Why would I want to track inventory for items I don't resell?
You may want to track inventory for items you don't resell in order to
get accurate job cost reports. At times you might get a better deal on
purchases if you buy them in bulk, or you might need to keep a certain amount
of stock on hand because you use that item frequently. For example, if you are
a painting contractor and you always use the same primer, you might want to buy
it in bulk and keep it on hand to reduce costs and time spent purchasing
primer. If you do maintain an inventory for items you don't resell, you
should track which items have been used on which job and enter the quantity and
item used into QuickBooks in order to get accurate job cost reports.
When using QuickBooks to track inventory, you can use a form to record all
materials used on a job. That form would periodically be given to a bookkeeper
or data entry operator so they can deplete inventory and allocate the cost of
inventory used to a specific job. For example, a painting contractor might keep
track of all materials used on a job by keeping all the wrappers from the
inventory items (paint brush, masking tape, tarp, and so on) in an empty five
gallon bucket. At the end of the job, or earlier if needed, the person tracking
inventory or job supervisor would record the items used on a Sundries Sheet.
This sheet would be a standard form that has been customized for your business
that lists all inventory you keep on hand. That sheet would then get passed to
a bookkeeper or data entry operator to use QuickBooks to deplete the inventory
and allocate inventory to a specific job.
To do this task
Create the inventory items you need to track.
After completing a job, gather the information about how much of each inventory item was used on the job.
Go to the Vendors menu, click Inventory Activities, and then click Adjust Quantity/Value on Hand.
In the Adjustment Date field, enter the date the job was complete and the customer was
invoiced. (In order to keep your accounting current, it is important that the
customer is invoiced as soon as the job is completed.
For Ref. No., enter the job name or reference number followed by the word costs.
You may need to abbreviate to fit the necessary information in the Ref. No. field. For example, you might enter PHB14 costs to mean the costs for Peacock Home Builders, lot 14.;
Click the Adjustment Account drop-down arrow and click Cost of Goods Sold or whichever account you use to track such costs.
(Optional)If you use Advanced Inventory, select inventory site. You can track multiple inventory sites with the Advanced Inventory add-on which is only available in QuickBooks Enterprise Solutions (additional fees may apply). Learn more at www.qbes.com/inventory.
Click the Customer:Job drop-down arrow and click the job the inventory was used for.
What if I haven't created the job in QuickBooks yet?
(If you use class tracking) Click the Class drop-down arrow and click a class.
Select an item used on the project.
Add multiple items
In the Qty Difference column for each item used on the job, enter a negative sign followed by the quantity used on the job.
For example, if you used two of a particular inventory item, you would enter -2 in the Qty Difference column.
Click Save & Close.