Building Inventory

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4 comments

  • Rebecca Ralls

    Thanks Tony, That's helpful! Can you tell me more? Or do you have any examples of how that would work in practice? I theoretically understand how that would work, but I'm a little fuzzy on the specifics of how things flow.

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  • Tony

    Rebecca,

    Most companies building custom products use project accounting versus "Product accounting". The projects are really the tool to build whatever they want. Using the completed contract methodology they can code all the transactions to a "Work in process" GL account on the balance sheet. They can simply recognize expense and revenue when they sell the item. 

    Thanks,

    Tony

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  • Rebecca Ralls

    Do you have a recommended process for building custom products?  

    Do you need to create a new product (and inventory balance) for every custom build you do? or is there some more nimble way to manage the customizations based on a single product?

    Thanks!

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  • Ryan Faulkingham

    Hi Rebecca,

    Each finished good that is being sold should be setup as a separate product. Once setup, multiple manufacturing orders can be generated per product. 

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