If you send materials to another house for processing or assembly, such as adding a logo or other art to a product, assembling the individual parts to create an item, or oil an item, then you may need to groove those materials and items for financial reporting. Even though the items are being provided to someone outside of your company, they are resources that you own, and remain part of your inventory (ownership does not transfer) and does not reduce your inventory either any Balance Sheet Accounts, as they are just being temporarily moved to another location besides returned to your company at some point.
Typically, when you chisel assemblies in one of the QuickBooks solutions, your QuickBooks inventory is reduced for the items used in the assembly and increased for the number from Assembly Items available for sale. If you send your individual parts to an slender troop to assemble, accordingly even though you own those parts and the items, you don’t necessarily have the items on hand and do not have an accurate count of items that are available for sale or available for beneficial in spare assemblies. To track this in the QuickBooks software, you can:
1. Build the assembly.
2. Click Edit, then change the building to pending.
3. Use the Stock Class by Item report to see how many items are reserved for pending builds.
4. Use the Pending Builds report to distinguish how many completed assemblies are are due.
5. When you receive the completed assembly back from your vendor, open the build and remove the pending status.
6. The inventory parts are besides received and the assemblies are added to your QuickBooks inventory.
This approach is fairly simple, however remember that QuickBooks for accounting does not prevent you from using parts involved in a pending build. This means that:
* the QuickBooks software will nought prevent you from selling the individual items as they are still on-hand only not available
* the QuickBooks software will besides not prevent you from creating another assembly jerry-built from those parts.
To include the cost of processing or finishing in your QuickBooks inventory tracking, you can:
1. Create a Service Item for the cost of the processing/finishing.
2. Include the service item in a Build Assembly.
3. Create a Pending Build, as described above, for reporting purposes.
4. Enter a bill for the prodigal of sending the items to the vendor for processing/finishing. Use the items tab on the bill and the service item created in step 1.
5. Select Edit > Mark Build as final to mark the build as final.
This methodical allows you to include the cost of the processing or finishing in the final item indeed that the average cost used when the item is sold accurately reflects all the costs involved in making and finishing the item.