QuickBooks Enterprise has strong inventory management features that help manufacturing companies track raw materials, work-in-progress (WIP), and finished goods, including labor and shipping with landed cost and bill of materials. However, in addition to inventory management, Enterprise also offers other great features for manufacturing businesses, which we will discuss in this article.
Bill of Materials (BOM) Cost Tracking
An important step in manufacturing is tracking bill of materials (BOM). Manufacturing firms like electronics, pharmaceuticals, and automotive companies often need to use inventory parts and supplies in order to build a product. The job of QuickBooks Enterprise is to help manufacturing businesses track the BOM costs of each product, including overhead, labor, and the cost of subassemblies. One of the biggest benefits of Enterprise is that it automatically updates labor and material costs when the cost of a particular component changes. This eliminates manual data entry, reducing error and improving production.
Backorder is the process of allowing customers to place an order for an item that is currently not available. While backorders can be beneficial in different ways, they can also be detrimental when not managed properly. QuickBooks Enterprise helps you easily track back orders to avoid delays. Sales orders and invoice forms in Enterprise have a backorder column that shows exactly which products are waiting to be shipped. It also includes a backorder field showing what you expect to receive from your vendors.
Customized Reports for Manufacturing Businesses
Enterprise provides crucial reports that are highly customizable to the manufacturing industry. Some of the most useful reports you’ll find include Inventory Valuation Summary Reports, Inventory Stock Status by Item Reports, Sales by Products, Sales by Class and Item Types, and Profitability by Products. You can create customized reports or you can start with the basic ones. Advanced Reporting in QuickBooks Enterprise provides important information that helps you make better decisions for your business.
There are many issues you can resolve with QuickBooks Enterprise and one of them is the need for flexibility in your pricing structure. So, here’s how it goes—you may see some customers as more valuable than others, so you might want to give them custom pricing. For instance, you might want to offer discounts for family and friends or high-volume customers. With QuickBooks Enterprise, you can set up customized price levels so that your products are priced differently for various customers. This feature is not available in QuickBooks Pro, Premier or QuickBooks Online, so if you think you’ll benefit from custom pricing, then you need to consider QuickBooks Enterprise.
Customers can now order and purchase online from anywhere and anytime. This gives manufacturing companies more opportunities to increase the throughput of orders and improve the shipping process. For this reason, your accounting software should be able to connect with eCommerce platforms. Enterprise seamlessly integrates with such as Amazon, Shopify, and WooCommerce. With eCommerce integration, each sale return and any changes to your inventory will automatically be recorded in your accounting software, helping you reduce errors and improve operational efficiency.