QuickBooks is a very useful software which is used for accounting and financial management in small and large business organizations. It has made the business task of the companies very easier and saves a lot of productive time. Inventory management is one of the significant features of QuickBooks. It helps you to track the cost of goods sold, Quantity of goods sold and the revenue generated by goods sold. Here we are going to discuss How Does QuickBooks Track Inventory along with the inventory setup, its benefits, and management. For more information, you can directly contact to QuickBooks Support Phone Number +1888-529-1015.
Important Point Of QuickBooks Inventory
- The value of a product in your books is the amount that you paid to purchase it.
- The purchase of a product will increase the value in Inventory Asset Account and the number of units in inventory.
- The sale of a product will decrease the value in Inventory Asset Account and the number of units in inventory.
- Recording in sales also increases the Cost Of Goods Sold Account by the original cost of the product.
Types Of Inventory Items To Tracks
- Inventory items- The items that you buy and sell and that you manage in quantities.
- Non-inventory items- the items that you buy and sell but do not manage in quantities.
- Services-The services that you provide to your customer.
- Bundle-The collection of product and/or services that you offer to your customers.
- The default items list in the QuickBooks cannot be changed to an inventory item type.
- Items categorized as inventory cannot be changed.
How To Enable Inventory Tracking?
The method to enable inventory tracking is very easy. If you have the quantity in hand, then you can turn on the inventory tracking or import the list of product or services in Excel/CSV file directly into the QuickBooks online.
- Select the Setting icon on the toolbar.
- Choose Account and Settings (or Company Settings) Under Your Company tab.
- Select Sales from the left sidebar.
- Click on the pencil next to Products and services and mark the option Track inventory quantity on hand. (Note: This will allow the new item type called Inventory item when selecting New under Products and Services.)
- Select Save.
How To Create Inventory Item?
Step 1: Open Inventory Type
- Select the Gear icon on the Toolbar.
- Under Lists, select Products and Services.
- Select New.
- Choose Inventory as the type.
Step 2: Create an Item
- Type the name of product or service and update details like SKU, image(Optional. Note that SKU will print if you are using the Airy form template.
- Add a category in the category drop-down.
- Give details of the initial quantity of products.
- Enter the date you want to start tracking of products’ quantity in the As of date field (Note: Remember that you cannot save a transaction with an inventory item in QuickBooks if the date comes before the as of date.)
- Put the minimum quantity of inventory item in the Record point field. It’s optional.
- Choose or Add an Asset account from the Inventory asset account drop-down and fill the following optional fields:
- Sales information
- Sales price/rate
- Purchasing information
- In the Income account field, click Sales of Product
- In the Expense account field, click Cost of Goods
- Click Save and then Close.
Note: Repeat the process to add all product to the inventory.
Technical Help For Inventory Tracking
With the help of the above methods, you can enable and create inventory in QuickBooks. If you need any assistance in performing the above steps, you can call QuickBooks Enterprise Support Phone Number +1888-529-1015. Our technical advisors are available round the clock to assist you.