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How to Add Labor to Bill of Materials (BOM) in QuickBooks for Manufacturers
Published 02/09/2010 | 
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 quantity, 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? Your advice appreciated.
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.
Written by +Ruth Perryman, CMA, CFE, CFM, MBA
Ruth has provided QuickBooks help to thousands of businesses around the world since 1996. She is an Intuit Solutions Provider, an Advanced Certified QuickBooks ProAdvisor, and a member of the Intuit Trainer/Writer Network. She is also certified in QuickBooks Point of Sale and QuickBooks Enterprise Solutions.
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