Item Assemblies and COGS accounts in QB Desktop Enterprise

Hello there, @EdNewman.

Thank you for your detailed inquiry about handling Item Assemblies and COGS accounts in QuickBooks Desktop Enterprise (QBDTE). From your description, it seems you want more granularity in tracking the COGS associated with specific components of your assembled items. Let me guide you through some steps and options that you can explore to address your requirements.

1. Setup of Item Components: Ensure that each component of your assembly (e.g., Piece of Wood and Paint) is set up in QuickBooks as individual items and that each has its own designated COGS account (as you have done with COGS Raw Materials and COGS Finishing).
2. Assembly Item Setup: When setting up your assembly item (Painted Wood), specify the parts and associate each with its correct COGS account. This setup can pull the respective cost from the components directly when the assembly is built.
3. Reviewing Item Setup: Check the assembly item's total COGS calculation settings within QBDE:
   • Navigate to the Edit Item window for your assembled product.
   • Under the Cost of Goods Sold Account, ensure it references a general COGS account where the individual COGS totals from Raw Materials and Finishing are accumulated. 
4. Profit & Loss Reporting Customization: To get the desired breakdown in your Profit and Loss (P&L) report:
   • You'll need to customize your P&L reports to display more detail.
   • Go to Report, Company & Financial and select Profit & Loss Standard.
   • Use the Customize Report feature to modify the display of COGS accounts, ensuring you expose the specific COGS accounts you want to monitor (Raw Materials and Finishing).
5. Advanced Inventory Features: If you are using the Advanced Inventory module in QBDTE, make sure to leverage its reporting capabilities to further dissect your COGS on a per-component basis.
6. Manufacturing & Wholesale Reports: Utilize specific reports for manufacturing and wholesale, such as the Sales by Item Detail or Inventory Valuation Summary, to analyze the detailed flow of costs within your assembled products. These reports can help you track the allocation of costs to different COGS accounts effectively.
7. Regular Audits: Periodically verify the integrations between your item assemblies and the COGS accounts are working as intended. Mistakes in setup or item reclassification can sometimes lead to COGS discrepancies.
8. You can also consult your accountant to meet your desired needs, or if you find the setup challenging, consider consulting with a Certified QuickBooks ProAdvisor who can offer a tailored setup or a third-party add-on recommendation that fits your specific business model.

Implementing these steps should help you achieve a clearer breakdown of COGS in your reports, allowing for better cost tracking and analysis. If you require any more specific instructions for each step or face any issues during the process, feel free to reach out for further assistance. We're here to help you make the most of QuickBooks for your business needs.

@EdNewman 

Run the Verify/Rebuild Data utility. Did you encounter any error message?

@EdNewman 

No, the P&L can only show the combined COGS for the assembly.  Use your sales reports to get that level of detail. 

Reproduced in a brand new test environment.

Yes, that seems to be the problem.  A HUGE problem for those of us in manufacturing that use a lot of assembelies.