QuickBooks Inventory Assemblies - Tips & Instructions
QuickBooks inventory assemblies is a pretty straightforward procedure, but many people don't realize that it actually requires two steps. Here are some tips & instructions for taking care of this important process.
Step One of the QuickBooks Inventory Assemblies Procedure - Create the Correct Item
A. Have items in your Item List. It seems a little silly to state the obvious, but we may as well begin at the beginning! Since you cannot build an inventory assembly without items in the Item List, if you are brand new to QuickBooks Premier take time now to enter some before proceeding. You can only use these types in an Inventory Assembly:
- inventory part
- inventory assembly (as a subassembly)
- non-inventory part
- other charge
B. In the Item List, create an "Inventory Assembly" item. This is the new item that will be created from the individual items you select. Here's how:
From the Lists menu, select Item. Press Control-N. This opens the New Item window. Fill in all of the information. Notice near the bottom of this window is a area that says, "Bill of Materials." Select the items needed to create this new product.
All of the information in this screen is important, but here are some suggestions regarding certain fields:
- Enter a quantity for each item you are adding. For example, if the assembly requires two of a certain item, enter two in the "Qty" field.
- In the "COGS Account" area, QB automatically selects Cost of Goods Sold. In most cases this is correct and should not be changed. If for some reason you wish to change it please consult with your accountant or tax preparation expert before doing so.
- Enter a sales price. Be certain that a correct markup is taken here, as this will directly effect your gross margin.
- In the "Asset Account" area, QB automatically selects the Inventory Asset account. In most cases this is correct and should not be changed. Again, if you wish to change it please consult with your accountant or tax preparation expert before doing so.
Click Ok if you are finished, or Next if you want to create another Inventory Assembly Item.
Step Two of the QuickBooks Inventory Assemblies Procedure - Build the Assembly
C. Begin to build the inventory assembly by following this path:
Vendors > Inventory Activities > Build Assemblies
Click the Inventory Assembly drop-down box, and select the item you just created above in #B. In the area called, "Components Needed to Build," QB enters the items added when the Inventory Assembly item was created above.
Also notice the Qty on Hand - this shows how many of each of these should be in your physical inventory (the inventory you should actually have on hand).
D. Three buttons are located in the lower-right corner. A Quantity to Build box is located above these. Enter the number of assemblies you want QB to construct. Click Build & New, or Build & Close, as needed.
the software takes the individual items out of your item list, and places them into the Inventory Assembly item you created above in #B. These individual items are no longer found as individuals in the item list. Their counts have been reduced by the amount needed to build the assembly, and the assembly count has been raised by the number entered in the Quantity to Build box above.
Other Related Tasks for QuickBooks Inventory Assemblies
These additional tasks are also available:
- Disassembling inventory assemblies
- Building inventory assemblies at a future date
- Editing inventory assemblies
- Printing a components list for the assembly (aka Bill of Materials)
At Which Point are the Individual Items Removed from the Item List?
The individual items are not removed in when the assembly item was created in steps A & B. They were removed in step D, when the assembly item was actually built.
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