Most QuickBooks training courses will not include the topic of building inventory assemblies, so, if you need to know this, here’s a brief tutorial.
The concept is simple: Combine several inventory items to make a kit. QuickBooks helps with this process, but it can still be a complex undertaking.
Before you begin, be sure that you’ve created detailed records for all of the items you’ll be combining in assemblies. You can add new ones on the fly, but it’s easier if you’re fully prepared.
We’ll go over the steps required to create a very simple assembly. There are many issues that can arise as you continue to create and sell builds, so if you’re going to use these frequently, you really should take a QuickBooks class dealing with this topic.
Open the Vendors menu and click on Inventory Activities | Build Assemblies to open the dialog box.
The Build Assemblies dialog box
Click the down arrow next to the field labeled ASSEMBLY ITEM and click <Add New>. The New Item dialog box will open with Inventory Assembly highlighted. Select it and enter an Item Name/Number in that field.
You most likely won’t enter anything in the Cost field yet, but you can type a description in the Description field. Be sure that the correct Cost of Goods account is selected in the field under COGS Account.
Jump down to the box under Bill of Materials (BOM). Click in the space under ITEM and click the down arrow to open your list of inventory items. Select the first one in your assembly and fill in the QTY (Quantity) field. Move down to the next line and repeat this process until you’ve entered all of the parts needed.
QuickBooks keeps a running tally of the costs of the items in your assembly (this is your cost, not the sales price) and posts the total below the BOM box.
QuickBooks calculates the total cost of your Bill of Materials and enters it below the data entry box.
The Asset Account should display correctly as is. In the Build Point field, enter the number at which new builds should be ordered. (In this example, when your inventory of this assembly drops to 3, you’ll need to create new ones.) If you know how many builds you have on hand, enter that number in the On Hand box. QuickBooks calculates the value of your existing builds and enters it in the Total Value box.
Now you can go back up and designate a Sales Price, based on the cost plus any markup. Click OK when you’re done. The next screen will ask how many assemblies you want to build. Enter the number at the bottom of the screen and save your record.
This is a very simple example. A private QuickBooks training course may help you deal with the numerous exceptions that might crop up.