In QuickBooks, Items are the goods or services that are bought and sold in the course of doing business. Items automatically recall pre-programmed descriptions, rates, units of measure, accounts and taxable status so that you do not have to retype the same information again and again. Both group items and assembly items allow you to save even more time by recording a group of items as a single entry on a purchase or sales form.
Group items allow for fast entry of a collection of individual items already on your item list. Alternatively, you can create and build Inventory Assembly items (you must have QuickBooks Premier Editions or QuickBooks Enterprise Solutions). Once created, any version of QuickBooks can be used to view, sell and report on existing assembly items.
When you build an Assembly Item, an assembled unit is automatically added to quantity on hand and its component parts (inventory or other Assembly Items) are automatically deducted from quantity on hand.
By using Assembly Items, you always know how many assembled and component items you actually have in stock. You can also specify a price for an Assembly Item that's different than the sum of the component items. (Group items have a sales price that is simply the sum of the sales prices of the items in the group.) You can even set reminders for future builds! At build time, QuickBooks will notify you if you don't have enough component items in stock to build the specified number of assembly items.
The following table compares group and assembly items:
The initial setup of an item will enhance or hinder accurate financial reporting of sales, purchases and the gross profit margin. To correctly report income and expenses when using an item on a form, the appropriate item type, sales and purchase information must be entered into the item.
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