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QuickBooks for Manufacturers Tip: How to Add Labor to Bill of Materials (BOM)

by Ruth Perryman 9. February 2010 14:08

Question: Quick question - how to treat labor in the BOM's. The owner has it set up as an inventory item, but when he was away this week, no one could "add" labor to the stock qty so we could not build anything. Is there an easier way? I have read you can have non-inventory items on a BOM (or service etc). How is this posted in accounting? Anyway, your advice appreciated.

Answer:
You should use a service item. Make sure to check the box next to "This service is used in assemblies..." The purchase side should be your payroll expense account, the income side should be your revenue account.

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Ruth Perryman - QuickBooks Specialist Written by Ruth Perryman, CMA, CFE, CFM, MBA, DPA (ABD)

Ruth is the president of The QB Specialists, an Intuit Solutions Provider that has helped thousands of businesses throughout the United States, Canada and even the Caribbean get the most out of QuickBooks since 1996. Ruth has over 20 years of industry experience, including 5 years as a Chief Financial Officer. She is an Advanced Certified QuickBooks ProAdvisor and a member of Intuit’s Trainer/Writer Network. She is also certified in QuickBooks Point of Sale and Enterprise.

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