What is the “Use auto-updated BOM cost as assembly cost” option?

Hi, Dav.

When you sell products to a customer using an assembly, the system will use the original cost of the items in the Bill of Materials. 

Build Assembly transactions will post to COGS if the item/s in the BOM of the assembly item asset to post on COGS. Also, take note that updating the posting account will not change the previously created transactions. Check with your accountant to know how to create the adjusting entries to fix your books.

The Bill of Materials is a list of all components you need to build a product. You can organize and track what you assemble from inventory parts and then sell. 

I'll be leaving a few related articles about tracking your products and BOM:

• Track the products you manufacture.
• Set up your product’s bill of materials.

If you have any more questions about this, please let me know in the comment below. I'll be more than happy to help!

Hi -

I think I'd like a bit more clarity on this. If anyone else has feedback on this question, that would be very helpful.

Hi there, @Dav,

I'd be glad to provide you with more information about the 'Use auto-updated BOM cost as assembly cost' option in QuickBooks Desktop (QBDT).

If you tick the option to auto-update BOM cost as assembly cost, it'll automatically update the price for inventory items. 

It'll then add up to create a new cost for an assembly item. QuickBooks will be the one to make the calculations.

To see how this selection changes the results, you can choose to run any inventory or item-related reports in your QBDT. 

You can also set your preferences or customize your report to fit your style and business needs.

I'll also add an article you can read if you want to learn how to use inventory assembly items to build and track your finished goods in QBDT: Combine your inventory items to build finished goods.

Should you require further assistance with your inventory in QBDT, feel free to leave a reply. I'm here to help anytime. Have a great day!