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rprimmer
Level 2

How to properly move an inventory part out of inventory

I have an inventory part that is no longer going to be used. How do I remove it properly so the expense gets considered on taxes?

 

This question is assuming that my understanding of inventory parts is correct.  I have art supplies that go into the creation of a piece of art.  In some cases, I expense the supplies out directly and write it off to a category for materials and supplies.  In other cases where it will clearly become a part of a final piece of art at some point (ie: mat board), I create an inventory part and then use an item assembly for the final matted piece.  So may understanding is that the mat board is not truly expensed until it is sold as part of the item assembly sell than becoming part of the cost of goods category.  

 

If that is correct, using the mat board as an example, if I was to no longer use it, how do I write it off as it will not be sold as part of an item assembly and would prefer to just expense it out as supplies and materials or whatever would be most appropriate?

 

Solved
Best answer March 28, 2019

Best Answers
Rustler
Level 15

How to properly move an inventory part out of inventory


@rprimmer wrote:

I have an inventory part that is no longer going to be used. How do I remove it properly so the expense gets considered on taxes?

 

This question is assuming that my understanding of inventory parts is correct.  I have art supplies that go into the creation of a piece of art.  In some cases, I expense the supplies out directly and write it off to a category for materials and supplies.  In other cases where it will clearly become a part of a final piece of art at some point (ie: mat board), I create an inventory part and then use an item assembly for the final matted piece.  So may understanding is that the mat board is not truly expensed until it is sold as part of the item assembly sell than becoming part of the cost of goods category.  

 

If that is correct, using the mat board as an example, if I was to no longer use it, how do I write it off as it will not be sold as part of an item assembly and would prefer to just expense it out as supplies and materials or whatever would be most appropriate?

 


If you have issued a build command for the assembly item, and you have it in stock.  You can use inventory adjust, set the adjusting account to COGS, or COGS - theft/loss/shrinkage and lower the qty.  That expenses it and removes if from the business

View solution in original post

3 Comments
ShiellaGraceA
QuickBooks Team

How to properly move an inventory part out of inventory

Hi rprimmer,

 

The build assembly won't affect the cost until it adds to your sales tax. That's the time the expense will be realized in QuickBooks.

 

You can leave the item as it is in the assembly.

 

You might want to check out this article for more information about inventory assembly items: Create, build, and work with inventory assembly items.

 

Let us know if there's anything else you need. We're here to help.

Rustler
Level 15

How to properly move an inventory part out of inventory


@ShiellaGraceA wrote:

Hi rprimmer,

 

The build assembly won't affect the cost until it adds to your sales tax. That's the time the expense will be realized in QuickBooks.

 

What is that supposed to mean?


 

 

Rustler
Level 15

How to properly move an inventory part out of inventory


@rprimmer wrote:

I have an inventory part that is no longer going to be used. How do I remove it properly so the expense gets considered on taxes?

 

This question is assuming that my understanding of inventory parts is correct.  I have art supplies that go into the creation of a piece of art.  In some cases, I expense the supplies out directly and write it off to a category for materials and supplies.  In other cases where it will clearly become a part of a final piece of art at some point (ie: mat board), I create an inventory part and then use an item assembly for the final matted piece.  So may understanding is that the mat board is not truly expensed until it is sold as part of the item assembly sell than becoming part of the cost of goods category.  

 

If that is correct, using the mat board as an example, if I was to no longer use it, how do I write it off as it will not be sold as part of an item assembly and would prefer to just expense it out as supplies and materials or whatever would be most appropriate?

 


If you have issued a build command for the assembly item, and you have it in stock.  You can use inventory adjust, set the adjusting account to COGS, or COGS - theft/loss/shrinkage and lower the qty.  That expenses it and removes if from the business

View solution in original post

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