Do you need to keep track of inventory items?
QuickBooks Online does not allow you to define a bill of materials for manufactured items, so if you are manufacturing anything it is impossible to keep track of your inventory for the materials used.
You need ManuDyn so that you can:
- Define a bill of materials
- Set re-order points
- Nominate multiple vendors for an item
- Generate commitments for materials based on sales orders
- Raise purchase orders based on requirements, re-order points, and inventory on hand
- Issue materials to a job
- Compare actual costs to estimates
-
Know what is in stock, what you need, and when you need it
What happens when I receive a purchase order in ManuDyn?
ManuDyn allows you to set the store that the purchase is being received into, the quantity being received, and optionally a lot number. Using this information the item's quantity in stock and average cost is updated in ManuDyn so that it can issued to a job or invoiced.
What happens when I receive a vendor bill in ManuDyn?
When you receive the vendor bill and reconcile it with the purchase order QuickBooks Online is updated to increase the value of the Inventory Asset account instead of treating it like an expense.
What happens when you issue materials to a Job?.
The item's quantity in stock is reduced and the cost is recorded against the job. If applicable a lot number is also selected. In QuickBooks Online the value of the issued material is transferred from the Inventory Asset account and moved to the Inventory WIP account.
What happens when the manufactured item is finished?
The item's quantity in stock is increased. In QuickBooks Online the material value of the job is moved from the Inventory WIP account to the Inventory Asset account.
What happens when a manufactured or material item is invoiced?
The item's quantity in stock is reduced and if optionally a lot number and/or serial number can be identified. In QuickBooks Online the material value of the item is moved from the Inventory Asset account to the Cost Of Goods Sold expense account.
How is this different from how QuickBooks Online handles inventory movements?
With the "Inventory Cost Accounting" feature turned on in QuickBooks Online you have to manually adjust the quantity on hand for each material in order for the Inventory Asset and Cost of Goods Sold accounts to be correct. With long manufacturing times you have to make a choice of your quantity in stock being correct or your COGS being correct. With the "Inventory Cost Accounting" feature turned off in QuickBooks Online everything received under a vendor bill is recorded as an expense immediately, so you don't know the value of your inventory and your true COGS.
With ManuDyn you know the quantity you have in stock, the value of your inventory, how much is in Work in Progress and your Cost of Goods Sold.