How to manage Production/Manufacturing/Build Assembly Process/ Create Deals in Quick Books

How to manage Production in Quick Books?

Handling Manufacturing in Quick Books?

Build Assembly Process in Quick Books?

Create Deals/Packages in Quick Books?

How to Create KIT in Quick Books?

Quick books is financial software but to some extent you can handle production in it using certain ways. But Assembly process can easily be handled in quick books.

To create assembly item/production item go to "Item List/Inventory Center" and create New Item. Choose item type as "Assembly Item" add the ingredients/components for the subject assembly item. Add UOM and quantity to be used for ONE UNIT of assembly item.

Follow Navigation to create Assembly Item

Item List/Inventory Center  --> Create Item -->    Choose Assembly Item

             

Unit of Measurement (UOM) for assembly item can be different from the components. Components UOM and Quantity for one unit of production should be corelated with the unit of purchase. If you buy some item in Kg's and consume in Grams in production then the Quantity should be in converted in Kg's so that stock deducted in same unit else stock will not depict true picture.

Sale price is defined for one unit and depends on the user but cost defined should not be less than the material consumed. Sale price in case of deal/bundle/package sale would normally charged less than the actual sale price of individual components.

System displays cost per unit of production when you add components for assembly item.

Better to have GL Account mapping different for components/Raw material and Assembly/Production/Finished Goods items and Site/Warehouse information thereof to better track the stock position GL entries.

Build Assembly/ Production Process in Quick Books

To build assembly item follow the navigation:

Inventory Center/Home Page --> Inventory Activities  -->  Build Assembly

Select the assembly item from dropdown and select warehouse/Site , this Site will be used to stack the production items.

On selected date, system checks the available stock for each component and suggest you the quantity can be produced from the available stock of raw material. Stock of raw material will be checked from the selected site of raw material.

Add the Quantity to be build in the right corner field and click on the build and close button. The raw material/components consumption quantity will be displayed in Qty needed column. Quantity available also displayed in qty on hand column.

After build assembly process, production units were build and added in the Finished Goods Site. Raw Material components will be consumed as displayed in qty needed column.

Some Tricks and Important Steps to be remembered:

• Raw Material/components UOM for purchase and consumption in Build Assembly should be same.
• Raw material stock Site and Finished Goods Items Site should be different.
• Recipe/Bill of Material (BOM) should be standard.

In case of non Standard BOM/Recipe follow do this:

Create production item/Assembly item as a Service Type Item and Sale that item.

Record consumption of items based on units sold or on periodic stock count of raw materials. 

Thanks!