This article describes the process of creating, building, and working with inventory assembly items in QuickBooks to track assembled goods that are produced, kept in inventory, and sold.
An inventory assembly item is one type of line items used when creating a sales or purchase form. Assembly items combine inventory part items and other assembly items (subassemblies) into a single item. Define a Bill of Materials to list the assembly item's component parts. Include costs associated with building the assembly item by adding non-inventory part items, service items, and "other charge" items to the Bill of Materials.
Creating and adding assembly items to inventory is a two-step process. First, define the Bill of Materials to specify what components go into making the assembly item, then build a quantity of the assembly item so QuickBooks can deduct the component parts from inventory and add new quantities of the assembled item. As soon as you build an assembly item, its component parts no longer exist as separate parts in inventory because they have become part of a new inventory item called an inventory assembly.
After assembly items are defined, they are added to inventory by "building" them. An assembly build is necessary to keep inventory quantities accurate. Each time an assembly item is built in QuickBooks, the inventory parts and other assembly items (subassemblies) in the Bill of Materials are deducted from inventory, and the quantity of the assembly item increases.
Group items and inventory assembly items are similar in that they both let you record a group of items as a single entry on purchase or sales forms, but they also have some important differences.
Group items are useful for quickly entering a group of individual items that you often purchase or sell together.
Assembly items let you combine inventory items and assembly costs into new, separately trackable items that represent the finished goods you produce and sell.
There are three ways to disassemble an assembly and return inventory components to inventory. Choose one of the following options:
NOTE: Component inventory parts and subassemblies are increased in inventory and the number of assemblies specified in the build definition are reduced by the difference of the original build quantity and the new one. If the build transaction you're editing is pending, the changes you make do not affect the quantity on hand of components and assembly items.
Important: QuickBooks does not track the quantity on hand of an assembly by specific build. This means that if you've already built the assembly more than once, you may have assemblies remaining from more than one build transaction. These assemblies are tracked as one quantity—even if you edited the components list between builds. We recommend that you sell out of a quantity of assembly items before editing the assembly's components list and rebuilding.