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Build Assembly can cause unclassified expenses

Build transactions cannot classify expenses from capitalizing labor and from adjusting average costs. Users who classify their expenses need a way to classify the expenses that QuickBooks cannot.

Solution description

Build Assembly can cause unclassified expenses in two ways:

  1. Adding labor to assemblies, which causes QuickBooks to capitalize labor expenses, displays as unclassified credits in the Profit & Loss (P&L) report.
  2. QuickBooks must adjust the average cost of the Inventory Assembly and offsets the changes to Cost Of Goods Sold (COGS). The adjustments displays as unclassified in the Profit & Loss (P&L) report.

To reclassify expenses, enter a two line Journal Entry by selecting the Company menu and then selecting Make General Journal Entries:

  • Each line uses the same account.
  • The first line does not list a class.
  • The second line lists a class.
 

Example: The Profit & Loss by Class report displays a $10.00 debit to COGS in the Unclassified column.

To access this report, go to the Reports menu and select Company & Financial > Profit and Loss by Class.

  • The first line of the Journal Entry is a credit to COGS for $10.00 to reverse the debit.
  • The second line of the Journal Entry is a debit to COGS for $10.00 with the desired class.

Note: Ensure the Class is listed on the second line of the Journal Entry, and not the first line.

KB ID# SLN42769
12/10/2016 8:06:06 PM
PPRDQSSWS407 9138 Pro 2017 7cb66c