📖 How It Works - Explained Simply
This system helps you track metal fabrication materials (and potentially hardware) that you store in your yard. It knows what you bought, what's in stock, who took what for which job, and automatically sends that cost info to your accounting system.
🎬 A Day in the Life: Complete Story
Let's follow the complete journey of steel materials from the moment you decide to buy them, all the way to job costing. This is the full picture of how everything connects.
The Complete Journey
0The Purchase is Created
Your project manager needs steel for the Downtown Office Complex job. She creates a purchase order for materials:
Two ways this can happen:
Option A: Created in Knowify
- PM logs into Knowify
- Creates PO #12845 for Downtown Office job
- Adds line items:
- 100x 1.5" Square Tube HSS @ $45 = $4,500
- Sends PO to Metro Steel Supply
- Knowify automatically syncs this PO to QuickBooks (their built-in integration)
Option B: Created directly in QuickBooks
- PM logs into QuickBooks Online
- Creates Purchase Order #12845
- Adds line items:
- 100x 1.5" Square Tube HSS @ $45 = $4,500
- Vendor: Metro Steel Supply
- Sends PO to vendor
🔑 Key Point: No matter which system creates the PO (Knowify or QuickBooks), it ends up in QuickBooks. This is why your inventory system pulls from QuickBooks - it's the single source of truth where all purchases eventually live.
The PO is sent to Metro Steel Supply, and we wait for delivery...
1System Finds the Purchase (Automatically)
Every 4-6 hours, your inventory system checks QuickBooks for new purchases. It sees PO #12845 and thinks "This looks like inventory material!" because:
- The product name contains "HSS" and "Square Tube" (inventory keywords)
- Metro Steel Supply is a known material vendor
- The purchase was tagged with the "Inventory Materials" class
The system adds it to the admin's "Review Queue" with a note: "90% confidence this is yard inventory"
⏰ Timeline: The PO was created Monday morning. The automated sync runs Monday afternoon and flags it for review. The material hasn't even been delivered yet - but the system is already ready to track it!
👨💼 What the Admin Sees (Step 1.5)
Admin Dashboard - Pending Imports
✓ [85%] PO #12846 - 200ft Rebar - ABC Supply - $1,200
☐ [45%] PO #12847 - Office Supplies - Staples - $85
Justice (admin) reviews the flagged purchases and checks the boxes for the square tube and rebar, then clicks "Import to Inventory". The office supplies stay in QuickBooks but won't be tracked in the yard.
Now these POs are "approved for receiving" - when the materials arrive, Michael will see them in his "Pending Receipt" list and can log them in.
2Square Tube Arrives at the Yard
A few days later, the delivery truck shows up with 100 pieces of 1.5" square tube. Your receiving guy, Michael, opens the inventory system on his computer:
- He sees PO #12845 in the "Pending Receipt" list
- He counts the tubes - all 100 arrived in good condition
- He enters: Quantity Received: 100 and Location: Yard A, Rack 2
- He clicks "Generate QR Code"
The system creates a unique QR code for this batch of square tube and Michael prints it on a weatherproof label, which he attaches to the rack where this material is stored.
🏷️ What the QR Code Contains
(Links to: 100 pcs 1.5" Square Tube, received Jan 15, 2025, cost $45 each, PO #12845)
This QR code is now the "name tag" for this specific batch of square tube. When scanned, the system knows exactly what it is, when you bought it, what it cost, and where it is.
📌 Important Note: For common materials like 1.5" Square Tube that you always stock, you only need to generate the QR code once. Future deliveries of the same material get added to the same inventory item, and the same QR code keeps working. The system tracks multiple batches (for FIFO) behind the scenes.
3Fabricator Needs Material
Two weeks later, your fabricator Antonio is in the shop. He needs 25 pieces of 1.5" square tube for the "Downtown Office Complex" project. He:
- Opens the inventory app on his phone
- Walks to Yard A, Rack 2 where the square tube is stored
- Taps "Scan QR Code" in the app
- Points his phone camera at the QR label on the rack
The app instantly shows:
Available: 100 pieces
Location: Yard A, Rack 2
Cost: $45 per piece (average)
4Fabricator Requests the Pull
Antonio fills out a simple form on his phone:
- Job Name: Downtown Office Complex (he types "Downtown" and it autocompletes)
- Quantity Needed: 25 pieces
- Notes: "For stair railing fabrication" (optional)
He taps "Request Pull" and gets a confirmation: "Your request is pending approval. You'll get a notification when approved."
Admins can decide whether to let fabricator proceed with pulling or wait for approval.
📱 Why the Approval Step?
You don't want workers pulling materials without oversight because:
- They might request more than needed (waste)
- Materials might be reserved for another job
- Admin needs to verify the job name is correct for accounting
- Prevents theft or misuse
It's a safety net, not a roadblock. Most approvals happen within minutes.
5Admin Reviews & Approves
Your office manager, Justice, gets a notification about Antonio's request. She opens her admin dashboard and sees:
Requested by: Antonio (Fabricator)
Material: 1.5" Square Tube (HSS)
Quantity: 25 pieces
Job: Downtown Office Complex
Estimated Cost: $1,125 (25 × $45)
Available in Stock: 100 pieces
Justice verifies the job name is correct and that there's enough material. She clicks "Approve".
6FIFO Magic Happens (Behind the Scenes)
When Justice approves, the system immediately:
- Finds the oldest square tube in inventory (First In, First Out)
- In this case, it's the Metro Steel batch from Jan 15 at $45 each
- Allocates 25 pieces from that batch to Downtown Office Complex
- Updates the available quantity: 100 → 75 pieces remaining
- Records the total cost: 25 × $45 = $1,125
Antonio gets a notification: "Approved! You can pull 25 pieces of 1.5" square tube for Downtown Office."
🤔 Why FIFO Matters
Scenario: What if you bought square tube at different prices over time?
Batch B: 50 pieces @ $48 each (bought Feb 1)
Without FIFO: You might accidentally use the $48 pieces and charge jobs incorrectly.
With FIFO: The system automatically uses Batch A first (oldest), ensuring accurate job costing and preventing old inventory from sitting forever.
7Job Cost Sent to Knowify (Automatically)
Immediately after approval, the system sends the job cost data to Zapier:
"job": "Downtown Office Complex",
"material": "1.5\" Square Tube (HSS)",
"quantity": 25,
"cost": 1125,
"date": "2025-01-29"
}
Zapier receives this and automatically creates a material cost entry in Knowify for the Downtown Office job. Later, Knowify syncs this back to QuickBooks, so your accounting is always up to date.
8Everyone Gets What They Need
Antonio (Fabricator): Got his 25 pieces, can keep fabricating
Justice (Admin): Knows exactly what materials went to which job
Accounting: Job costs are accurate in Knowify and QuickBooks
You (Owner): Complete visibility into yard inventory and job profitability
🔄 Different Scenarios: How the System Adapts
🏗️ Scenario A: Stock Material with QR Code (What We Just Saw)
Material Type: 1.5" Square Tube (HSS) - Always in stock, high-volume usage
How it works:
- QR code generated once when first received
- Same QR code stays on the rack permanently
- New deliveries get added to same inventory item
- Workers scan QR code every time they pull material
- System tracks multiple batches behind the scenes for FIFO
Other materials like this: 2x2 Angle Iron, 3/8" Plate Steel, 1/2" Round Bar, 2" Square Tube, etc.
🎯 Scenario B: Specialty/Niche Material WITHOUT QR Code (Justin's I-Beam Story)
Material Type: W10x49 I-Beams - Purchased for specific job, not kept as stock
The Story:
Your company ordered 8 special I-beams for the Harbor Mall structural retrofit. They arrived, Michael received them (PO #12902, 8 beams @ $320 each), but he didn't generate a QR code because these are one-off beams, not regular stock items.
Two weeks later, Justin (laborer) needs to pull 3 of these beams:
Step 1: Justin opens the inventory app
Step 2: Instead of "Scan QR Code", he taps "Browse Materials"
Step 3: He searches or filters:
- Type: "I-beam" or "W10x49"
- Location: Yard B
- Available items only
Step 4: The app shows:
Available: 8 beams
Location: Yard B, Section 5
Cost: $320 each
PO #12902 (received Jan 28)
Step 5: Justin taps on this item, fills out the pull request:
- Job: Harbor Mall Renovation
- Quantity: 3 beams
Step 6: Submits for approval, same as before!
💡 Key Difference: Justin manually selected the material instead of scanning a QR code. Everything else works exactly the same - approval, FIFO, job costing to Knowify, etc.
When to use this method:
- Specialty beams ordered for specific projects
- Custom-sized materials
- One-time purchases
- Materials that don't justify a permanent QR code
- When QR code is damaged/unreadable
Additional Real-World Scenarios
Scenario 1: Partial Delivery
Problem: You ordered 100 pieces of square tube but only 60 arrived.
Solution: Michael enters "Quantity Received: 60" instead of 100. The system adds these 60 pieces to the existing 1.5" Square Tube inventory (same QR code). When the remaining 40 arrive next week, he receives them the same way - they get added to the same stock item. The system tracks both batches separately for FIFO.
Scenario 2: QR Code is Unreadable
Problem: After 6 months in the yard, weather damaged the QR code label on the square tube rack.
Solution: Antonio taps "Can't Scan QR?" in the app and uses the "Browse Materials" portal. He searches for "1.5 square tube Yard A" and finds it manually. Michael can also print a replacement QR code anytime.
Scenario 3: Worker Requests Too Much
Problem: Antonio requests 100 pieces but the job only needs 25.
Solution: Justice sees the request and clicks "Reject" with a note: "Job spec shows 25 pieces needed, not 100. Please verify quantity and resubmit." Antonio gets the notification, checks his drawings, and resubmits for 25.
Scenario 4: Multiple Batches Needed (Advanced FIFO)
Problem: Antonio needs 90 pieces of square tube, but the oldest batch only has 75 left.
Solution: The FIFO engine automatically pulls 75 from Batch A ($45 each) and 15 from Batch B ($48 each). The job cost calculation is: (75 × $45) + (15 × $48) = $3,375 + $720 = $4,095 total. Justice sees this breakdown before approving.
Scenario 5: First-Time Material (New Stock Item)
Problem: You just started stocking 2" Round Bar for the first time. Michael receives 50 pieces.
Solution: Michael receives it like normal, generates a QR code, and puts it on the new rack. From now on, 2" Round Bar is a permanent stock item with its own QR code. Future deliveries get added to this inventory item.
Scenario 6: Mixed Method - Stock and Specialty Together
Problem: Antonio needs materials for one job: 20 pieces of 1.5" square tube (stock) AND 3 W10x49 I-beams (specialty).
Solution: Antonio makes TWO pull requests:
- Request 1: Scans QR code for square tube, requests 20 pieces
- Request 2: Uses browse portal for I-beams, requests 3 beams
Both go to Justice for approval. She can approve them together or separately. The system sends both costs to Knowify for the same job.
💡 Key Takeaways for Non-Technical People
- Automatic Import: The system watches QuickBooks and suggests what to track
- Two Ways to Pull: QR codes for stock materials, browse portal for specialty items
- QR Codes for Stock: Generated once, reused forever for high-volume materials
- Manual Selection for Specialty: One-off items can be pulled without QR codes
- Mobile First: Workers use their phones, no paperwork
- Admin Approval: Every pull gets reviewed before inventory updates
- FIFO = Fair Costing: Oldest materials get used first, costs stay accurate
- Auto Job Costing: Knowify and QuickBooks stay updated without manual entry
- Audit Trail: You can always see who took what, when, and for which job
❓ Common Questions
Q: How do I decide if a material gets a QR code or not?
A: Simple rule - if you keep it in stock regularly (like 1.5" square tube, angle iron, etc.), generate a QR code.
If it's a one-time specialty item (like custom I-beams), skip the QR code and workers can browse for it.
Q: What if someone takes materials without scanning?
A: The system can't prevent physical theft, but during regular inventory counts you'll notice discrepancies.
The admin can then investigate who had access and adjust the system.
Q: Do workers need training?
A: Minimal. If they can use a phone camera and type a job name, they can use this. Most learn in under 5 minutes.
Q: What if there's no cell service in the yard?
A: The app works offline. It saves pull requests locally and syncs when the worker gets back to WiFi.
Q: How long does approval usually take?
A: Typically 1-15 minutes if admin is at their desk. Urgent requests can be approved in seconds.
Q: Can I change a stock material to non-stock later (or vice versa)?
A: Yes! You can generate QR codes anytime for materials that become regular stock, or remove QR codes
for items you stop stocking regularly. The system is flexible.