Step 1: Identify the inventory transfer
Step 2: Enter the inventory transfer's components
Step 3: Enter the inventory transfer's finished items
Step 4: Balance the transaction
Step 5: Choose what you want to do with the transaction
When creating inventory transfers, you should determine the type of inventory transfer you need:
After you've created an inventory transfer, you may decide that the total value of the finished item is actually greater than just the sum of the values of its components. If a finished item is built by human labor, for example, you might decide that labor costs should also be included in the total value of the finished item.
To increase the total value of a finished item, create a special inventory adjustment for the item. If the increased total value of the item is due to the cost of labor, we suggest that you allocate the inventory adjustment to a wage expense account.
Click below for the step-by-step procedure:
Identify the inventory transfer
Enter the inventory transfer's components
Enter the inventory transfer's finished items
Choose what you want to do with the transaction
Transfer Inventory Overview - Transferring inventory