Converting raw materials into finished goods
How do I convert my raw materials into finished goods? I mean, specifically, what is the process? i.e. Click here, select this, do that, etc....
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do_aIuxLer4yUOacwZ5xHE
02/23/12 11:08am PST
Viewed by asker 02/24/12 8:00am PST
Viewed by asker 02/24/12 8:00am PST
5 Replies
Rustler
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Questions answered: 53540
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02/23/12 11:25am PST
Raw goods should be stocked as inventory items
then you create an assembly item that combines two or more inventory items into a final product
Inventory in QB is not a click here presto you are done, it is the easiest part of QB to mess up, and when messed up it is the hardest to fix
The inventory help files and video tutorials are helpful. QuickBooks for Dummies, and Business Accounting for Dummies are great books. There is also a lot of information on my blog, and several "How 2" articles on the basics. QB is an accounting program and has a steep learning curve regardless of what the PR says. And a basic knowledge of accounting is necessary to use QB effectively.
In preferences>Items & Inventory>Company tab check mark that inventory & purchase orders are active, when you create the first inventory item, QB will create the inventory asset and COGS accounts, and then go for it in a test file first.
If I've helped, mark it solved.
My QB tips Blog >> http://onsale-apparel.com/Rust...
Targeted Tutorials - one problem - one solution>> http://community.intuit.com/po...
My QB tips Blog >> http://onsale-apparel.com/Rust...
Targeted Tutorials - one problem - one solution>> http://community.intuit.com/po...
02/23/12 11:50am PST
I just checked and the Inventory & Purchase Orders button is active. It seems that I have inventory, which I rec'd through a PO, but when I attempt to Build the Assembly the quantity in THAT column shows as zero and therefore does not allow me to manufacture the finished item. I have a feeling there is only one thing I am NOT doing. Any suggestions?
P.S..> I am still in the test phase so anything goes.
02/23/12 11:53am PST
P.P.S.> Everything you said is how my system has been set up. All raw materials are set up as Inventory Items. All assemblies utilize them to complete a finished good, etc... It's the functionality of the program that is causing me some confucion. I expected to see my stock quantities at a level that would allow me to then build my assemblies and receive the finished good into inventory as a finished good.
02/23/12 12:27pm PST
You can not build an assembly unless all items are present in correct qualities.
There is no auto build, you must use the build assembly command from the inventory activities drop down arrow to make them
You have to buy inventory items to have them, See this explanation of how to receive inventory items in QB
http://onsale-apparel.com/Rust...
PO's themselves do not receive items, i'm not sure if you mean receive items with bill or not
If you started QB with inventory on hand, let me know and let me know how you set the items up
02/23/12 12:35pm PST
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I figured it out. You must enter PO's through the Mfg & Whsle option, noth through the link on the home page. Then, receive, as you would, the raw material into inventory & when you Build the Assembly it shows as eligible raw materials.
Thanks for all your help. I'm on to another issue now.
