QuickBooks Inventory – Assembly Items – Part 11

Posted by on May 5, 2011 in Inventory Module | 0 comments

Just a reminder before I begin this segment. You can only accomplish this exercise if you have QuickBooks Premier or Enterprise Solutions. You cannot do this with the Pro version.

In QuickBooks, creating assembly items is a two-step process. Defining an assembly item will be step number one and then you will build it.

I have been asked these questions in relation to the above.

Are assembly item units added to inventory? The anwser is No. Are assembly components deducted from inventory? Once again, No. That’s because the assembly components are not deducted from inventory until you build the assembly.

What can inventory assembly items include? They can include: inventory part, other assembly items, costs associated with building the assembly, and other non-inventory part items service items and other charge items added to the Bill of Materials.

In the Item List, all items included in an inventory assembly must be defined. These can be defined prior to creating the inventory assembly item or as you create the item.

In the example company file that I am using, this company sells pre-assembled exterior door kits. I will need to define the assembly item for those exterior door kits. All of the component items are already defined in the Item List.

The following are the steps to creating an inventory assembly item:

  • Go to your Home page
  • Lists
  • right click on your mouse
  • New.
  • In the Type field choose Inventory Assembly from the drop down box.
  • Tab to the Item Name/Number field where Exterior Door kit is typed in.
  • Tabbing down to the Cost field I will enter 335.82
  • Tab to the COGS Account and accept the default Cost of Goods Sold 
  • stop in the Description box. There I will type in Complete exterior door kit
  • Tab to the Sales Price field. I will calculate a 20% markup which factors out to 402.98 and enter that into the Sales Price field
  • HBC for the Tax Code
  • In the Income Account field choose Construction Income
  • The next Tab will take me to the first column – Item in the Bill of Materials area.
  • From here I will select the following, working across these columns – Item, Description, Type, Cost, Qty, U/M, Total, from my left to right.
  • Selecting Exterior Material:Exterior Frame in the Item field, will fill in the information into all the columns except U/M and Qty.
  • I will enter 1 into the Qty field and leave the U/M blank. I will then return to the Item column and choose the following and enter these numbers into the Qty field.
  • Hardware:Doorknobs Locking – 1
  • Hardware:Brass Hinges – 3
  • Wood Door:Exterior Door – 1
  • Assembly Labour – 1
  • OK will then save this new Inventory Assembly item.

The Bill of Materials should look like this. As you can see I can edit this Bill of Materials at any time.

Unfortunately the revision history is not tracked; and if I need to build a previous version of an assembly, I will need to edit the assembly and reenter the original bill of materials.

Next up – Entering the Build Point.

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