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Author Topic: Quickbooks Pro and inventory for production of framed prints  (Read 898 times)

MichaelEzra

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Quickbooks Pro and inventory for production of framed prints
« on: October 02, 2017, 10:50:36 PM »

Does anyone here has experience in setting up Quickbooks pro inventory for tracking the use of raw materials in production of framed photographs?
Foamboards, mats, paper rolls get "broken down" for each individual product created (multiple products from each raw item), while frames are the opposite - it is assembly from sections (single product from multiple raw items).
Can't figure out how to handle these within this software. Any advice is much appreciated:)!

Stephen Ray

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Re: Quickbooks Pro and inventory for production of framed prints
« Reply #1 on: October 03, 2017, 12:31:29 PM »

I think QB Pro only accommodates simple inventory of items to be re-sold (in whole) as opposed to a more complicated manufacturing process such as yours. Your process is “portioning” of your raw materials.

QB uses the qty and item ID from the line item fields on the invoice to deduct from the On Hand field in inventory. QB doesn’t know how you’ve portioned a case, roll, sheet, etc. of material and therefor cannot calculate the On Hand result.
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MichaelEzra

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Re: Quickbooks Pro and inventory for production of framed prints
« Reply #2 on: October 03, 2017, 01:28:29 PM »

Thanks, I suspected that. I suppose that one way around that in QB is to use a temporary work in progress account, so raw materials get moved there, the outcome of the work is creating of inventory items which are ingredients of the final product with 1-to-1 mapping. E.g. move 2 rag mats to work in progress, result is 4 16x20 rag mat portfolios. Not sure yet what to do with the leftovers:)

Stephen Ray

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Re: Quickbooks Pro and inventory for production of framed prints
« Reply #3 on: October 03, 2017, 03:18:47 PM »

I'm curious as to what exactly you are asking QB to tell you or do for you?
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MichaelEzra

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Re: Quickbooks Pro and inventory for production of framed prints
« Reply #4 on: October 03, 2017, 11:51:10 PM »

As IRS requires inventory management, I am trying to setup QB to answer that requirement.
Ultimately, inventory gets expensed via cost of goods sold.
But goods and their cost don't easily translate to cost of raw materials due to complex "portioning", which as you mentioned QB are incapable of accommodating natively...
So I am looking at ways to implement this translation in QB indirectly.



Joe Towner

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Re: Quickbooks Pro and inventory for production of framed prints
« Reply #5 on: October 04, 2017, 12:53:24 AM »

https://community.intuit.com/articles/1501320-create-build-and-work-with-inventory-assembly-items

This may be a good starting point.  Things you'll need to have categories for are waste and demo.  As to things like paper, increment it in feet, not as a roll.

-Joe
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MichaelEzra

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Re: Quickbooks Pro and inventory for production of framed prints
« Reply #6 on: October 04, 2017, 01:45:49 PM »

Thank Joe, this can work for assembly of the framed print from the correctly sized assembly parts (mats, prints, frames, acrylic, foamboard, etc)

The complication is that assembly parts are not purchased correctly sized initially, but made from raw material (E.g. 32x40 mats cut into 16x20 window mats, which become assembly items).

Joe Towner

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Re: Quickbooks Pro and inventory for production of framed prints
« Reply #7 on: October 04, 2017, 05:31:54 PM »

Well, you could enter .25 of the 32x40 mat - or if you're going to cut them down in advance, specify a job and (-) the large sheets and (+) the small sheets, plus account for your time (nothing is free).

Inventory is a huge thing, here's a simmilar thread.  Take away the 'photo' description of the business, it's just raw materials & inventory.

Here's some videos to take a peak at - at first glance they may answer a lot of your questions. https://www.youtube.com/user/BSPforQB/videos
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BobShaw

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Re: Quickbooks Pro and inventory for production of framed prints
« Reply #8 on: October 08, 2017, 08:34:25 PM »

You may be overthinking this. I don't know anything about the IRS but when I ran a framing business I regarded moulding, glass, mat board as consumables and just wrote them off when purchased.

I used my own software called GetFRAME to see how much material was used in each job and costed it accordingly.
It doesn't track usage at the moment but could be added.
Demo is here
http://advantageconsulting.com.au/hikashop-menu-for-products-listing/category/17-getframe-custom-framing-software.html
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MichaelEzra

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Re: Quickbooks Pro and inventory for production of framed prints
« Reply #9 on: October 09, 2017, 01:57:41 PM »

Joe & Bob, thank you, I will take a look!
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