Creating an item that you build

When you build items, you should determine if you want to enter the item information individually using Build Items or if you want to automaticallly enter the item information using Auto-Build Items:

If you haven't set up a finished item's auto-build information but you want to immediately build the item, you should use the Build Items feature. (To build an item)

If you've already set up a finished item's auto-build information, or if you wish to build many different finished items, you should use the auto-build items feature. (Auto-building items)

When building items, the amount displayed in the Amount field at the bottom of the Amount column must be $0.00. This zero amount indicates that the transaction is balanced; the value that is transferred from one item (or several items) is the same as the value transferred to the other item (or several items).

After you've created a built item, 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, you should allocate the inventory adjustment to a wage expense account.

Step by step