The quick answer
Save the assembly build and open its GL Impact subtab. The finished assembly is debited the value of the build. Each stocked part is credited to its own inventory account, and the labor line is credited to the expense account named on the labor item. In this example 105.20 is debited to finished goods and credited as 49.60 and 11.60 to inventory and 44.00 to direct labor.
The screenshots show sample data. Person and operating-company names are fictional, and the build number, accounts, quantities and amounts are examples. Use your own records and values when following the steps.
Before you start
You need Assembly Items and Advanced Bill of Materials. The bill of materials revision needs a labor line backed by an item that is not stocked, such as an Other Charge, Service or Non-inventory item. For that labor to carry a cost, set the item up as a purchase item with a purchase price and an expense account on its Accounting subtab. The parts need stock at the location you build in.
This example is a standalone assembly build with no work order and no WIP. A work order with WIP can take labor from its routing and manufacturing charges and post through WIP transactions such as issue, completion and close. The labor source and posting flow depend on your configuration, so read those transactions instead. Several details depend on the account: whether Subsidiary and Location come filled in, which accounts your items use, and how your costing method values the build. The account numbers in the screenshots are examples.
01. Look at the labor line on the revision
Open Gift Set Rev A, the revision of GS-300 Gift Set BOM. On Components, MUG-12 Stoneware Mug has BOM Quantity 2, BOX-04 Gift Box has 1 and LAB-GS Gift Set Packing Labor has 0.25. All three lines are at Component Yield 100.0%. The labor line has no Units. NetSuite treats 0.25 as a plain item quantity and multiplies it by the build quantity. This example uses it as hours of labor per set, which is a modeling choice that does not create time tracking or a labor hours record.
02. Open a new build and enter the quantity
From the Transactions menu, point to Manufacturing and choose Build Assemblies. A new Assembly Build opens with Subsidiary Larkspur US and Location Eastgate Workshop filled in. In Assembly, choose GS-300 Stoneware Mug Gift Set. Bill of Materials fills with GS-300 Gift Set BOM, Bill of Materials Revision with Gift Set Rev A, and Buildable Quantity reads 50.
Type 8 in Quantity to Build and press Tab. The mug line reads 16 with Quantity On Hand 100, and the box line reads 8 with 64. The labor line reads 2 and shows no Quantity On Hand and no Inventory Detail icon, because there is no stock to count or assign. Buildable Quantity is calculated from the availability of the stocked components, and the labor line has no stock figure to limit it here. Other constraints at your location, such as the boxes, can still lower it, and your item type and account setup can change the calculation.
Projected Value reads 105.20. In this example it is the parts and the labor at their item costs: 16 mugs at 3.10 is 49.60, 8 boxes at 1.45 is 11.60, and 2 hours of labor at 22.00 is 44.00. In a standalone build like this one the labor cost is based on the item's purchase price, so check the item. Do not assume the same for routing or WIP labor. Projected Value is an estimate. Your costing method and cost layers decide what the saved build posts, and the saved build's GL Impact is the figure to trust.
03. Save the build
Click Save. NetSuite confirms Transaction successfully Saved and shows Assembly Build ASSYB246 for 8 sets at Eastgate Workshop with Projected Value 105.20. Before you save, check the revision, build date, subsidiary, location and units. If a stocked part or the finished assembly is lot, serial, bin or status tracked, its inventory detail may be required, and it applies to the assembly and each part separately. The sample items are not tracked, so Save needs nothing extra here.
Open the Components subtab. The mug and box lines each have an Inventory Detail icon. The labor line reads 2 and has none.
04. Read the GL Impact
Click the GL Impact subtab. 1320 Inventory : Finished Goods is debited 105.20. 1300 Inventory : Raw Materials is credited 49.60 and 1310 Inventory : Packaging Supplies is credited 11.60, one for each part. 5030 Manufacturing Expenses Allocated : Direct Labor is credited 44.00 for the labor. Total debits equal total credits at 105.20. The result depends on the item subtype, account setup, costing and the manufacturing features your account uses.
The account numbers and names here are examples. The labor credit goes to the expense account set on the labor item's Accounting subtab, and it is an applied-cost entry that puts the labor into the cost of the finished sets. It does not record the labor itself, so the real cost, such as payroll or a vendor bill, is booked separately.
Check the result
- The labor line has BOM Quantity 0.25 and no Units on Gift Set Rev A.
- For 8 sets the labor line reads 2 and shows no Quantity On Hand and no Inventory Detail icon.
- Projected Value is 105.20, and saved ASSYB246 lists the same three lines.
- GL Impact debits 1320 Inventory : Finished Goods 105.20 and credits 49.60 and 11.60 to inventory and 44.00 to Direct Labor.
Common questions
Where does the labor on an assembly build post in the GL?
The labor line is credited to the expense account set on the labor item, and the finished assembly is debited the full value of the build, labor included. In this example 44.00 of the 105.20 debit is matched by a credit to a direct labor account. Your chart of accounts and item setup decide which account that is.
Which account does the labor component credit, and where is it set?
It credits the Expense Account on the labor item's Accounting subtab. The account can be an operating expense, cost of goods sold or an applied-labor account, depending on how your chart of accounts is built. If the build should offset real labor cost that is booked elsewhere, point the item at an account made for that.
Why does the labor line have no Quantity On Hand or Inventory Detail?
A labor item that is not stocked has no inventory to count, assign or move. The line typically shows a quantity and a cost but no stock figure and no Inventory Detail icon, and saving the build moves no stock for it. Check your own form, because what a non-stock line shows can vary.
How does a labor item change Projected Value?
It adds its quantity times the item's rate. Here 2 hours at 22.00 adds 44.00 to 49.60 of mugs and 11.60 of boxes for 105.20. The rate comes from the item's purchase price in a setup like this one. Projected Value is an estimate, and the saved build's GL Impact is the figure to trust.
Why is the finished goods debit larger than my inventory credits?
The difference is usually the non-stock lines. The debit includes the labor, but labor has no inventory account to credit, so its share goes to an expense account. Here the two inventory credits are 61.20 and the labor credit is 44.00, which together equal the 105.20 debit.
Why do my inventory credits show on one line?
When components share an inventory account, NetSuite may show their postings separately or as one combined credit. Here the mugs and boxes use different accounts, so each credit is its own line. Match the credit lines to accounts.
Does a labor component change my inventory quantities?
No stock moves for the labor line. The parts come out of inventory and the finished sets go in. Check the item records if you need the stock figures after the build.
What if I build through a work order with WIP?
A work order with WIP can take labor from its routing and manufacturing charges and post through WIP transactions such as issue, completion and close. The labor source and posting flow depend on your configuration, and this standalone example does not carry over, so read the work order's own transactions in that case.