Quickbooks and inventory

[sfav8r]

We currently enter our materials invoices into quickbooks as a lump sum. For example, if we have an invoice with 20 items totaling $482, we just enter the total and apply it to whatever job it is for. We are considering changing this. My question is, if you're going to enter every item, what do you use for an item number? If we use the same item# as our main supplier, it would make entering the items easy, but then what if we swing by Big Box and buy the same item from them? As far as we are concerned, a 10' piece of 1/2" EMT is the same thing regardless of where we bought it. but the computer would consider it a completely separate item if we used a different number.

What do you guys do? Is there a materials database for electrical contractors we could start with? We already use TurboBid for our estimates, I don't think there is a way to utilize that database though.

Thanks

 

[wireguru]

the way I do it (not necessarily the best, but it works) is give the items a part number that you can figure out what it is, and add a code in it for the manufacturer. For examble 1/2in EMT from Allied would be EMT-1/2-A. Black 1/2 EMT from Allied would be EMT-1/2-A-BK.

Adding the individual items in inventory instead of the material invoice is helpful as it puts a dollar value on the material that comes back and sits on the shelf.

 

[e57]

Whats the deal with wanting that much info on materials? Right off as waste/loss - track theft - inventory? Too much time on your hands?

 

[e57]

Fishbowl... or some other data/inventory management software to run with the ubiquitous quickbooks...

 

[wireguru]

Whats the deal with wanting that much info on materials? Right off as waste/loss - track theft - inventory? Too much time on your hands?

well, mines not as an EC but rather assembly of cords, adapters, etc. So if I buy a bunch of 50A hubbell twistlocks for a job, i want them in the computer as such, not 'Plugs $1250.93'

 

[e57]

well, mines not as an EC but rather assembly of cords, adapters, etc. So if I buy a bunch of 50A hubbell twistlocks for a job, i want them in the computer as such, not 'Plugs $1250.93'

Now you see most EC's would look at a bunch of invoices marked as a job # and or address then lump them all into a pile... For that job... Then every cost consolidated with THAT JOB. Anything left over goes to the "SHOP" - it's the neither world... If you had time to count it, you're not busy enough IMO.... Need to count it - for monetary reasons - then there is bigger fish to fry... That is if those items are common expendables - like 10' of conduit... If there are a bunch of specialized high dollar items in there coming back like floor access boxes - then there are different problems - like who's ordering them...

Then again maybe that's why I have a garage full of stuff left over from my former business????

 

[kbsparky]

You really need a full-time office staffer to track every item using QB's inventory features.

I keep lots of items in QB for billing purposes, but always classify them as "non-inventory" items. This way, you don't get those annoying "you ain't got any of those left in stock" pop-up notices when trying to bill someone for more than QB thinks you have.

Once you start using inventory, you have to enter in EACH AND EVERY ITEM on each and every ticket, use purchase orders to buy the stuff, and itemize all your bills sent to customers.

Too much time counting the beans, and too much spent paying the bean counters.

 

[satcom]

You really need a full-time office staffer to track every item using QB's inventory features.

I keep lots of items in QB for billing purposes, but always classify them as "non-inventory" items. This way, you don't get those annoying "you ain't got any of those left in stock" pop-up notices when trying to bill someone for more than QB thinks you have.

Once you start using inventory, you have to enter in EACH AND EVERY ITEM on each and every ticket, use purchase orders to buy the stuff, and itemize all your bills sent to customers.

Too much time counting the beans, and too much spent paying the bean counters.

You got that right!

 

[sparky 134]

Another point to consider. When you buy material for a job it's an expense. When you buy material and it sits in the shop you can't write it off as an expense until it's used for a project.

All material I purchase gets billed out to a project. I maintain zero inventory. Even if I don't use everything on a project and it comes back to the shop it still gets billed to a project.

Not the most efficient way to figure the true costs of a project but I've better things to do than count connectors and couplings.

 

[sfav8r]

You really need a full-time office staffer to track every item using QB's inventory features.

I keep lots of items in QB for billing purposes, but always classify them as "non-inventory" items. This way, you don't get those annoying "you ain't got any of those left in stock" pop-up notices when trying to bill someone for more than QB thinks you have.

Once you start using inventory, you have to enter in EACH AND EVERY ITEM on each and every ticket, use purchase orders to buy the stuff, and itemize all your bills sent to customers.

Too much time counting the beans, and too much spent paying the bean counters.

I may have worded my original post in a way that was somewhat misleading. I don't want to inventory every item in the traditional sense. For example I don't need to know how many feet of 12/2NMC I have in stock. I just want to have all the items we use in the computer so that on a given job I know how many feet of 12/2 I used. I believe quickbooks does this with "non-inventory items." So you still have to go through the hassle of entering all the items, but you don't track how many you have. Does anyone else do this or something similar? It seems like we all use a lot of the same materials and once you made a master list, anyone could import it to their version of quickbooks and just adjust the prices as you enter items.

 

[e57]

so that on a given job I know how many feet of 12/2 I used.

I think you're putting too much stock in quickbooks - no pun intended... If that is all you need to do - then a simple spreadsheet in excel itemizing the common items from the invoices to the job would suffice. Then maybe leave a list of things like 'screws' as "Misc."... Just to say match it up against a budget.... Assign the common expendables a cost/unit, then the specialty items their cost, and divide the rest of each invoice as misc. What you end up with is a simple tally if each of those items with a cost associated as a report.

While you could not and should not import it to QB you would have a running reference... QB IMO actually makes it harder to do things like that because they have tasks like these with other software, and partnered with other companies for tasks like this - otherwise they don't get their little hooks into you for it.

FWIW - this reminds me of a situation I had with a former employer of whom I occasionally had to 'justify' large purchases of material to - in order to get the job done.... If only to satisfy his inner need to bean count expenditure to see where he was hemorrhaging money - much of which was done counting beans IMO... Some sort of addiction?!?

Anyway here are two examples - see attached: One is to justify an order for 8K' of QED shade wire, the other for 30 rolls of 12/2 for the same Homeworks job... In both cases I originally wanted 8 1000' rolls which was justified in both instances - but this person could never wrap their brain around the efficiency of large rolls of wire in long multiple run pulls... The shade wire one he showed up during the pull of all this to say 'I had too many people pulling it', and that it was not efficient.... So I went back and added a few more equations to further justify that... I don't know why you want to know how much you spend on wire per job.... But - anyway the two examples are estimates of single item material to be used and how a few simple equations on an excel sheet can be used to do that.

 

[hardworkingstiff]

Back in the 90's I ran an installation department for a pump and tank company. The VP and I were in a discussion about material loss and how to best control it. I said:

I believe I lose $10,000 per year in materials. I think this is better than spending $25,000/year on inventory control.

 

[Kdog76]

You really need a full-time office staffer to track every item using QB's inventory features.

I keep lots of items in QB for billing purposes, but always classify them as "non-inventory" items. This way, you don't get those annoying "you ain't got any of those left in stock" pop-up notices when trying to bill someone for more than QB thinks you have.

Once you start using inventory, you have to enter in EACH AND EVERY ITEM on each and every ticket, use purchase orders to buy the stuff, and itemize all your bills sent to customers.

Too much time counting the beans, and too much spent paying the bean counters.

I've been using QB for 2 years. I don't have an inventory. That's why.

 

[dduffee260]

We keep an inventory in Quickbooks. We have Quickbooks Enterprise because the basic QB became too slow. I think we have 6500 items in our QB list. It has been an ongoing thing for about 10 years now. We have to adjust and correct it here and there.

The reason we use the items list is so we can charge for each and every item we sell. Some people want an itemized list of materials when you give a price, bid, estimate or invoice. We have EMT conduit just listed as 1/2" EMT, 3/4" EMT, 1" EMT and so on. The same with PVC, Rigid, IMC and so on. The basic materials looks well, when you get to devices, light fixtures and such it gets kind of tricky. We have to adjust the inventory on hand every year at tax time. It is not really that big of a deal. We do not track each and every item though like a retail store would. It is impossible to do with our business.

This took quite a bit of time at first to set up, just like an estimating program takes time to set up. It pays off in the long run.

 

[George Stolz]

Some people want an itemized list of materials when you give a price, bid, estimate or invoice.

Rain on them.

 

[cadpoint]

...
It is impossible to do with our business.

This took quite a bit of time at first to set up, just like an estimating program takes time to set up. It pays off in the long run.

Did you mean: it's NOT impossible... ??

Frankly, I'm glad you made you statement! After reading enough here of how wrong everything is of everyone that thought they knew some business aspect its refreshing to see some business being practiced. Anyone that read the book on wally world would easily see a the reference point.

Sure, this is not a one size fits all world, but there can be a lot said for understanding it.
Sure it's a level of commitment but then again, it is just like anything else, a choice.

 

[sparky=t]

Another point to consider. When you buy material for a job it's an expense. When you buy material and it sits in the shop you can't write it off as an expense until it's used for a project.

All material I purchase gets billed out to a project. I maintain zero inventory. Even if I don't use everything on a project and it comes back to the shop it still gets billed to a project.

Not the most efficient way to figure the true costs of a project but I've better things to do than count connectors and couplings.

that way you don't have to pay inventory tax!!, set up a job and post your material invoices to the job, don't itemize unless it is service and then you can hand generate invoice and enter it later in job you set up as service in quickbooks and apply ivoices to same said job. If all my work is service work I either would not be using quick books or trying to track so much detail

 

[bigjohn67]

Waste of Time

Waste of Time

Keeping Inventory or even tracking it is a total waste of time unless the money you save makes you profit over the person you have to employ to do it.

Simply when you are on a job (small) or service call. Call your supplier and re-order the material you use and mark up the invoice total they give you.

You will then be charging at current rates and keeping your truck stocked at the same time.

Job tracking can be simple..... It's all time and material.

Everyone keeps complicating things.
My business is doing great by keeping things simple.

 

[Power Tech]

I put my material under "job related costs".

Keep track of the inventory and your reward will be to pay taxes on it.

I have none, I buy what I use, and keep track of what material invoices are marked to what jobs.

Inventory is the death of many companies.

 

[Sparky555]

I always look for a way to "keep it simple". If I wanted to keep a hyper-accurate perpetual inventory I'd count everything to start and use bar-code scanning in and out of inventory including from the vans/trucks. IMO it's not worth the effort unless a huge amount of inventory is disappearing and you want to catch the magician.