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ScrapGal

Adjusting inventory for project item.

Posted By

How do I add inventory items to a project/class/kit , that will later be sold as an new item (class/kit)? I teach classes in my scrapbooking store and use items to build the project for classes/kits from inventory in my store. How do I do this? thanks

A friend who is a bookkeeper thought I should have an internal customer that the items are charged to on pay later and that is linked to an expense account for class costs. But not sure if this is the right way to do this as technically this account would keep increasing and not get paid. Sales from this method would go into an account set up for class sales and would not offset the expense account using this method.

I thought maybe item assembly would work, but not quite able to figure this out. I am new Sage50 Pro customer as of the fall.

Parents
  • 0

    Hi Scrapgal,

    You may want to create a new inventory item called project or kit.  Then, you can use Build from Item Assembly to select other inventory items needed and assemble the new project or kit items you just created.

    You can follow the steps below to use the Build from Item Assembly module.

    1. In the Home window, click Inventory & Services on the navigation pane.
    2. In the Tasks pane, click the Build from Item Assembly icon.
    3. In the Source box, enter the source document number.
    4. Enter a date.
    5. Type a comment explaining the item's assembly.  This is optional
    6. Click the magnifying glass in the Item column of the Assembly Components section.  Select the inventory item(s) to be used to build the assembly item, and enter the remaining information.  (The Unit Cost of an item can be changed in the Assembly Components section if your inventory costing method is average cost.  If you are using FIFO, it cannot be changed)
    7. In the Additional Cost box, enter additional assembly expenses, Examples are labor or other costs.  This is optional.
    8. Click the magnifying glass in the Item column of the Assembly Items section.  Click List  in the Item box of the Assembled Items section to display a list of inventory items. Select the new project/kit inventory item you are building  Then, enter the remaining information.   (Note: The Total of the Assembly Components (Amount plus Additional Costs), must equal the Total of the Assembled Items.)
    9. Click Process.

    If your class registration fee and material fee are separated, in the sales invoice, you can put the registration fee on the first line and then the new inventory item (project/kit) in the second line.  Then, give it to your students.

    If your class registration fee includes the material already.   You man consider using the Adjust Inventory module to reduce the newly created project/kit items used.  The entry will credit the asset account linked to the project/kit inventory item and debit the Adjustment Write-off expense account.  You can follow the KB article link below for more information of how to adjust an inventory.

    How to adjust the quantity of an inventory item to match the real quantity on hand ? - KB14878

    Hope this helps.

Reply
  • 0

    Hi Scrapgal,

    You may want to create a new inventory item called project or kit.  Then, you can use Build from Item Assembly to select other inventory items needed and assemble the new project or kit items you just created.

    You can follow the steps below to use the Build from Item Assembly module.

    1. In the Home window, click Inventory & Services on the navigation pane.
    2. In the Tasks pane, click the Build from Item Assembly icon.
    3. In the Source box, enter the source document number.
    4. Enter a date.
    5. Type a comment explaining the item's assembly.  This is optional
    6. Click the magnifying glass in the Item column of the Assembly Components section.  Select the inventory item(s) to be used to build the assembly item, and enter the remaining information.  (The Unit Cost of an item can be changed in the Assembly Components section if your inventory costing method is average cost.  If you are using FIFO, it cannot be changed)
    7. In the Additional Cost box, enter additional assembly expenses, Examples are labor or other costs.  This is optional.
    8. Click the magnifying glass in the Item column of the Assembly Items section.  Click List  in the Item box of the Assembled Items section to display a list of inventory items. Select the new project/kit inventory item you are building  Then, enter the remaining information.   (Note: The Total of the Assembly Components (Amount plus Additional Costs), must equal the Total of the Assembled Items.)
    9. Click Process.

    If your class registration fee and material fee are separated, in the sales invoice, you can put the registration fee on the first line and then the new inventory item (project/kit) in the second line.  Then, give it to your students.

    If your class registration fee includes the material already.   You man consider using the Adjust Inventory module to reduce the newly created project/kit items used.  The entry will credit the asset account linked to the project/kit inventory item and debit the Adjustment Write-off expense account.  You can follow the KB article link below for more information of how to adjust an inventory.

    How to adjust the quantity of an inventory item to match the real quantity on hand ? - KB14878

    Hope this helps.

Children

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