Rustler
Level 15

Other Questions

@ID362807 

 

QBO is a simple accounting program and is designed to buy and sell a widget, it is not designed to be used in manufacturing.  To use it to manufacture something requires a work around

 

create your finished product inventory item if necessary

create a cash type bank account called WIP

create vendor called inhouse

 

in real life make your finished product, noting how many of what items were used, and how many of the finished item was made

 

In QB

1. use inventory adjust, set the adjusting account to the WIP bank account and lower the qty of all items used

2. if outside processing costs were also paid, use this WIP bank as the expense (reason) for the payment

3. Bring up an expense transaction, select the inhouse vendor

3a.  in the item details part, select the finished item, enter the qty actually made, and enter the total amount that is in the WIP bank account

3b. in the account details part, select the WIP account and enter that same amount as a negative number

3c. save the zero dollar transaction

 

Inventory has been relieved, the costs accumulated in the WIP account, and finally that total cost paid for the finished inventory item and stocked it with qty and cost, and the WIP bank is zero until you need it again