New question on average cost

How do you get an average cost if you don't purchase an item, and without going through the Inventory Value Adjustment? Most of our Assy Parts have a Bill of Material so I can do a build as a work order, but the item on the BOM is a dummy part created JUST to be on a BOM for a build. This dummy part has no cost. This means the "total of bill of materials cost" is zero. Also, I have "we purchase this part from a vendor" so I can use the Manufacturer's Part Number field as a cross-reference field. The cost field is either for a purchase cost from a vendor, or a mark-up cost field used for setting sales price.

When I receive the parts into stock as a build, the Average Cost stays zero. How do I set a cost in Quickbooks that will adjust the average cost if the part isn't purchased? According to the help, the average cost field is ONLY adjusted if the part is purchased. How else can I adjust it without going through a Valuation adjustment???

Reply to
Head Hunter
Loading thread data ...

Update. I just received a build into stock that did have a valid Bill of Materials. It put the parts into stock using the Bill of Materials cost for the average. That sort of makes sense, but a manufactured parts' cost is more than just the sum of its' parts. But you can't add additional cost, for example labor and overhead, to the average cost for the part in inventory. Quickbooks seems to think that is what the "Cost" field is for, and is only for figuring the selling price. But, labor is part of the parts cost, and should be included in the inventory cost of the part. Is there a way to add a cost to the cost of the part when it goes into inventory?

Reply to
Head Hunter

Well, you are right, but there is a reason. You are correct that QB doesn't have a way to track labor cost of an assembly. If it did, it would have to subtract that labor cost from your COGS accounts . -- You are recording your COGS labor in a COGS account and not expensing it aren't you? -- Also consider you could have subcontract labor and an overhead allowance built into that assembly. QB isn't GAAP and doesn't pretned to be.

Reply to
Golden California Girls

Hey Girls,

If you didn't talk your mouth off so much you would have time to review version 2006. Version 2006 can incorporate as many overhead costs into a build as necessary. Version 2006 rules!

Reply to
Allan Martin

90% of the world isn't running 2006 and aren't going to pay to purchase a brand new product - NO UPGRADE PRICE AVAILABLE - until they are forced to. Thus the 2003 users will be buying 2006 this year, the 2004 users 2007, the 2005 users 2008. Funny how saving $$ is the thing most loved by most boss types. Of course seeing as there are still a lot of posts for 99 on this NG, I doubt that a lot of users will ever upgrade.

P.S. Thanks for confirming that anyone prior to 2006 and who has inventory needing builds should not have purchased or used QB.

Reply to
Golden California Girls

No way!

Reply to
Just Cocky

Reply to
Ed Adams

When discussing software, its the current version that matters not what was in the past. Any feature that is missing today in version 2006 will still be missing in that version 1,000 years from now. It will never change. We must look to the future.

Reply to
Allan Martin

You obviously don't understand marketing or the human psyche.

Reply to
HeyBub

Reply to
Steve Scott

COGS labor? How do I attach that? I only have material in them right now.

Reply to
Head Hunter

BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.