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2 replies

QuickBooks Team
July 22, 2025

We need to ensure your QuickBooks Online Company file is set up for Manufacturing Industry to manage Cost of Sales, MWALIMU.

 

Here's how:

 

  1. Go to the Gear icon and select Account and settings.
  2. Click on the pencil icon in the Company type.
  3. In the Industry dropdown, choose Manufacturing as the industry type.

 

Once done, here's how to set up products made from raw materials:

 

  1. Navigate to the Sales menu and open the Products and Services tab.
  2. Click New, and choose your desired product.
  3. Include the raw materials required for the finished product.
  4. When finished, click Save and Close.

 

The system automatically sets the Income Account to Cost of Sales by default. However, you can customize this by creating and assigning a different income account to match your preferences.

 

To give more information about managing inventory and what reports are available in QuickBooks Online, check out the following articles:

 

 

For more clarification, please reply to the forum.

SIAB
Level 2
July 22, 2025

@MWALIMU-MSHAM 

Consider having a manufacturing app or an inventory management app with the assembly feature to sync with QBO.