How to Build Assemblies in QuickBooks

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An assembly in QuickBooks is a single unit product made up of two or more items in your inventory. While this is used primarily by manufacturing companies that receive parts to put together the assembly, any company that uses received parts to build a whole unit can use the Assemblies feature in QuickBooks. Each part is accounted for and received into inventory separately and then built into an assembled unit, which is then added to the inventory as an assembled part. One example is a bar stool. Each leg and the seat are added to the inventory when received. When the bar stool is built, the QuickBooks assembly removes these pieces from inventory and adds a stool.

Preparation Steps

  • Add all items that will be used as assembly pieces. Click on the "Lists" tab in the top menu bar and choose the "Item" list. When the Item list opens, hold the "CTRL" and "N" buttons down to create a new item. When the "Add New Item" menu opens, you will be prompted for the "Type" of item you are entering. Choose "Inventory" item.

  • Type in the name of the new item in the "Item Name/Number" box. If you will be using the QuickBooks to email your suppliers to order more, it's better to use a name for each item that your suppliers will recognize for that item.

  • Note the two boxes below labeled "Description." The one on the left is the description that will print on your purchase orders when you order more from your supplier. The one on the right will print information on sales receipts and invoices that your customers receive. You can use a different description for each box.

  • Enter your cost for each item in the "Cost" box located under the "Description on Purchase Transactions" box. The QuickBooks will default to assigning the Cost of Goods Sold account to those costs. Underneath the COGS box is the "Preferred Vendor" box which will be the vendors you use.

  • Enter the sales price you charge for that item into the "Sales Price" box. This is used if you sell these parts individually. If not, all you will need is the cost information. If you do, choose the appropriate income account for the sales made.

  • Under the "Inventory Information," choose the "Reorder Point" or the minimum number of these items you will need on hand before having to order more. Enter the number you currently have on hand in the "On Hand" box. Repeat these steps for each item that will be used in an assembled item.

Building the Assembly

  • Open the items list again and hit "CTRL" and "N" to create a new item. Choose the "Inventory Assembly" for the "Type" of item.

  • Name the assembled item, making sure not to use similar names for different assembled items.

  • Enter the description information for purchases and sales in each box.

  • Enter the sales price for this new assembled item into the sales price box and choose the appropriate income account.

  • Add each item used in this assembled product in the "Bill of Materials" box located at the bottom of the New Item page. The information you entered for each item should populate the rest of the columns. Click "OK" and the Inventory Assembly item has been created.

Tips & Warnings

  • You can add non-inventory parts, or another charge to an assembly for labor, or another expense of piecing the assembly item together.
  • If your items for assembly are already entered, you can go to the Vendor's menu and choose "Build Assembly."

References

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