We would like to maintain a three stage inventory in quick books. Raw Materials, WIP and Finished Goods. We encounter autogenerated Cost of Sales from move of inventory.

We would like to maintain inventory in three stages. Raw materials, Work in Progress and Finished goods. We have setup the Inventory items however, whenever we proceed with transferring the inventory from 1 stage to another, an autogenerated entry is being included and only shows in transactional Journal. Note that we record the transfer of Raw Mats to WIP in Expenses module as this is not available in JE.

For Example.

We would like to move the volume from raw mats to WIP.

We record in Item details..

Raw materials with negative qty and negative amount.

WIP with positive qty and amount.

However when we check in transaction journal two line items were added in the transaction that is a debit to Cost of Sales and a credit to Raw Materials.

as if the move of the inventory was considered as sale however the amount of the line items are arbitrary and does not equal any of our entries.

We would like to eliminate the added lines as we would only like to move the qtys and amounts from one item to another.



1 person found this helpful

You mention journals, it is not clear if you are using a journal entry or not, but, if you are using QB inventory items, you can never use inventory asset in a journal entry, an adjustment, or a purchase - all you do is mess up the books when you do that.

Inventory asset is a summing account, think of the item name as a sub account where qty and value is kept isolated from each other.

Create a dummy bank account called WIP.
create a dummy vendor called in-house

Use inventory adjust, set the adjusting account to WIP, and lower the qty of the items used - that moves raw material value to the dummy bank WIP

In real life, make the finished good, now you know the qty made

In QB, enter a purchase for the finished item from the dummy vendor, and use the WIP bank account to pay for that purchase.  You use the item detail part of the purchase, select the finished good item, enter the qty actually made, and enter the total amount in the WIP dummy bank as the total cost of the item.
that stocks the finished item with qty and cost

Was this answer helpful? Yes No
Rustler - Tips & Tutorials , click to see the site url

No answers have been posted

More Actions

People come to QuickBooks Learn & Support for help and answers—we want to let them know that we're here to listen and share our knowledge. We do that with the style and format of our responses. Here are five guidelines:

  1. Keep it conversational. When answering questions, write like you speak. Imagine you're explaining something to a trusted friend, using simple, everyday language. Avoid jargon and technical terms when possible. When no other word will do, explain technical terms in plain English.
  2. Be clear and state the answer right up front. Ask yourself what specific information the person really needs and then provide it. Stick to the topic and avoid unnecessary details. Break information down into a numbered or bulleted list and highlight the most important details in bold.
  3. Be concise. Aim for no more than two short sentences in a paragraph, and try to keep paragraphs to two lines. A wall of text can look intimidating and many won't read it, so break it up. It's okay to link to other resources for more details, but avoid giving answers that contain little more than a link.
  4. Be a good listener. When people post very general questions, take a second to try to understand what they're really looking for. Then, provide a response that guides them to the best possible outcome.
  5. Be encouraging and positive. Look for ways to eliminate uncertainty by anticipating people's concerns. Make it apparent that we really like helping them achieve positive outcomes.

Select a file to attach:

Qb community
Looking for advice from other business owners?

Visit our QuickBooks Community site.