

I'm always here to help if ever you have other concerns setting up your inventory.

Scrapdogandlittlesas · ‎May 06, 2023

Thanks for the solution. I've been looking for how to add inventory we made ourselves to QuickBooks

Will this work on the 2008 Pro edition?.

Ethel_A · ‎May 06, 2023

Welcome to the Community, @Scrapdogandlittlesas.

To be able to add inventory to your 2008 PRO edition,

Here's how to add inventory items:

From the Inventory menu, choose Build Assemblies.
Note: Don't see the Inventory menu? Go to Vendors and select Inventory Activities. Then Build Assemblies.
Choose the product to build from the Assembly Item drop-down.
Check the quantity available for this product at the top.
Review the quantity on hand, quantity needed, and other info.
Add the Quantity to Build. The numbers in the Qty Needed column get updated depending on the quantity you want to build.
If you use another assembly item to build this product, check Automatically build the required subassemblies. It lets QuickBooks build the assembly that you also use as a component.
You can add a Memo.
Click Save and Close.

You can read this article for the detailed steps: Combine your inventory items to build finished goods.

To track the sales, you can receive inventory.

Here's how to receive inventory with a bill:

Go to Receive Inventory dropdown, and choose Receive Inventory with Bill.
From the Enter Bills window that appears:
1. From the Vendor dropdown, select the vendor.
2. Select Yes to receive a purchase order for the bill.
3. Choose the correct PO, then select OK.
4. Review the information on the Bill.
5. Click Save & Close.
Proceed to Pay Bills.

Here is an article you can read for the detailed steps: Receive inventory.

If the version you are using doesn't have this feature, you can upgrade to the latest release: Upgrade to QuickBooks Enterprise from Desktop Pro/Premier.

For future reference, here is an article you can read and refer to in creating a purchase order if you want to restock: Create purchase orders in QuickBooks Desktop.

Let me know if you have questions about tracking inventory items. I'm always here to help. Have a great day.

Scrapdogandlittlesas · ‎May 06, 2023

Thank you very much for your quick response!

Unfortunately, I don't have Build Assemblies on my version of quickbooks.

I'm looking for some way to turn cost of goods expenses in to inventory stock.

In other words turning various materials into an item ready to sell.

In this case we are making car top rack pads

Thanks again.

Fiat Lux - ASIA · ‎May 06, 2023

@Scrapdogandlittlesas

QBD Pro doesn't provide the assembly feature. Find a one time license for QBD Premier to upgrade your version.

ChristieAnn · ‎May 06, 2023

Hi there, Scrapdogandlittlesas.

Thank you for visiting the QuickBooks Community. I'll share details on how features work in QuickBooks Desktop. I'll also ensure you can manage your inventory and utilize the Build Assemblies option with your items in the program.

Please know that QuickBooks Pro 2008 is a discontinued version. With the QuickBooks Desktop Service Discontinuation Policy, older versions will no longer receive product updates and cannot access online services. Thus, you don't have the Build Assemblies option on your QBDT account.

I suggest upgrading your QuickBooks 2008 to 2011, 2014, 2017, and 2020, and then to the updated 2023 version. You can use our trial versions to help you perform the process. Before that, you'll first have to create a backup of your file of every version. Then, make sure your computer meets the system requirements. This ensures that the software is compatible with your new computer to get the best experience in using QuickBooks.

Once done, you can open this article to view details on how to upgrade your company file so it works in newer versions of QuickBooks Desktop Pro, Premier, or Enterprise: Upgrade your company files after you switch to a new version of QuickBooks Desktop.

Lastly, you may refer to this article to see different features that are included in the QuickBooks Desktop 2023 release and how you can use them to benefit your business: What’s new in QuickBooks Desktop 2023.

Don't hesitate to add comments below if you still have concerns about managing inventory in QBDT. I'm always around to help, Scrapdogandlittlesas.

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How can I manage inventory of products that I manufacture by tracking materials then sales of finished goods?