We are a coffee business and need inventory help. I want to move (raw/green) coffee to roasted coffee inventory. What is the best process of doing this (using WIP acts)?

Hello there, @tnemeth888.

I'm here to help you handle your inventory in QuickBooks Online (QBO).

The only way to handle this in QBO is to create/enter an inventory quantity adjustment. If you track inventory (or stock) in QuickBooks Online Plus and Advanced, you can manually adjust an item's quantity without recording a purchase or sale, to match what you actually have in stock.

To enter an inventory quantity adjustment:

1. Go to the Plus (+) icon.
2. Select Inventory Qty Adjustment under Other.
3. Enter the Adjustment Date.
4. In the Inventory adjustment account drop-down, select the appropriate account.
5. Select the products in the Product field drop-down.
6. For each item, enter either a new quantity or a change in quantity.
7. In the Memo field, enter the details about the adjustment.
8. Select Save.

When you save the inventory adjustment, QBO automatically records appropriate adjustments to your stock Asset and Cost of Goods Sold (under stock Shrinkage) accounts.

To learn more about inventory quantity adjustment, you can check this article: How to adjust an inventory quantity on hand.

You can also get in touch with our QuickBooks Support if you need further assistance with the process.

Please know that you can always get back to us here in the Community if you have any other inventory concerns. I'm always here to help you!

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@tnemeth888 wrote:
The process of roasting coffee takes only minutes so using a WIP account for 15-20 batches each day seems very inefficient. There is also a loss (weight) factor I need to caputre. One pound of green coffee goes in but only .85/lb. comes out due to water loss from roasting. How should that be handled? Each green coffee has a different raw costs when purchased too and the loss factor varies from each coffee as well.

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One way assuming you use inventory tracking, and you track both green and roasted, is to use a zero expense type transaction, where you enter the Inventory Item for the green and the lbs used as a negative and the total cost (qty x unit cost) also as a negative, and on the next line you enter the Inventory Item for the roasted and the lbs yielded as a positive, and the same total cost, so the net of the transaction is zero.

The cost is tricky. You could run a Inventory valuation report, but that may not be totally accurate if there are lot of material fluctuations. To be totally accurate, you could create a temporary Sales Receipt for the quantity, save it, click More>Transaction Journal to get the cost, write it down or screenshot it, then delete the Sales Receipt.

The 15% loss is captured within the cost of the roasted item because you have the same cost but a lesser quantity

Hi there,  

I see others have answered your question, but have you considered checking out the QuickBooks App Store.  

This way you can easily separate your coffee beans into raw and roasted while generating invoices from a third-party app to push over to QuickBooks.  

Katana can integrate with your QuickBooks account and synchronize your inventory levels so any movements or changes will be updated, in real-time, on both apps.  

Is this feature only available on QB Online +? as I don't have the Inventory Quantity Adj. option under 'Other'.

Hello there, LUKE26.

Yes, you're correct. Adjusting inventory quantity on hand can be used in the QuickBooks Online Plus. If you want to upgrade your book, you can follow these steps anytime when you're ready. Here's how:

1. Go to the Gear icon.
2. Select Account and Settings under Your Company.
3. In the QuickBooks Online section, select Upgrade. 
4. Choose the plan you want to get the said feature under the Other column.
5. Select Upgrade and follow the on-screen instruction to complete the task.

Sample screenshot:

Once done, you can enter an inventory quantity adjustment, edit it if needed, and be able to fix negative inventory issues by using the references below:
 

• Adjusting Inventory Quantity On Hand.
• Make changes to an inventory quantity adjustment you made. 
• Learn how to check your inventory, so always have an accurate count.

Don't hesitate to post again if you have other questions. I'm always around to help. Keep safe!