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Inventory assembly item overview

You can create inventory assembly items in QuickBooks to track assembled goods that you produce, keep in inventory, and sell.

What is an inventory assembly item?

"Inventory assembly item" goes here

You must use the Premier or Enterprise Solutions edition to create and build inventory assembly items. Learn how to upgrade your edition of QuickBooks.

Understanding how inventory assembly items work

The following information is important for using inventory assembly items.

  • The two-step creation process for inventory assembly items

    Creating an inventory assembly item is a two-step process. First, you create (define) the assembly item by listing what goes into the assembly. This list is called the Bill of Materials. When you define the assembly item, you also indicate how many of this assembly (if any) already exist in inventory.

    After you define an assembly item, the way you add assembly items to inventory is by "building" them. An assembly build is necessary to keep your inventory quantities accurate. Each time you build an assembly item in QuickBooks, the inventory parts and other assembly items (subassemblies) in the Bill of Materials are deducted from inventory, and the assembly item's quantity is increased appropriately.

  • How QuickBooks tracks the cost of inventory assembly items

    The cost of an inventory assembly item is calculated by adding together the cost of each item on the Bill of Materials. For inventory part items and inventory assembly items (subassemblies) on the Bill of Materials, the current average cost is used. The cost listed in the Bill of Materials is used for all other items.

    Building vs. buying an inventory assembly item

    Even though you create an inventory assembly item and normally build that assembly item yourself, there may be times when you need to buy it. In that case, the cost of the item is simply the price you paid for it.

  • What do I need to know about pending builds?

    When you create a build and there are not enough of one or more inventory part items or inventory assembly items (subassemblies) to complete the build, you can mark the build as pending and then later, when you have enough inventory items, mark the build as final.

    You can also mark a build as pending even if you have enough inventory on hand to complete it. This is useful for scheduling future builds and reserving the necessary inventory items until you're ready to complete the build. If you want to use pending builds in this way, make sure you set your inventory preferences to deduct inventory quantities on pending builds when showing available quantities.

    Important: There are times when QuickBooks may change the status of a completed build from final to pending. That is because the ability to complete the build is directly tied to the build date and the inventory quantities available on that date. So if you change a transaction, such as an item receipt or bill, that reduces inventory levels on or before the build date, the build may be changed to pending status. We recommend you run the pending build report periodically to check if any completed builds were unintentionally changed to pending status. Once QuickBooks changes a build to pending status, you must manually change it back to final to make the assembly item quantities in QuickBooks inventory correct again.

  • Understanding the difference between an inventory assembly item and a group

See also

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