Usually inventory is simply bought, assembled if needed (manufacturing) and then sold for hopefully more than what is cost to produce. But what happens if I have inventory that needs some fixing up? Like say.. a used car that needs some repair work before I sell it? This screen cast shows you how I would account for this in QuickBooks by setting up the inventory items with sub-items so you can separately track the original cost and the repairs.
The real key to this is in setting up your items. You want to set up an item for the main product with at least 2 sub-items. Using the used car purchased for re-sale example your items should be set up as follows:
- Auto 1
- Original Purchase
Watch the Screen Cast on how to record Inventory Repairs in QuickBooks to see how this works.
Part 2 of this segment will show you how to complete the cycle by closing out the inventory balances in QuickBooks while building the assembly item in QuickBooks so that you can invoice for it as one item with one total cost and one selling price with one line item for it on the invoice.