Small business owners often search for cost-effective solutions to efficiently manage their business needs. This is the sole reason why more and more businesses are now shifting towards QuickBooks Online to manage their accounting and bookkeeping needs effectively.
QuickBooks is accounting software that is easy to set up and has a simple user interface. It keeps all your data in one place and ensures smooth processing. You can create customized reports and export them onto other applications using the useful features of this bookkeeping software.
Though several training courses are available online, most do not teach you how to create inventory assemblies – an essential part of the QuickBooks online application that will help you ensure efficient data management. Though the concept is quite simple, and the application helps you out in the process, it can still prove to be a complex task at times.
A guide to building assemblies in QuickBooks online
We have compiled a handy guide that will teach you how to build assemblies in QuickBooks Online. Before you start, make sure that you have formed detailed records of items that will be added to the assemblies. If there are any new items, you can add those later. However, it is best to add all items beforehand to ensure smooth processing.
We have listed all the steps that will help you create a simple assembly. Several issues can arise when creating and selling builds. Therefore, if you plan on doing these frequently, you should consider taking a QuickBooks class to understand them more completely.
- Click on the ‘Vendors’ menu and open the ‘Inventory Activities > Build Assemblies.’ A dialogue box will pop up in front of you.
- Click on the arrow next to the category labeled ‘Assembly Item’ and click on the option ‘<Add New>.’ A ‘New Item’ box will appear, displaying ‘Inventory Assembly’ as highlighted. Select ‘New Item’ and enter the ‘Item Name or Number’ in the field.
- You will not yet be entering anything in the field of ‘Cost’; however, you can enter a description in the ‘Description’ category. Also, you need to make sure that you have chosen the correct Cost of Goods account under the ‘COGS Account’ category.
- Go down to the box below ‘Bill of Materials – BOM.’ Click on the space underneath ‘Item’ and access the list of items present in your inventory by clicking the down arrow. Choose the first option in the assembly and fill up the ‘QTY – Quantity’ field. Go down to the next option and continue doing this process until you have entered all the required information.
- QuickBooks Online continues tallying the costs of the items present in your assembly, which is not the sales price and puts the total beneath the ‘Bills of Materials (BOM)’ box.
- The ‘Asset Account’ must display accurate information. You need to enter the number of new builds that need to be ordered in the ‘Build Point’ field. If you know the number of builds you have in your hand, type that number on the ‘On hand’ box. QuickBooks then calculates the total value of your current builds and presents the figure in the ‘Total Value’ box.
- Once you are done with the above steps, you can scroll back up and issue a ‘Sales price,’ which will be based on the cost along with the markup. When you are done, click on ‘Ok.’ The screen that comes up after that will ask you the number of assemblies you want to build—type in the number of assemblies you want to build and save the record.