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Aaron Woolley

Aaron Woolley

Inventory: Tracking Finished Goods

Slide Duration:

Table of Contents

I. Introduction
Bookkeeping Basics

10m 25s

Intro
0:00
The Accounting Equation
0:10
Assets
1:15
Liability
2:19
Equity
3:11
Debit vs. Credit
4:10
T Account
4:40
How Your Bank Treats Your Account
5:02
Your Books
6:08
Chart of Accounts
7:15
Balance Sheet Accounts: Assets
7:25
Balance Sheet Accounts: Liability
7:40
Balance Sheet Accounts: Equity
8:22
Income Statement Accounts
9:03
Income
9:06
Expenses
9:26
Net Income
9:48
Getting Started

16m 34s

Intro
0:00
Using Forms
0:13
How to Edit Customer Form
1:06
How to Edit Vendor Form
1:37
Using Lists
2:34
Customer Lists
2:39
Vendor Lists
2:47
Employees Lists
2:59
Using Registers
3:16
Check Register
3:22
Chart of Accounts
3:40
How to Use Register
6:27
Getting Around QuickBooks
7:54
Navigating Through the Home Screen
8:08
Managing Employees
9:59
Managing Open Windows
11:23
The Menu Bar
12:02
The Icon Bar
12:28
QuickBooks Centers
12:50
Customers, Vendors, Employees Center
12:53
Banking Center
13:06
Report Center
13:38
Lead Center
13:46
Search Information
14:17
How to Search for Information on a Customer
14:28
The Homepage & Workflow
15:12
The Chart of Accounts: Assets, Liabilities, Equity
15:37
How to Access Chart of Accounts
15:45
Setting Up QuickBooks

20m 51s

Intro
0:00
The Express Start
0:23
Create New Company
0:49
Entering Company Information
0:55
Enter Business Contact
2:24
Preferences
4:16
Adding Contacts
4:22
Adding Products and Services
4:28
Adding Bank Accounts
5:26
Review the Chart of Accounts and Customize
6:10
Check Chart of Accounts Set Up
6:48
How to Add To Chart of Accounts
7:20
Entering Bank Accounts and Opening Balances
8:00
Edit New Bank Accounts
8:28
Add New Bank Accounts
8:52
How To Open Balance
9:58
Adding Customers
10:27
How to Add New Customers
11:05
Adding a Job
12:33
Add New Job For Customer
12:50
Adding Vendors
15:01
Access Vendor Center
15:17
Add New Vendor
15:33
Adding Additional Accounts
16:33
Adding New Accounts in Chart of Accounts
16:53
Adding Items (Products & Services)
18:06
Add New Item to Sell
18:45
II. Working With Lists
Working With Lists, Part 1

31m 24s

Intro
0:00
Editing The Chart of Accounts
1:08
Edit Account
5:10
Adding Subaccounts
6:17
New Subaccount
7:50
Working with Customers & Job Lists
11:32
Add new customer
13:25
Providing Additional Customer Information
17:50
Providing Customer Payment Information
22:10
Working with the Vendor Center
24:08
Add new vendor
25:50
Providing Additional Vendor Information
28:28
Working With Lists, Part 2

46m 1s

Intro
0:00
Working with the Employee Center
0:24
Add new employee
2:01
Add contact information
4:02
Additional employee information
5:31
Employment information
6:26
Adding Custom Fields for Customers, Vendors, Employee List
7:28
How Many Lists You Can Add And For Who
8:46
How to Add Customer List
9:35
Define Fields
10:37
Adding Custom Fields for Items
13:26
Open Item List and Edit
14:15
Define Fields/ Setup Custom Fields For Items
15:54
Managing Lists
17:01
Ways to Sort Lists
17:14
Add Items to Chart of Accounts
17:32
Add Owner's Equity, Draw, and Contribution under Equity Account
17:59
Sorting Lists Manually
19:31
Making Sub Accounts
20:35
Sorting Lists
23:26
Sorting Lists in Ascending or Descending Order
23:54
Sort by Name, Balance, etc., Ascending or Descending
24:26
Merging List Items
26:08
Merging Vendor Example
26:53
Renaming List Items
28:55
Renaming Item Example: Checking Account
29:13
Deleting List Items
29:56
Deleting Customer Example
31:19
Viewing Inactive and Active Customers
32:32
Printing a List
33:26
Printing Customer List
33:58
Printing for Just One Customer
34:40
Print Particular Info for One Customer
35:08
Adding or Editing Multiple Items at One Time
37:04
Example: Changing a Zip code
37:39
Working with the Lead Center
41:43
Finding the Lead Center
42:09
Add New Leads
43:05
Add Multiple Contacts to Lead Center
44:34
Convert a Lead to a Customer
45:16
III. Accounts
Working With Bank Accounts

29m 11s

Intro
0:00
Writing a QuickBooks Check
0:30
Amount field
3:59
Other fields
5:27
Print check
7:00
Using Bank Account Register
7:40
Entering a Handwritten Check
9:45
Transferring Money Between Accounts
16:33
Funds Transfer Option
17:24
Transfer with Check Register
19:18
Marking Cleared Transactions
20:57
Bank Statement
23:31
Reconciliation Summary
26:11
Viewing Cleared Checks in the Register
27:05
Searching for Specific Check Amount
27:40
Using Other Accounts in QuickBooks

13m 25s

Intro
0:00
Other Account Types in QuickBooks
0:36
Tracking Credit Card Transactions - Entering Credit Card Charges
0:58
Reconciling Credit Card Statement
3:52
Reconcile Credit Card
5:00
Marking Cleared Transactions
5:57
Paying a Credit Card Bill
8:11
Entering Bills
8:34
Writing a Check
10:15
Using Other Accounts: Assets & Liabilities

30m 16s

Intro
0:00
Working with Asset Accounts: Setting up an Asset Account
1:24
Add New Account
2:30
Enter Opening Balance
4:34
Setup Asset Account to Track Depreciation
7:33
Add Subaccounts: Cost & Depreciation
10:32
Enter in Depreciation of Transactions
13:01
Working with Liability Accounts: Tracking a Loan / Long Term Liability
15:39
Add Long Term Liability / Loan Account
17:09
Tracking Fixed Assets
20:29
Add New Asset
21:36
Recording a Payment on a Loan
24:23
Understanding Equity Accounts
27:03
Add New Equity Account
29:20
IV. Sales Information
Entering Sales Information, Part 1

24m 23s

Intro
0:00
Using Sales Forms - Various Types of Sales Forms
0:07
Invoice Overview
0:56
Sales Receipt Overview
3:09
Generate Statement
4:38
Choosing a Template for Sales Forms
6:00
Filling in Customer Information
7:54
Create an Invoice
8:04
Invoice in Accounts Receivable Ledger
10:28
Repeating a Sale - Memorized Transactions
11:36
Memorize Invoice
12:52
Memorized Transaction List
14:01
Batch Invoices
14:55
Create Batch Invoice
15:21
Entering a New Service Item
20:13
Add new service
21:25
Entering Sales Information, Part 2

12m 33s

Intro
0:00
Using Multiple Price Levels - Create New Price Level
0:07
Create Price Level List
1:49
Associating Price Level with Customers
4:27
Edit Customer
5:53
Using Price Levels on Sales Forms
7:09
Choose Rate
8:56
Assigning Price Levels To Individual Line Items
10:38
Entering Sales Information, Part 3

22m 33s

Intro
0:00
Managing Overdue Customer Payments - Using the Collections Center
0:21
Collections Center
0:39
Create Invoice Letters
2:00
Prepare an Invoice Letter
3:09
Generating Reminder Statements
7:32
Assess Finance Charges
9:14
Preview Statement
9:42
Processing Sales Orders - Invoices Against Sales Orders
10:28
Open Sales Orders by Item
12:04
Create an Invoice
13:24
Tracking Back Orders
14:36
Create Invoice from Sales Order
16:37
Receiving Items
18:21
Check Item List / Inventory
19:22
Create Sales Order
19:58
V. Payments & Deposits
Receiving Payments & Making Deposits, Part 1

12m 40s

Intro
0:00
Recording Customer Payments - Record a Payment in Full for a Single Job
0:20
Receive Payments
0:40
Undeposited Funds Account
2:25
Entering a Partial Payment
3:42
Assign Payment
6:36
Applying One Payment to Multiple Jobs
8:10
Entering Overpayments
9:44
Leave or Refund Amount
10:51
Issue a Refund
11:28
Receiving Payments & Making Deposits, Part 2

15m 8s

Intro
0:00
Handling Down Payments or Pre-payments
0:07
Apply Credits
4:30
Making Deposits - Selecting Payments to Deposit
5:58
Payments to Deposit
6:26
Make Deposit
8:02
How QuickBooks Handles the Deposit
10:16
Entering & Paying Bills

22m 1s

Intro
0:00
Handling Bills in QuickBooks
0:23
Using QuickBooks for Accounts Payable
2:24
How to Bring up the Accounts Payable Register
3:04
Entering Bills
4:03
Enter New Bill
4:30
Add Vendor to List
6:29
See the Balance
8:48
Paying Bills
11:17
Turning on Reminder List
11:49
How to Pay a Bill
13:34
How to Print the Checks
16:21
How QuickBooks Records Your Bill Payment
17:08
How to See Your Checking Account / Bill Payment Check
18:38
VI. Analyzing Financial Data
Analyzing Financial Data, Part 1

11m 42s

Intro
0:00
Understanding Your Business Using Reports
0:11
When to Use a Quick Report
2:41
Creating Quick Reports
3:05
How to Look at Details for Quick Reports
4:05
Zoom In on a Quick Report
5:19
What You See When You Zoom In On An Item
6:06
Customizing Quick Reports
6:53
How to Customize A Report
7:28
How to Add Transaction Number to QuickReport
7:57
How to Move Columns Around
8:14
How to Change Header
9:42
Analyzing Financial Data: Create & Customize Preset Reports

29m 26s

Intro
0:00
Creating and Customizing Preset Reports
0:35
Company & Financial
0:54
Customers & Receivables
1:04
Sales
1:53
Jobs, Time & Mileage
1:55
Vendors & Payables
2:35
Purchases
2:45
Inventory
3:06
Employees & Payroll
3:22
Banking, Accountant & Taxes, Budgets & Forecasts
3:43
Lists
3:49
Industry Specifics
3:54
Using the Report Center
4:37
Categories of Standard Reports Available
5:15
Creating a Balance Sheet Comparison Report
7:29
Filtering Reports
9:50
Customize Report
10:20
Saving Reports in PDF Format
13:58
Creating and Customizing a Sales Report
15:24
How to Change the Date to a Custom Date
16:30
Using Quickzoom in a Preset Report
17:49
What is Quickzoom?
17:55
How to Zoom
18:19
Widening and Narrowing Reports
19:59
Saving Report Settings and Creating Memorized Report Groups
20:50
What are Memorized Reports and What Are They Used For
21:04
Memorized Reports List
21:43
How to Create A New Memorized Report
22:19
Memorizing Preset Reports
22:48
Saving Report
24:14
Adding Reports to Memorized Report Groups
24:42
Adding Reports
26:49
How to Display Reports
28:50
Analyzing Financial Data: Printing, Exporting, and Quickinsight Graphs

30m 12s

Intro
0:00
Printing Reports
0:17
Preview Before Printing
2:34
Processing Reports in Groups
3:38
How to Run Reports in Groups
4:51
How to Display All Reports in a Group
6:09
Exporting Reports to Microsoft Excel
7:15
Purpose of Why People Export To Excel
7:48
Sending the Report to Excel
9:13
Formatting Options
12:08
Changing Filters
14:30
Choosing and Changing Different Filters
16:30
Creating Quickinsight Graphs
17:51
Creating an Income and Expense Graph
18:41
How to Create the Graph
19:46
How to Read the Pie Chart
20:05
Customizing Graph Data
24:16
Choosing by Customer Instead of Account
24:50
Using Quickzoom with Graphs
25:10
How to Zoom on a Particular Customer
26:15
Customizing How Graphs Display
28:31
How to Change Graph Into 2D
29:03
VII. Inventory
Setting Up Inventory

23m 51s

Intro
0:00
Turn On Inventory Feature
0:43
Enter Products Into Inventory
1:44
Entering Product Through Vendor Menu
2:07
Add New Item
2:43
Reordering Item and Reminders
6:00
Ordering Products/ Creating P.O's
7:02
How to Create Purchase Orders
8:05
Look Up Outstanding Orders
10:46
Getting a Report of Purchase Orders
11:34
Choose and Open Quick Reports
12:48
Receiving Inventory
13:47
Receiving Inventory Without an Invoice
14:13
Reviewing the Inventory List
15:38
Entering a Bill for Inventory
15:59
Entering Bill for Received Items
16:45
Manually Adjusting Inventory
18:31
How to Get to the Adjust Quantity On Hand Page
19:16
Add New Account
20:23
Check and Review Inventory List
22:59
Inventory: Tracking Finished Goods

22m 10s

Intro
0:00
Use Group Items or Create Inventory Assets?
1:57
Tracking Items Through Group Items
3:02
Using Inventory Assembly
3:42
What is a Bill Point?
4:58
Setting a Default Markup
6:16
Adding a Basic Mark Up
6:31
Add a Labor Item to Use in Assemblies
7:26
How to Add New Labor Item in Assembly
7:53
Creating Inventory Assembly Items
9:54
Adding New Assembly Item to Inventory
10:40
Adding in Assembly Labor
14:22
Editing the List
14:53
Building Finished Goods
16:05
Changing Sales Price
16:48
How to Build Assemblies
17:51
Understanding the Effects of Building Items
19:24
Run Report to Generate Item List
20:24
Inventory: Units of Measure

13m 14s

Intro
0:00
Setup Single Unit of Measure
2:12
How to Edit Unit of Measure on an Item
3:18
Setup Multiple Units of Measure
5:32
Setting up Preferences to Multiple Units of Measure Per Item
6:13
How to Edit Multiple Units of Measure on an Item
6:49
Assign Units of Measure to Items
8:44
Edit Items to Assign UN Set
9:01
Assign Measure Sets
9:42
Open Purchase Order and Select Unit of Measure
10:41
Use Units of Measure on Sales Forms
12:47
VIII. Tax
Tracking and Paying Sales Tax

21m 41s

Intro
0:00
Setup Tax Rates & Agencies
0:44
Setting Up Sales Tax Code List
0:55
How to Set up Tax Rate for Example City
3:26
Add New Item to Item List
3:46
Checking and Editing Item Through Vendor Center
7:20
Grouping Single Taxes
7:50
Why Taxes are Grouped
8:05
Creating New Sales Tax Group
8:59
Choose Tax Item to Add Into Group
9:51
Indicate Who and What Gets Taxed
10:45
Add New Customer To Assign Tax To
11:06
Invoicing Customer
13:03
Apply Tax to Sales
14:30
Editing Item and Choosing Tax Rate
14:53
Create a Sales Tax Liability Report
15:26
File Sales Tax Return/ Creating Liability Report
15:40
Use the Sales Tax Register
18:14
How to Read the Sales Tax Payable
18:35
Paying Your Tax Agencies
19:34
How to Pay Sales Tax
19:52
Choosing Which Items to Pay For
20:21
Print Checks
21:06
IX. Payroll & Invoice
Payroll Basics

17m 56s

Intro
0:00
Setup Payroll Items
0:54
Add to Subscription
1:07
Add Employee
2:26
Creating and Adding Personal Information
3:41
Adding Payroll/Compensation Information
4:43
Setup Taxes
6:27
Make a Payroll
8:36
Start a Scheduled Payroll
9:49
How to Edit Each Employee's Payroll Summary
10:30
Custom Items on Payroll
12:12
Print Payroll Checks
14:36
Print Later
14:39
Pay Payroll Liabilities
14:49
Forward Taxes to Authorities
15:06
Generate/Sending Check
15:46
IX. Payroll, & Invoice
Estimating & Progress Invoicing

14m 29s

Intro
0:00
Turning On Estimates and Progress Invoicing
0:21
Create a Job
1:30
Adding new job
2:22
Create an Estimate
5:14
Printing Estimate
7:56
Create Progress Billing
8:22
Invoice Estimate
8:32
Run Report: Job Progress Invoice vs. Estimate
10:46
Update Progress on Job Status
12:25
Edit Job Status
12:34
Make an Estimate Inactive
13:20
X. Time Tracking
Time Tracking

17m 16s

Intro
0:00
Turn on Time Tracking
0:23
Entering Time Data
1:27
How to Enter Time for Labor Per Job
2:45
How to Start Time Ticker While On Job
4:22
Recording Employee Time on a Weekly Timesheet
5:40
Use Weekly Timesheet
6:17
Enter Reimbursement Costs
7:59
Write the Check
8:38
Invoice a Customer for Time and Costs
10:19
Create an Invoice
10:33
Invoice for Time for Labor
11:54
Reports: Time by Job Reports
13:13
Paying Non Employees for Time Worked
14:27
Using Time Sheet & Jobs
16:37
XI. Customizing Forms & Writing QuickBooks Letters
Customizing Forms and Writing QuickBooks Letters

13m 43s

Intro
0:00
Customizing Invoices
0:10
Create Invoice
0:34
Customize Invoice
1:10
Downloading New Layouts
2:50
Create New Design
3:10
Designing Custom Layouts for Forms
5:11
Layout Designer
7:08
Using QuickBooks Letters
9:56
Create an Invoice Letter
10:22
Collection Center
11:49
Email From Collection Center
12:31
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Inventory: Tracking Finished Goods

Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.

  • Intro 0:00
  • Use Group Items or Create Inventory Assets? 1:57
    • Tracking Items Through Group Items
    • Using Inventory Assembly
    • What is a Bill Point?
  • Setting a Default Markup 6:16
    • Adding a Basic Mark Up
  • Add a Labor Item to Use in Assemblies 7:26
    • How to Add New Labor Item in Assembly
  • Creating Inventory Assembly Items 9:54
    • Adding New Assembly Item to Inventory
    • Adding in Assembly Labor
    • Editing the List
  • Building Finished Goods 16:05
    • Changing Sales Price
    • How to Build Assemblies
    • Understanding the Effects of Building Items
    • Run Report to Generate Item List

Transcription: Inventory: Tracking Finished Goods

Welcome back to Educator.com.0000

This is QuickBooks lesson: inventory, tracking finished goods.0002

Now QuickBooks, in the versions of Premier, the Accountant and Enterprise versions of QuickBooks,0008

they allow you to track the building and sale of finished goods using assembly items.0015

This is only available again in the Premier, the Accountant and Enterprise versions of QuickBooks.0022

If you are using Pro or lower, it is not going to give you this feature, but if you are, continue on with this lesson. This is very valuable.0030

In QuickBooks, the Inventory Assembly items actually allow you to create an item that it contains0039

assembled material units, finished goods that you buy or produce and track its inventory and resell.0046

So, you can keep track of how many items that remain in stock after a sale, and how many items you have on order.0053

Your cost of goods sold and the value of your inventory, you can keep track of.0062

Note that the Inventory Assembly items in QuickBooks are appropriate for indicating light assembly items on a Sales Forms and in Reports.0067

But QuickBooks does not track inventory throughout a manufacturing process. That is a little more detailed.0077

You may want to look at a different type or a heavier type of system to track your manufacturing process.0084

But, for smaller type of items, you can certainly utilize it, that contains smaller amounts of assembly items.0092

And you must have QuickBooks again, the Accountant, Premier or Enterprise versions to utilize the assembly and building of assembly items there.0101

Now, the question really is whether we use Group items or Inventory assets-0113

what is a group item, and what is an inventory asset to creating those.0121

So, Group items are actually useful for quickly entering a group of individual items that you have already0126

set up as a single item in your list that you typically sell as a package for instances, lumber.0133

You might have a construction company that remodels houses.0141

You could sell and set up a group item that lists the significant components of a remodelling job for instance, labor lumber, mark-up, etc.0146

So, there might be a group of items that they just put in as a remodelling job.0157

Sales reports for the company would then actually show income broken down by0164

each of those components instead of the single lump sum for all the remodelling jobs.0169

So, it is, kind of, a quick way to lump in a job and lump in some of those items that are typically sold.0173

If you need to track a lot of detail about your items but also want to give your customer simple and uncluttered invoices,0181

you can group and use Group items to do both, so you can show them that.0187

When you invoice them, it will just give a group item that includes the lumber and the labor and the materials, part of that single item on an invoice.0193

Group items also give you a way to enter a great amount of line item detail quickly.0204

So, you can actually pull in a group item and already pull in all the components that you need that you typically would bill to the customer for that.0210

Now, using Inventory Assemblies is a little bit different.0220

Inventory Assemblies would be an assembled unit just added to quantity on hand and its components.0223

So, the Inventory items that you used to bill the assembly would then, be reduced and then, the assembled item would be increased.0231

They are automatically deducted from the quantity on hand.0241

So, by using Assembly Items, you also always know how many assembled and component items you actually have on stock.0244

So, you have all the assembled little pieces, and every time you build a piece that reduces that quantity and then,0252

increases the quantity of the assembled finished product you have ready to sell, and it increases that quantity.0258

So, it keeps those things in balance and the quantity in hand that you have.0264

You can actually specify a price for assemblies that are different from the sum of the components.0268

So, you actually have the sum of the components, the products, the cost, which actually can build in a slightly higher cost in that, as well.0274

We can easily access the date items were assembled and quantity and cost of assembled items in detailed bill of materials.0283

You can also set up a Build point, so QuickBooks will remind you when you have finished products or down in inventory.0292

It will remind you "Hey, you only have ten items left. You might want to build and create and increase your inventory in that and build more.0300

So, that really helps you maintain your inventory at all levels, your components,0309

the items that are on inventory that make up the final finished product that can be sold.0315

For instance, we have had a client that sews dresses for little girls, and they do that.0323

So, there is components with that. There is the labor involved in the sewing.0332

And there is the materials and the ribbon and the various components that make up the dress.0336

So, they buy all that in inventory in bulk, but whenever they assemble the dresses then, they can utilize the Assign the labor,0342

Assign the materials and the lacing and ribbons and whatever else that comprises that final product that is ready for sale.0350

So, that client can utilize the QuickBooks Assembly and Inventory Tracking very healthily.0360

And it helps our business very well to be able to make sure things are cost-effective for them.0366

So, the thing that we want to do is actually set up a default mark-up.0372

First thing we can do is adding a basic mark-up to our inventory costs, and we can put in a basic mark-up in QuickBooks for all products.0377

So, in order to do that, we need to go to our Preferences. Remember where Preferences is found.0390

We go to do Edit menu and pull down and click on the Preference window. We can find our Time and Expenses.0395

We have to scroll down and get to our Time and Expenses area.0406

And on Company Preference tab, we can make sure that we can choose a mark-up percentage. At this point in time, we will say at 20% - OK - mark-up.0410

So, in the field, the Default mark-up percentage, we will put in 20%, and then, we hit tab.0424

We can, then, go ahead and click OK to close our Preference down, now that we have added the 20% mark-up on all of our items.0430

It will go ahead and affect the percentage of the next exercise that we will utilize.0439

Now, we are going to talk about adding labor item to use in Assemblies.0446

So, when we assemble our products or finished goods, there is hours of labor that we will assign to building that product,0453

so that we can have a better cost and job costing of our products there.0464

We are going to show you how to add a labor item to use in Assemblies.0470

So, of course, what we want to do is get to our Item list that we sell.0475

Where is our Item list found? Well, under the Lists menu, it is at the second from the top- Item list.0480

We will click on that.0485

Now, to add a new item, we normally can do Ctrl-N, or from the Item list, we can click on the item and menu button and choose New.0487

Of course, this is going to be a service since it is going to be labor hours, so we will choose Service.0500

And in the Name, we are going to say Assembly labor, so that is the name of our service.0507

We are going to click on the box that says his service is used in assemblies, and it is performed by a sub-contractor or a partner.0516

I will click on that, and in the Description on the Purchased Transactions, we are going to type in Direct labor. We will press tab.0526

Of course, it automatically fills in the sales information from the purchase information. The cost, we are going to say is $20, and we will hit tab.0538

It is going to gives us an expense account.0548

At this point, we will just say it is a pay roll expense and hit tab, and then, there is a vendor.0550

And we are going to not use the vendor, but we will put in the tax code, and this is a non-taxable item.0558

We are not going to tax our labor, of course.0567

Now, we are going to choose an income. It is income account, and we are going to say it is construction income but it is actually labored.0571

So whenever we bill for this, we will, then, attribute it to construction labor.0578

Now, we have our assembly labor all set up. We will click OK, and that item is ready to go.0585

Now, we are going to start building and assemble some items for resell. We are going to set that up.0594

So, we are going to create an Inventory Assembly item, and it is actually a two-part process.0601

The first process is defining an assembly item, and then, we will build that item.0608

Assembly item units are not added to inventory, and assembly components are not deducted from inventory until you actually build the item.0617

So, we are going to go ahead and now show you how to create an Inventory Assembly item.0626

Under the Item list, in the Item menu button, we are going to select New, so we are going to add an assembly item to build.0632

So, we are going to say New. We are going to choose under the Type field, it says an Inventory Assembly.0643

Now, the name of this assembly is going to be Exterior Door Kit, so we are going to build exterior doors.0653

We are going to have several items that come along with the kit.0662

In the Type, we are going to type in under the Sales Cost down below in the middle of the screen, we are going to type in $199.0673

That is the cost of our item, and then, will hit tab twice, and we are going to the Description of this assembly item.0680

We are going to say Complete Exterior Door Kit, so it is a Complete Exterior Door Kit.0691

QuickBooks will go ahead...and when we will hit tab on that, QuickBooks will allow us to set any price for assembled items.0705

The price is independent of the sales price of the components, and we can change this amount anytime we want.0711

In addition to the tax code, the tax code for assembled items and the component parts can be different, as well.0718

So, we can actually put in different codes.0727

In the Income Account field here for this exercise, we are going to type in Construction Income, but it is going to be for materials.0731

In the Building materials, now, this is where we begin putting in all the different components that make up this kit.0742

The very first item that we are going to choose is the Frames, and it is the Exterior Frames we are going to choose, OK?0752

So, we have an Exterior Frame.0763

In the Quantity field, we are just going to say one then, hit tab, and we go to the next field.0771

We are going to, then, choose our next item that we are putting in. It is going to be Doorknobs.0777

So, we are going to say it is Hardware, and it is Doorknobs Locking Exterior.0781

So, we will say Doorknobs Exterior. Let's see here, well, Doorknobs, it is Hardware.0789

It should be Doorknobs, so we will use the Doorknobs here. The Lock Doorknobs, I guess, is what we will choose, the bottom one.0800

And this, we are going to choose tab, and we will say there is one of those, OK?0810

And then, under the drop down list, we are going to type in Hardware again, and we are going to choose Brass Hinges.0819

And we will choose one of those. Actually, for the Hinges, we will choose three because we need just more than one.0828

And then, we are going to go into our Item list, and we are going to type in our Wood Door, and it is going to be an Exterior Door.0838

We will hit tab, and we want one of those, and then, we have to have one more time because we are going to add our assembly labor.0851

So, we will type in Assembly Labor and press tab, and we will put in one of those.0863

So, it is going to cost us $20 to put all that together for our labor, so we charge labor for that item.0875

So, now, our new assembly item, Exterior Door Kit is set up with all the various components as well as labor.0880

And we can edit the Building Materials for Assembly Items anytime we want. We can edit any of this.0889

The assembly revision of history is not tracked, though, so we do change it.0898

There is no history on what the costs were before and what it was before.0902

So, if you need to build the previous version of it and assembly, you need to edit the assembly and re-enter the original building materials.0906

So, keep that in mind. It does not track the history of what it used to be.0913

But, we can edit this at any time and add items to it, building materials or remove items from it, as well.0920

So, once we have that, we can click OK, and we will say "Yes, it is calculated total for building materials".0929

Cost is greater than the specified amount in the Sales Price field. Would you like to update sales price list item.0935

I will go ahead and say Yes. It will update it, and it will add our assembled item.0940

So, the sales price, we will say, under here...oh, actually we are not even done with this yet.0951

So, we have got that item, and we will get into the sales price in a minute here.0960

Now, we are going to talk about building finished goods in the next section of this.0965

Creating this item is actually building the Build Point when we need to add items to our inventory assembled items of this kit.0971

So, at this point, we want to put in five to finish this off, and the Build Point sets up a reminder,0981

again, a little tickler file in QuickBooks to remind us when we need to add that inventory.0987

Of course, we need to make sure that there is enough inventory in all the building materials, so that we can build these items, as well.0993

On hand, we are going to leave that field alone, and we are going to go ahead and change our sales price at this point in time, as well.1003

And we will change our sales price here to reflect at least the building materials' cost, and we will round it up to the 675 on this case.1016

So, we have it all done, OK?1029

We will click OK, and now, we have an exterior door kit assembled.1031

And it indicates that to us under the Type, a part that it is or a type, a service item that it is that says Inventory Assembly, and it gives us the price.1038

But, right now, we do not have any, but what we do want to do is talk about how we can build that finished product now.1050

Now, that we have the assembly item created, now, we need to build and add to the Inventory for Ready to Sell those kits.1059

So, in order to do that, we need to go ahead and go to the Vendor menu, and we are going to choose Inventory Activities.1071

And through that, we are going to say Build assemblies from the submenu.1080

And it is going to pull up a Build assemblies window for us, and we have a few of these things that we can choose.1085

But, the very first one is there is an Exterior Door Kit, and there is an Interior Door Kit.1094

We just created an Exterior Door Kit, and we are going to choose that from the drop down menu of our Assembly Item.1100

We are going to put down and hit tab. It gives us the date of today.1109

This is a build reference number that we can actually choose or count those up.1114

And under the bottom right corner where it says Maximum number you can build, and the quantity on hand is 16.1121

So, it already calculates how many we can actually build, and it tells us what we do, and then, we just say "Well, we just want to build two".1128

We are going to assemble only two of those for now, and we will hit tab.1136

We could put in a memo here if we like what we are doing. In this case, we are fine.1142

And from this point in time, we can go ahead and say Build and close. It will build those two items for us.1147

And we have two items on hand for the price of 675, so it gives us that for us.1154

The building and understanding the effects of Builds on inventory,1163

what happens as we build this item, it will go ahead and reduce the building materials.1173

It is going to reduce those quantities and increase the assembled item.1180

So, it is going to decrease the parts and increase the assembled finished product value.1187

So, we know that we have two of those. Therefore, we know that all the parts that consist in there are on hand and ready to sell.1193

We can actually generate a report that will show us some information regarding it.1201

We can look at the Item list and look at some of that for us.1207

But understanding that QuickBooks really does a good job in keeping track at the value1211

of the numbers of items that we actually have on hand, when we use the building of materials.1218

So, let's go ahead and go to the Reports menu, and we are going to run our QuickReport to generate an item list, so we can look at what we have.1225

Under the Report, we are going to choose the Reports menu. We will say Choose list.1234

So, under the Report menu, we will choose Lists, and we will choose the Item Listing from the submenu.1258

And it will pull up a general report for us, and we can look at all of our items and what we have on hand.1269

We can scroll down and look at some of those. We can see our Frames, Exterior.1277

We can see what we have on hand there. We can look at the various items over here.1287

Here is our Exterior Door Kit, and we have two items there. We have 20 Interior Door Kits etc.1291

So, it gives us a nice listing of what our inventory and what we have on hand.1298

This is something you can use to do your manual inventory count at the end of the period.1302

That is our lesson on setting up the inventory and going through the tracking of the finished goods and building materials and adding assembly items.1312

Thanks again for visiting Educator.com. We hope to see you again soon.1324

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