Mac computers are becoming more popular every day, and we at CIAS QuickBooks get a lot of customers who want to switch from QuickBooks for Windows to QuickBooks for Mac. While the QuickBooks 2011 for Mac has a lot of the features of the Windows version, there are still some functionality missing. One big difference is the lack of assembly items in the Mac version. Depending on the needs of your business, there might be a workaround that you can implement that will still let you use QuickBooks for Mac.
Assembly items are items that are made from other items. A good example of this is a bike shop that sells individual parts (wheels, seats, chains, etc.) but also can use those parts to build a complete bike. When you build an assembly item, you are removing the individual pieces from your available inventory and increasing the availability of the final product. The value of the completed final product is the sum of the value of all the items used to make the final product. In this case, the cost of one bike is the sum of the costs of all the pieces used.
To mimic this in QuickBooks, you need to make an adjustment to your QuickBooks inventory that will reduce the individual pieces, and increase the final product, but you must also make sure that your costs are correct so you don’t show a loss (or a gain) in inventory value. The way to do this is with an inventory adjustment, and a cost adjustment. There are a few steps, so this may not be for everyone.
The first step is to reduce the components that make up an assembly. To do this, go to the Vendors menu, select Inventory Activities, then Adjust Quantity/Value on Hand. You’ll need to select an adjustment account, and I recommend that you create an expense account specifically for tracking these adjustments (called something like Pending Builds). On the inventory list, change the New Quantity (or Qty Difference) to reflect that the components are no longer available. After you have adjusted the quantities for ALL the components, make note of the amount at the bottom called “Total Value of Adjustment”.
The second step is to create an adjustment that increases your finished product. You’ll go to the same place to do the adjustment (Vendors > Inventory Activities > Adjust Quantity/Value on Hand). Select the same expense account as the previous adjustment. Then, locate the finished product and change the Quantity to reflect the increase of how many were built. Finally, we need to increase the value of…