We are a manufacturer and primarily sell items that are categorized as Inventory Assemblies. Let's say that all our Inventory Assemblies have a COGS account called "COGS A." These Inventory Assemblies have two Inventory Items in their BOM, each with its own COGS account. Let's call these "COGS 1" and "COGS 2." Inventory Assembly (COGS A)Inventory Item 1 (COGS 1)Inventory Item 2 (COGS 2) When we look at a P/L report, we can see the summary of COGS only for COGS A. But we do not see how much of that total is from COGS 1 or COGS 2. I need to be able to create a report that gets one level deeper, and shows the value of COGS 1 and 2 for the Inventory Items, rather than lumping it all together in COGS A. How can I do this?

Question

Report COGS for the BOM items in an Inventory Assembly

Forum|Forum|7 years ago
December 28, 2018
4 replies
32 views

We are a manufacturer and primarily sell items that are categorized as Inventory Assemblies. Let's say that all our Inventory Assemblies have a COGS account called "COGS A." These Inventory Assemblies have two Inventory Items in their BOM, each with its own COGS account. Let's call these "COGS 1" and "COGS 2."

Inventory Assembly (COGS A)
- Inventory Item 1 (COGS 1)
- Inventory Item 2 (COGS 2)

When we look at a P/L report, we can see the summary of COGS only for COGS A. But we do not see how much of that total is from COGS 1 or COGS 2.

I need to be able to create a report that gets one level deeper, and shows the value of COGS 1 and 2 for the Inventory Items, rather than lumping it all together in COGS A.

How can I do this?

QuickBooks Desktop

Rustler

Level 15

It does not work like that

you define the items used to make the assembly item, then you issue a build command
when the assembly item is built, the average costs of the items that make the assemble are added and that total becomes the assembly item average cost. Inventory items used in a build and no longer exist, they are part of the assembly item

Assembly and inventory items are held as assets in QB.

When you sell the assembly item, the average cost of the assembly item is removed from inventory asset and posted to the expense account (COGS) on the assembly item screen.

there is no real reason to have more than one COGS account IMO.

C

Connor1Author

@Rustler, thanks for the quick reply.

I am being asked to show how much we spent on BOM components for the assemblies that have been sold this year.

Instead of presenting a single value that summarizes cost of all the BOM components, I need to show that we spend a total of $X on Component A, $X on Component B, etc.

Is this not possible?

Rustler

Level 15

That would be hard to do even manually

QB keeps average cost, so as you buy replacement inventory, each item average cost may go up or down. That average cost on the day the assembly is built is what is used for each build, and finding that average cost historically is almost impossible.

However if item X is ONLY used in an assembly, then a purchase report on that item could be used, and extract the qty used in the date rage, do the math for total cost item X

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