Non-Inventory Part Items in QuickBooks – Instructions

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Non-Inventory Part Items in QuickBooks – Instructions

Non-Inventory Part Items in QuickBooks: Overview

You can create Non-Inventory Part items in QuickBooks within the Item List. These types of items are bought and/or sold, but not tracked as “inventory part” items. QuickBooks tracks neither the quantity on hand nor the value of “non-inventory part” items.

Like all items, you create Non-Inventory Part items in QuickBooks by first opening the “Item List” in QuickBooks. To create a new Non-Inventory Part item in QuickBooks, click the “Item” button in the lower-left corner of the list window. Then select the “New” command. In the “New Item” window that opens, select “Non-inventory Part” from the “Type” drop-down.

The fields in the “New Item” window are similar to the ones shown when creating “Inventory Part” items. First, enter a name for the part into the “Item Name/Number” box. To make this part a subitem of another part, check the “Subitem of” checkbox. Then select the non-inventory part under which the item should be categorized from the adjacent drop-down menu.

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If needed, you can enter a part number into the “Manufacturer’s Part Number” field. Enter a description of the part to show in invoices and sales receipts into the “Description” field. Then enter the “Price” and set the “Tax Code” by using the fields of the same names. Then assign the amount to an income account by using the “Account” drop-down.

For non-inventory parts purchased for specific customer jobs, check the “This item is used in assemblies or is purchased for a specific customer:job” checkbox. This then changes the fields available. If checked, the fields become the same fields shown when creating “Inventory Part” items.

In this case, enter the purchasing information for the item into the fields shown in the “Purchase Information” section. Then enter the sales information for the item into the “Sales Information” fields. This lets you use the item in both purchase and sales transactions. After creating the “Non-inventory Part” item, click the “OK” button to save it into the “Item List.”

Non-Inventory Part Items in QuickBooks: Instructions

To create a new Non-Inventory Part item in QuickBooks, open the “Item List” window.
Then click the “Item” button in the lower-left corner of the list window.
Then select the “New” command.
In the “New Item” window that opens, select “Non-inventory Part” from the “Type” drop-down
Enter a name for the non-inventory part into the “Item Name/Number” box.
To make this part a subitem of another part, check the “Subitem of” checkbox.
Then select the non-inventory part under which the item should be categorized from the adjacent drop-down menu.
If needed, enter a part number into the “Manufacturer’s Part Number” field.
Enter a description of the part to show in invoices and sales receipts into the “Description” field.
Enter the default “Price” of the non-inventory part when used in sales forms.
Select the “Tax Code” for the non-inventory part.
Select an income account to which you attribute sales of the part by using the “Account” drop-down.
For non-inventory parts purchased for specific customer jobs, check the “This item is used in assemblies or is purchased for a specific customer:job” checkbox.
If checked, the fields become the same fields shown when creating “Inventory Part” items.
In this case, enter the purchasing information for the item into the fields shown in the “Purchase Information” section.
Then enter the sales information for the item into the “Sales Information” fields.
This lets you use the item in both purchase and sales transactions.
After creating the “Non-inventory Part” item, click the “OK” button to save it into the “Item List.”

Non-Inventory Part Items in QuickBooks

The following video lesson, titled “Non-Inventory Items,” shows you how to create Non-Inventory Part items in QuickBooks. This video lesson is from our complete QuickBooks tutorial, titled “Mastering QuickBooks Made Easy v.2018.”

QuickBooks Manufacturing: Starting with the Basics

I have a mixture of subscribers to this blog, from brand new users to seasoned veterans. So I’ll start with some very basic points for the uninitiated.

Note that I’ll be discussing features in the US Premier and Enterprise editions. Some screen shots may vary from what you see, as there are variations from one year of QuickBooks to the next.

First off – if you are using Simple Start or Pro then much of this won’t apply to you. The inventory assembly item that we will be using is only found in Premier and Enterprise. In addition, Enterprise has features that relate to manufacturing that aren’t found in Premier. I’ll try to point that out when possible.

The basic process to get started with assembling items is

Create the inventory parts that are components of your assembly.
Create the inventory assembly and assign it the parts you use.
“Build” or assemble your inventory assemblies.

Create the Inventory Parts

The first step you need to take is to enable inventory management in your company file. This is not set up by default – and it can be confusing to new users because you will see the item list even if it is not enabled.

Select Edit from the main menu, then Preferences. Select the Items & Inventory option, then the Company Preferences tab. Put a check mark in the box by Inventory and purchase orders are active.

Now you can add your inventory parts to the item list. While in the item list press cntrl-N to add a new item.

There are several different kinds of items that you can add – we’ll work just with inventory part items now (discussions on how to use other item types will be in future articles).

For each material item that you use as a component in your assembly, add an inventory part. You can also create non-inventory parts for items that you don’t keep track of by count. Please note that I do not recommend that you enter an on hand value at the bottom of the screen at this time, unless you are starting up QuickBooks for the first time and you have taken a physical count of your inventory.

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Create the Inventory Assemblies

After you have created all of your inventory part items, you can add an inventory assembly item for each manufactured item. The primary difference from an inventory part is that you can assign a component list, a bill of materials (or “BOM”). This is a list of all of the parts

In this example, to make one “WHAS” wheel assembly we need two SC-12 screws and one RORO-4 roller.

Build the Assemblies

Now that we have defined the parts and assemblies, we can build the assembly. From the Activities button at the bottom of the item list, click Build Assemblies. In the Build Assemblies dialog you will select the assembly to build and enter the number of this assembly that you want to build.

When you click either of the build buttons, the program will save this build (if possible, as discussed below). Two things happen now:

QuickBooks will remove the quantity needed amount of each of the component items (I refer to this as consuming the items in a build).
QuickBooks will increase the quantity of the inventory assembly item by the quantity to build.
Essentially we are moving the cost of the inventory part assets into the inventory assembly asset.

Note the maximum number you can build… value. QuickBooks won’t let you build an assembly if you don’t have enough parts on hand to build it, This value shows you how many you can build with the parts that you have.
If you enter a quantity to build that is higher than that maximum number, QuickBooks will mark the “build” as Pending. This means that it hasn’t been built, it is waiting to be built. There are reports that list the pending builds.
When you enter the quantity to build much of the information in this dialog will not be updated until you move the cursor to another field, such as the date or memo. This can be confusing at first. When you move the cursor off that field the qty needed is updated, and the pending stamp could be displayed.
The Date field is very important. This is the date that the build transaction takes place. The quantity on hand for the component parts is based on your inventory status as of this date. Sometimes people get frustrated – they look at an inventory report and it says you have enough, but this dialog says you don’t! The issue is usually the dates – if the report is dated after a PO is received, but your build is dated earlier, you might not have had those parts on this date. Adjust the date in either your report, or the build.

As you might expect, the same issue relates to the assemblies you build – they are only available on or after the build date, not before.

This has been a quick overview of how to work with an assembly item and to issue a build. We’ll go into more detail about how to structure the BOM, and use other item types, in the future.

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