௹ QuickBooks includes an inventory feature that allows you to keep track of your in-stock items. Additionally, you can keep track of the inventory value after each buy and sale. This functionality was created to fulfill the demands of companies who want to keep track of their inventory in a warehouse. You can also maintain your inventory data up-to-date once you’ve learned how to setup inventory in QuickBooks. Apart from that, you can set reorder reminders for when items reach a certain level of depletion. The below write-up detail you the complete process for how to setup and tracking of your inventory in QuickBooks.
Steps by Steps Procedure: How to Setup and Tracking of Your Inventory in QuickBooks
௹ Now, we’ll talk about how to keep track of inventory in QuickBooks by setting it up using the steps discussed below:
Total Time: 30 minutes
Turn on Inventory Tracking
⇛ Turn on these settings so you can add your inventory if you haven’t already.
▶ In the beginning, select Account and Settings from the Settings menu
▶ Choose from the available sales
▶ In the Products and services section, choose Edit from the drop-down menu
▶ On sales forms, enable the “Show Product/Service column on sales forms” option
▶ After that, track quantity, price/rate, and inventory quantity on hand should all be turned on
▶ In the end, select the “Save” and then “Done” button.
Add Your Inventory Products
௹ You may now enter your inventory goods, as well as any other products or services, into QuickBooks. This makes it simple to add them to your sales forms as line items.
⇛ Inventory, non-inventory, and service items are added in slightly different ways:
⇛ Add products you want to track as part of your inventory
௹ In QuickBooks, enter everything you buy and sell in your inventory. Then, so you don’t have to, let QuickBooks adjust the quantity on hand while you work. It’s simple to maintain inventory in QuickBooks and add products to sales forms once you’ve set it up.
⇛ Add products and services you buy or sell, but don’t track as part of your inventory
▶ To add service items, follow the instructions below. These are the services you provide to your clients. For example, Landscaping or bookkeeping services.
▶ These are items you buy or sell but don’t register as inventory (or can’t). Nuts and bolts are the examples that are commonly used in installations.
▶ Make a bundle: Bundles allow you to combine various products or services into one package. Adding products to a bundle eliminates the need to pick them individually in invoices or receipts.
Please keep in mind that QuickBooks does not maintain quantities for services, non-inventory products, or bundles.
Keep Track of What you Sells
⇛ When you’ve set up all of your inventory products, you’ll be able to follow them as they sell. There are two steps for keeping track of what you sell:
⇛ If you expect to be paid later, create an invoice
▶ First, select the + New button
▶ Next, choose an Invoice
▶ Select a customer from the Customer dropdown menu
▶ Verify that all of their information is correct, particularly their email address
▶ Examine the invoice’s due date
▶ Change the due date in the Terms dropdown if necessary
⇛ Important Tip: The number of days till the payment is due is referred to as the net.
The default due date is 30 days; however you can amend it if necessary.
▶ Select a product or service from the Product/Service column
▶ You can also pick + Add new from the invoice to create a new product or service
▶ Enter a quantity, a rate, and, if necessary, you can change amount
▶ Choose a tax option from the drop-down menu
▶ If you can’t see tax, double-check that you have set up tax
⇛ When you’re finished, you can save or share the invoice in a variety of ways:
▶ Select Save and send the invoice to your customer when you’re ready to send it
▶ Select Save and close to send the invoice later
▶ Select Save to print a printed invoice and then choose Print or Preview from the drop-down menu
▶ Select Save and share a link to send your customer a link to their invoice by SMS or a messenger service
▶ Then choose the Copy link and put it into your SMS or messenger service
▶ Select Save & Share to send your invoice over WhatsApp.
⇛ If your consumer paid cash on the spot, add a cash memo
௹ When a customer pays for products or services at the same time as the sale, use a cash memo.
Use an invoice if you need to bill your customer after the sale has been made.
▶ First, select the + New button
▶ Choose the Cash memo option
▶ From the Customer dropdown, choose the customer
⇛ Note: Select Add a new customer if you haven’t done so already in QuickBooks.
▶ Fill in the selling details, such as the payment method
▶ Fill in the line items for the things and services you sold
▶ When you’re finished, click “Save and Send” to send the cash memo through email.
QuickBooks then subtracts the amount on the invoice or cash memo from what’s on hand.
⇛ Check what’s on hand and what’s on order as your work
௹ While working on an invoice, cash memo, or other sort of transaction, keep track of what you have on hand and what you still need to order. To get more information, simply hover your pointer over the quantity you entered for an item.
QuickBooks will alert you when something is running low if you establish reorder points. If you establish a low stock alert, QuickBooks will notify you when a particular item is running low.
Restock Your Inventory
௹ When it’s time to refill, QuickBooks notifies you. QuickBooks allows you to place orders for inventory. After that, keep note of what you get from vendors and what you still need to order. The quantity on hand instantly increases by the number of goods you receive when you do so.
Use Reports to Check Status of Your Inventory
௹ In the final step, you need to access the reports to instantly view your best sellers including what’s on hand, cost of goods, etc.
⇛ Here’s how to see which reports to run depending on what kind of information you want to see:
▶ In the very first step, go to the Reports section and then select the “Standard” tab
▶ Once you’re there then here’s what you can do.
⇛ See you best sellers
⇛ Navigate to the “Sales and Customers” report group. Then, to see your sales by product and service, run these reports:
▶ Sales by Product/Service Summary: Your total sales for each product and service.
▶ Sales Product/Service Detail: Your sale transactions by product or service.
⇛ Check what’s in your stock
௹ Navigate to the “Sales and Customers” report group. Use these reports to keep track of what you have on hand so you can always provide your customers with what they want.
▶ Inventory Valuation Summary: The quantity on hand, the value, and the average cost for each product are listed in the inventory valuation summary.
▶ Inventory Valuation Detail: Each inventory item’s transactions, as well as how they affect amount on hand, value, and cost.
▶ Physical Inventory Worksheet: Your inventory items, including space for a physical count to compare to the quantity on hand in QuickBooks.
⇛ Check what’s still on order
௹ Go to the reports under the “Expenses and Suppliers” category. After that, run the Open Purchase Order Detail report. This displays how many things are still on backorder and how many you’ve already gotten.
⇛ Customize your reports
௹ You can customize each report to include only the information you require. To change the report date, grouping of information, and more, goes to the top of any report. Select Customize to view all of the adjustments you may make.
௹ We hope the steps discussed above help you to understand How to Setup and Tracking of Your Inventory in QuickBooks. But if in case, if you are still unable to perform these steps or get any issues while performing the steps, then you can directly contact our QuickBooks Pro-Advisors team using QuickBooks Customer Helpdesk.
⟴ A Frequently Asked Questions
How to Keep Track of What’s in Stock and What’s on Backorder While You’re at Work?
௹ While working, you can also verify what’s on hand and what’s still on order. Simply move your pointer over any transaction’s quantity. QuickBooks will notify you if a product is running low on stock if you have set up low stock notifications.
What are the Procedures Involved in Adding Inventory in QuickBooks Desktop?
⇛ Here are the steps to add an inventory item after you’ve turned on the inventory function in QuickBooks Desktop:
▶ Select the Items & Services icon from the QuickBooks Home page
▶ Choose Item from the Item List dialogue box, then New
▶ From the Type drop-down menu, select Inventory Part Under the
⇛ Type window, you’ll see a number of options that must be filled up as follows:
▶ Enter the item identifier in the Item Name/Number section
▶ Unless you’re using QuickBooks Premier or higher, leave the Unit of Measure blank
▶ Fill out the Purchase and Sales Information fields
▶ QuickBooks will now discover the COGS account (Cost of Goods Sold) account automatically
▶ From the Income Accounts section, add the Income account
▶ This account will be used to track the revenue generated by this inventory item
▶ Fill in the remaining fields as needed, and then click on the Ok button.
What are the Types of Inventory Items to Track in QuickBooks?
⇛ There are four different types of inventory items to track in QuickBooks:
▶ Inventories Items: These are the items that you buy or sell and keep track of.
▶ Non-inventories items: Non-inventory items are items that you buy or sell but don’t keep track of, such as the nuts and bolts used in the installation.
▶ Services: These are the products and services that you offer to your customers.
▶ Budget: A budget is a group of products or services that you sell all at once.