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Create, build, and work with inventory assembly items

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.

Inventory assembly item overview

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 item vs inventory assembly item

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

 

Inventory Assembly Items

 

 Cannot be included in another group item (nested) or in an inventory assembly item.  Can be included (nested) in other inventory assembly items and included in group items.
 Enables you to print on sales forms the individual items contained in the group.  Prints only the assembly name, not component part names, on sales forms.
 No reports available specifically for groups.  Appears after inventory part items on standard inventory reports; Pending Builds report lists assembly builds in the pending state.
 Quantity on hand of each item included in the group is adjusted in inventory at the time of sale.  Quantity on hand of component items is adjusted in inventory when the assembly is built.
 Sales tax is calculated by individual items included in the sales tax group item.  One sales tax code applies to the entire assembly, even if component item sales tax codes differ.
 For groups of inventory parts, QuickBooks tracks inventory of items in the group, not the group itself.  QuickBooks tracks assembly items in inventory.
 Price of a group item is the sum of the items in the group (although you can include an item in the group for a discount or additional charge to adjust the simple sum calculation).  Price of an assembly item can be anything you specify.
 Can include both taxable and nontaxable items.  Must be designated as either taxable or nontaxable.
 Can include any item type except other groups.  Can contain any of the following item types: service, inventory part, inventory assembly, non-inventory part, other charge. Notice that you can include other inventory assemblies (subassemblies) within an inventory assembly.

 

 

Detailed Instructions
KB ID# HOW20707
7/1/2016 1:05:00 AM
QYPPRDQBKSWS09 9132 Pro 2016 0193ad