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sbm1
Level 2

How to set up non-inventory items used in production/assemblies

I'm working in Quickbooks Enterprise Manufacturing and Wholesale with advanced inventory.  We were recording the purchase of the raw steel as a manufacturing overhead expense.  We purchase steel in bulk and use it in our manufacturing process.  We do not track the steel as inventory since we cut it up, it would be hard to count, etc.  Recently, I tried making the raw steel a non-inventory part so we can put it on a PO, when I created the non-inventory part I tied to the account for manufacturing overhead expense.  However, when I created the bill it wouldn't post to the manufacturing overhead account unless I also did a receipt for the item.  When I created the receipt it then posted to the overhead account but also posted to the inventory offset account.

Is there a better way to handle non-inventory items used in production?  How should I set up items we use but don't necessarily want to track?

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