If you are a manufacturer or distributor that builds finished goods or creates kits/assemblies as finished products, you'll want to learn more about the pending build feature in QuickBooks.
First, a quick refresher - the "build assembly" screen in QuickBooks is designed to:
- Add a new quantity of the assembly item into stock once the build is completed
- Remove the quantities of raw materials and other components from the assembly from stock once the build is completed.
TIMING IS EVERYTHING
Keep in mind that timing is everything when it comes to building assemblies.
What if it takes two weeks in order to finish production of an assembly item, yet you actually build the assembly in QuickBooks the first day that you send the order to the shop floor?
Unfortunately, QuickBooks doesn't know anything about build times or lead times - in the example above, you'll see an increase in your finished goods and a decrease in your raw material parts up to two weeks ahead of when the assembly item is actually produced.
Might this mess up your inventory information during that two week period? It is certainly possible that could happen!
ENTER THE PENDING BUILD
One simple click may remove a lot of frustration when it comes to your inventory in QuickBooks...
When you have the "build assembly" screen open, click on Edit in the menu bar, then "Mark Build as Pending". You'll see a stamp appear to tell you it is in "pending" mode as shown below:
By putting the build in "pending" mode, QuickBooks is then able to see the demand for the various parts inside of the assembly. This demand then flows into important reports such as the inventory stock status. Note the "for assemblies" column in the screen shot below - this is a great way to know how much of a given part is required based on open orders for assemblies:
NEED MORE FUNCTIONALITY?
If your business needs even more functionality than QuickBooks provides in the areas of manufacturing and distribution, you can evaluate the add-ons that plug into QuickBooks, such as ACCTivate and FishBowl Inventory.
- Where used in assemblies - a new feature in QuickBooks Enterprise 2014
- How to handle vendor prepayments when buying inventory