Assemblies

Forum|Forum|4 years ago
December 23, 2021
1 reply
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I am having issues when I build Assemblies that have a service or a non inventory item in them. I know having a non inventory items in an assembly is not a best practice, but it happens. Once these are built, they then show up in the COGS report as a credit. This then overstates my income. Any suggestions?

QuickBooks Enterprise Suite

Rustler

Level 15

The way an assembly works with non inventory or service items is that when you build the assembly QB looks at the cost on the item screen and TAKES it out of the expense account listed on the item screen and adds that cost to the assembly. That is why the credit happens in COGS.

COGS is supposed to be the cost of the items sold, not the cost of other services, something else to consider.

Mark RhoaAuthor

Any update to my question below?

Rustler

Level 15

@Mark Rhoa
if you book the item as an expense when you buy it, that is when it reduces net income. If you later include it in an assembly, that expense is removed and net income raises, then when you sell the assembly the total cost of it is posted to COGS, and again net income reduces

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