For example, if you have QB Pro, you don’t have assembly items, so that limits your choices.

If your decals are “stock” items, that you repeat, you might make them inventory assembly items so that you can consume the vinyl and ink and get some cost analysis of your produced items. But that makes more work, you have to “build” the decals, which takes extra steps.

If your decals are custom made each time, with different amounts of ink/vinyl, then assemblies might not work (although if you have QB Enterprise then there are ways to make that work). You might consider using a generic Group item that you modify each time you issue an invoice. But you don’t get the cost-to-make analysis.

If your vinyl and ink are bought in large bulk quantities, and are low cost per unit, and are used up fast, those might be non-inventory items. But that changes how you do the accounting…

The expense has to be posted to the same account when you spend it. That would be in another transaction. A paycheck, a regular check, something like that.

For example – I pay a vendor $10 to do some work. I have an expense for $10.00 and it shows in the P&L. I build an assembly, and I have that $10.00 as a burden item for the assembly. The build will reduce the expense by that $10.00 so now my expense account has a zero balance (assuming this is the only transaction for this account). My inventory asset account used in the assembly item will go up by that $10.00. I’ve moved the $10.0 off of the P&L and into the balance sheet. Later, when I sell that assembly, that $10.00 is included in the COGS account for the assembly (along with the other assembly costs).

I am trying to add service costs to my BOM when Building an Assembly. I can do this successfully, but then after I build the assembly, add that build to a SO, create an invoice from the SO, and then registered a payment against the invoice, I took a look at my P and L sheet.

The COGS went up by the raw materials listed in my BOm, as well as by the labor cost. The problem is, since I assigned the labor cost to an expense account called labor expenses, that account then also goes does – is negative – the amount of the labor cost. his means that I am not accounting for the labor expnse at all then. I tried re-doing this putting labor costs under a COGS Labor account, but the same thing happen, just with a negative number in COGS Labor to account for that cost.

What can I do to resolve this and count both my labor expnses and raw materials costs that go into making and selling a product_

Best,
Cecilia