Level 1

Adjust for product cost with difference from Assembly build and actual raw material used

Hi, I am new to QB. We are using Quickbooks Enterprise. We produce cookies. We have standard raw materials like flour and sugar, chocolate chips. We have assembly builds for cookies with cost from components in the BOM.

The situation is for example, we have the assembly build for 1 cookie with like 0.1 lbs of flour, .01 lbs of sugar and it is costed for that amount of raw materials like $.20. When we actually make the cookie, we use .012 lbs of flour and 0.11 lbs of sugar. So we actually adjust the assembly build when it is done. Actual cost for this cookie is $.021.   


Is there any way we can capture the actual cost of this batch of $.21/ cookie in QB?  This would give us accurate product margin when running our sales report?  We can add the scrap in the BOM but we prefer to account for actual cost each build. 


Right now, I believe that the product cost on sales report is from the BOM/assembly build, not actual assembly build with actual raw materials used. 


Thank you

QuickBooks Team

Reports and accounting

Thanks for joining the Community, ThuanPham.

Since you're currently having to make adjustments to your inventory, you'll want to review your product's bill of materials. It's possible this might've been set up incorrectly. Correcting this record can make everything reflect properly during a sale.

Here's how to find it:
1. In your top menu bar, go to Lists, then choose Item List.
2. Locate the inventory assembly item.

Once you've located it, you can access its edit screen and make any necessary adjustments to your configuration. After your bill of materials is configured properly, you'll be ready to start building.

I'll guide you through our process:
1. Go to Vendors, Inventory Activities, then Build Assemblies.
2. Pick a product you want to build from the Assembly Item drop-down.
3. Review your quantity available and the list of components details.
4. Enter a Quantity to Build. Ticking your Maximum number you can add to this build on this date checkbox lets you know how much of this item you're able to build.
5. If a different assembly item is used to build the product, check Automatically build required subassemblies.
6. Add a Memo if necessary.
7. Select Save and Close.

When it comes to reporting, you'll see single items and build assemblies, along with their costs. Since there's many sales reports with different customization options, I'd recommend contacting our Customer Care Team so they can take a look at your build assembly setup. They'll be able to assist with creating a report that displays the information you're looking for.

I've included a few helpful resources about working with assembly builds that may come in handy moving forward:

Please feel welcome to reach out anytime if there's any additional questions. Have a lovely day!