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Lookout1
Level 1

Purchase of inventory and labour and parts to be added later on

Hello,

 

I am trying to find a way that I can add labour and parts to our purchased inventory.

 

I am using QuickBooks desktop version and I looked through all types of items for what I need but I am not having success.

To record sales by issuing an invoice it must post both sales and cost of sales, and to do so, the inventory must be added on the item list. However, all the item types with cost of sales that I could find are inventory part and inventory assembly part. When I tested those item types by posting bills, from purchase to additional labour and parts, it does not add the value but averages the value. And that averaged value is used as cost of sales when I issue a sales invoice.

 

I need an item that can accumulate the bill amounts. I am wondering if any of you could help me with this problem.

 

Thank you

2 Comments 2
Jen_D
Moderator

Purchase of inventory and labour and parts to be added later on

Thanks for getting in touch with us today regarding your inventory concern, @Lookout1,

 

When you want to add labor or overhead costs to an inventory in QuickBooks, we recommend using the Inventory Assembly Item. This helps incorporate direct and indirect costs of the business into the cost of the product you sell.

 

First, create a non-inventory item for the Direct Labor. The checkbox labeled “This item is used in assemblies or is purchased for a specific customer:job” must be ticked. This way you can assign a wage expense account to it.

 

Once done, assign this to the Assembly item. 
sale 1.PNG

 

To learn more about this item type and how to use it, see the following articles:

 

You can also refer to an accountant for additional help with the way your business wants to track labor on inventory.

 

Let me know if you have any questions or clarifications. I'll be right here to help you anytime. Have a nice weekend!

Lookout1
Level 1

Purchase of inventory and labour and parts to be added later on

Those labour and parts come from entries of payroll and bills respectively.

I want these labour and parts added into the inventory assembly upon payroll and bills are entered.

Is there a way of doing it? or it will be 1. make entry of payroll or bill, 2. go to item list and add those items to the inventory assembly item?

 

Please advise.

 

 

 

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