I have a hundred sets of guitar strings that aren't selling well. Musicians are religious about buying their brand of strings but no one gives a hoot what brand it is if they buy a single replacement string. So, I'm splitting up the sets into individual strings. Is there a way in QB 2007 Premier to remove a single set from inventory and convert it to six individual items? Sort of like a reverse build.
Bob
You need to use Inventory adjustments to accomplish this. Setup a new item for the single strings. Reduce the original 6-string item by 1 and increase the newly created one by 6. Click on the Value adjustment box so that you can adjust the $ amount in both adjustments. I would think that you would want a net zero $ impact to inventory when you do these adjustments.
The problem is that it requires an adjustment account. Since no value is lost nor gained, what is there to adjust? Do I create a bogus temporary account and then delete it afterward?
Bob
No, don't create a bogus account. Since there will be multiple transactions posted to the account, you won't be able to delete it. Hide, yes. Delete, no.
Most inventory adjustments are posted to the Cost Of Goods sold (COGS) account so I would just use that account in this case. Keeps it consistant with other inventory adjustments you might do.
OK, I've never done an inventory adjustment in QB because the help files don't clearly indicate how to do it. Time for some trial and error education.
Bob
Back up your file before making the adjustment. If you don't like the result, just restore the backup and start again. OR experiment with one of the sample company files. That's what they are there for.
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