Small business owners who use QuickBooks Accountant, Retail, Wholesale or Manufacturing editions can operate the bill of materials feature to keep track of stored materials. The bill of materials is a listing of all the items you require to assemble a product or complete a project, including raw materials, purchased parts and other supplies. This means you can use QuickBooks to keep up with stored materials through updating quantities, costs and other information.
Any business that offers manufacturing, or a service that might not be completed in one accounting period, must make use of a work in process (WIP) account to correctly allow for raw materials or labor that is in transit, or in the procedure of being converted from a raw material to a finished product. The WIP applies mostly to businesses that are in continuous production of product, and not businesses that make product to order.
