QB Issue Resolution:
If you have a significant amount of finished goods on hand then yes it would be much better to use real “inventory accounting” that requires a better version of QB.
However, all the other ingredients and supplies you use in the production will not be part of that inventory and you will continue to use ‘non-inventory’ type items for them, and I also suggest you continue expensing them to COGS (read-on). Add another COG account for ‘supplies used’.
Hopefully you already have an estimate fo how much it cost you to produce each item you sell. At the end of each production batch make an inventory adjustment to create the stock, at the cost you estimated, with the ‘adjustment’ going to COGS-Supplies used
If the total value of the raw materials & supplies on hand is significant than you need to also start accounting for those as Raw Material inventory. That will likely continue to be a separate spreadsheet tally done at the month-end. At month end make a JE to set the RM inventory asset to the right amount, with the offset going to ‘COG – Supplies used’. This posing might be (negative) if RM on hand shrinks.
Resolution for Issue 'Inventory & COGS – Chocolate manufacturing' available: Yes (Solved).
Source: Intuit Community forum.
Inventory & COGS – Chocolate manufacturing: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.Support for Chocolate manufacturing
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