@Mavors19 wrote:
I run a manufacturing company that buys raw materials and produces finished goods for sale. Each order/sale is done by a job number. How do I account for internal jobs/orders? For example, I bought and used raw materials to manufacture a desk that is being used by my company and is being depreciated as a fixed asset as it's furniture. Is there a better way to account for the desk other than making a manual inventory adjustment and general journal entries?
Never ever use inventory asset in a transaction, an adjustment, or a journal entry. You will mess up the balance sheet inventory valuation vs actual value.
No an adjustment is the only way to do it. And adjustment lowers the inventory items used and move those costs to the adjusting account, which in this scenario would be the fixed asset account.
Additionally, I need to account for labor costs (manufacturing the desk), installation costs, etc. which needs additional journal entries to properly value the desk in fixed assets.
Labor costs are already accounted for in payroll expense, but if you want to then yes that has to be done with a journal entry. Debit fixed asset and credit payroll expense
I'm hoping there is a way to create a job in Quickbooks that will let me track all the job costs related to producing the desk (including raw materials, labor costs, etc.). Is there a way to do this? Or do I have to manually account for everything? Thank you for your help on this matter.
You could use an estimate to track things, but do not copy the estimate to an invoice, when done just make the estimate inactive. But other than that, no there is really no process for this in QB, there are some workarounds, but in truth they add more time and work to the problem. It is just easier to use inventory adjust. QB is accounting, with very very little work flow control.
