I read that Quickbooks Pro isn't supposed to be used in manufacturering.
I didn't know that when I bought Quickbooks Pro 2001. Maybe I'm just interpreting what I read wrong on the message boards here.
I work for a computer networking company. We buy some items that we resell immediately, but some of those items will sit in inventory for a short while. Then maybe a couple weeks later we will use those items to build (manufacturer) a computer.
Do I understand correctly that Quickbooks Pro 2001 can't handel taking an item out of inventory to build (manufacturer) a computer? Does that mean I can't believe the profit and loss I see in my Quickbooks Pro 2001? That seems to be a big limitation. But I hope I'm just interpreting what I read wrong.
If Quickbooks Pro 2001 can't handle the manufacturering process to determine profit an loss, is there some other accounting program that Quicken makes that will handle my needs?
You could always enter the inventory parts that come in, then when it comes time to put them together you make an inventory adjustment.
Suppose I take items a, b, and c then put them together into item z. I bring in a, b, and c from a vendor (receive items/enter bills) then a week later I am making z. Vendors, inventory activities, Adjust Quantity/Value on hand and I lower my inventory count for a, b, and c but raise the count for z. Now I have shown that a, b, and c are gone with a new z in their place. The z can now be put onto customer invoices. Make sense?
In your case it will be workable the way the other responder told you. What they really mean by manufacturing is companies (for example) that buy baskets, ribbon, dried flowers, etc and make arrangements to sell. It's difficult to cost out X Ft. of ribbon, and 12 dried mums, etc. Or if you're making some kind of clothing using material and x feet of thread and notions. In your case, the inventory adjustments won't be that hard to do.
In a true manufacturing company, they also need to add into their inventory cost` not only the direct material costs, but the direct labor costs, the added burden (employer costs and benefits) and a proportional cost for overhead. This is what QB can't handle. If you are just adding some parts together without adding all the above, then it will work for you as the other posters have said.
It sounds like I can use Quickbooks for simple manufacturing, provided I do not want to allocate overhead costs to products. It looks like I can allocate payroll costs to jobs by using timesheets.
Now, what about timing? Can I set the inventory adjustment to not take effect until the invoice date of my job? I'm a project-type manufacturer, similar to boatbuilding, which they say on the website works.
