Comments on: Tracking QuickBooks BOM Revisions

By: Ted Miller

Ted Miller — Fri, 27 Jan 2012 05:48:03 +0000

Sounds like time for a third-party product. I know that Fishbowl Inventory will allow reverse assembly, and I am fairly certain that you can have a BOM and then remove items, like BOM says 4 doors, but this car has one damaged, so only get three doors off this one.

By: Charlie Russell

Charlie Russell — Tue, 13 Dec 2011 20:50:49 +0000

If you have Enterprise you can. Edit the BOM right as you issue the build. If you have Premier the you have to edit the BOM In the edit item window before you issue the build. Or do a inventory adjustment after you issue the build

By: Jim S.

Jim S. — Tue, 13 Dec 2011 03:59:36 +0000

This post provides great perspective on what you get and what you don’t with QB BOM. Thank you. Quick related functional quesiton. I can’t figure out how to actually change my build assembly. Quantities are easy enough to change, but what set of key strokes allow you to fully remove an item from a build assembly?

By: Charlie Russell

Charlie Russell — Mon, 17 Oct 2011 20:50:59 +0000

It would be a lot simpler use a quantity/value inventory adjustment (perhaps two, might be simpler to figure out), one to reduce the inventory assembly and a second to increase the inventory parts, rather than entering that complicated series of “builds”.

By: Msafiri

Msafiri — Mon, 17 Oct 2011 20:40:31 +0000

Carol, I think it might be possible to use inventory assemblies to perform “reverse manufacturing” for example if your client buys used cars and turns them into doors, engine, rear-bumper, side-mirrors and tires you could have an inventory part called “4-door saloon” and and inventory assembly called
“4-door saloon WIP” whose BOM will have “4-door saloon” as an item and “0.20″ as the quantity

and inventory assembly for each of the parts produced e.g.
a) “car door” whose BOM will have “4-door saloon WIP” as an item and “0.25″ as the quantity,
b) “engine” whose BOM will have “4-door saloon WIP” as an item and “1.00″ as the quantity,
c) “rear-bumper” whose BOM will have “4-door saloon WIP” as an item and “1.00″ as the quantity,
d) “side-mirrors” whose BOM will have “4-door saloon WIP” as an item and “0.50″ as the quantity and
e) “tires” whose BOM will have “4-door saloon WIP” as an item and “0.25″ as the quantity

When your receive a used car you build five “4-door saloon WIP”, you then proceed to build each of five parts that are desired.

Its ugly but …

By: Charlie Russell

Charlie Russell — Mon, 13 Jun 2011 15:29:21 +0000

Carol, it is very hard to give you a forensic analysis of your situation through blog comments like this. I’m not an accounting professional, and even if I was I don’t have enough information to give specific advice. You’ve got two big issues (at least). How to fix the problem you have with inaccurate information, and how to set them up so that they are using the system properly.

QuickBooks doesn’t do “reverse manufacturing” (at least as far as I would define it) at all, as you point out. Using inventory assemblies most likely isn’t going to do much for you, although there are some situations where they can be useful depending on how much post processing they do. In some cases you may want to look at non-inventory items instead of inventory parts, BUT if there are regulations in place that require them to track quantities that might not be possible. If they hold the items any length of time you also may need to stick with inventory parts.

It is complicated, and way beyond what I can help you with in a comment here.

By: Carol Leavitt

Carol Leavitt — Mon, 13 Jun 2011 00:32:47 +0000

Mr. Russell, Please advise. I recently landed a clean up job for a new company. Client knows he has set up issues and his 1st qtr #s are a mess. He was trying to use the inventory parts and assemblies in QBPremier 2011, but this is a recycle yard. He is actually reverse manufacturing. I.E. brings in an scrap item, processes and sells out 6 other items. His inventory values are weight based, but had no controls in place 1st qtr. He has negative inventory all over and a COGS $ on his 1st qtr P&L that is well above gross sales.
I can mathmatically back into beginning balances which were not set up and that will help with some of it. I have reviewed all your articles on inventory & mfgr ….other suggestions welcome. Thanks