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nplant
Level 1

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

I make finished pottery. I use clay, glazes and propane in the manufacturing process.
Solved
Best answer April 10, 2021

Best Answers
Maybelle_S
QuickBooks Team

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

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.

 

  1.  Use inventory adjusts, then set the adjusting account to the WIP bank account and lower the qty of all items used.
  2. If outside processing costs were also paid, use this WIP bank as the expense (reason) for the payment.
  3. Bring up an expense transaction, select the in-house vendor.
  4. 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.
  5. On the account details part, select the WIP account and enter that same amount as a negative number.
  6. 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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2 Comments 2
Fiat Lux - ASIA
Level 15

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

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

Maybelle_S
QuickBooks Team

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

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.

 

  1.  Use inventory adjusts, then set the adjusting account to the WIP bank account and lower the qty of all items used.
  2. If outside processing costs were also paid, use this WIP bank as the expense (reason) for the payment.
  3. Bring up an expense transaction, select the in-house vendor.
  4. 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.
  5. On the account details part, select the WIP account and enter that same amount as a negative number.
  6. 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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