Splitting inventory assemblies into components

[RobertM]

I have a hundred sets of guitar strings that aren't selling
well. Musicians are religious about buying their brand of
strings but no one gives a hoot what brand it is if they buy
a single replacement string. So, I'm splitting up the sets
into individual strings. Is there a way in QB 2007 Premier
to remove a single set from inventory and convert it to six
individual items? Sort of like a reverse build.

Bob

 

[Laura]

I have a hundred sets of guitar strings that aren't selling well. Musicians
are religious about buying their brand of strings but no one gives a hoot
what brand it is if they buy a single replacement string. So, I'm splitting
up the sets into individual strings. Is there a way in QB 2007 Premier to
remove a single set from inventory and convert it to six individual items?
Sort of like a reverse build.

You need to use Inventory adjustments to accomplish this. Setup a new item
for the single strings. Reduce the original 6-string item by 1 and increase
the newly created one by 6. Click on the Value adjustment box so that you
can adjust the $ amount in both adjustments. I would think that you would
want a net zero $ impact to inventory when you do these adjustments.

 

[RobertM]

You need to use Inventory adjustments to accomplish this. Setup a new
item for the single strings. Reduce the original 6-string item by 1 and
increase the newly created one by 6. Click on the Value adjustment box
so that you can adjust the $ amount in both adjustments. I would think
that you would want a net zero $ impact to inventory when you do these
adjustments.

The problem is that it requires an adjustment account.
Since no value is lost nor gained, what is there to adjust?
Do I create a bogus temporary account and then delete it
afterward?

Bob

 

[Laura]

The problem is that it requires an adjustment account. Since no value is
lost nor gained, what is there to adjust? Do I create a bogus temporary
account and then delete it afterward?

No, don't create a bogus account. Since there will be multiple transactions
posted to the account, you won't be able to delete it. Hide, yes. Delete,
no.

Most inventory adjustments are posted to the Cost Of Goods sold (COGS)
account so I would just use that account in this case. Keeps it consistant
with other inventory adjustments you might do.

 

[RobertM]

No, don't create a bogus account. Since there will be multiple
transactions posted to the account, you won't be able to delete it.
Hide, yes. Delete, no.

Most inventory adjustments are posted to the Cost Of Goods sold (COGS)
account so I would just use that account in this case. Keeps it
consistant with other inventory adjustments you might do.

OK, I've never done an inventory adjustment in QB because
the help files don't clearly indicate how to do it. Time for
some trial and error education.

Bob

 

[Laura]

OK, I've never done an inventory adjustment in QB because the help files
don't clearly indicate how to do it. Time for some trial and error
education.

Back up your file before making the adjustment. If you don't like the
result, just restore the backup and start again. OR experiment with one of
the sample company files. That's what they are there for.