We Are Here to Help

You may not need to hire a professional, but you still have an occasional question. We hope we can save you the cost of consulting with an accountant or other professional for these simple, intermittent issues.

Send us your question today - we would love to help.

The information is not meant as tax or legal advice. Please verify all information with your tax or legal professional.

Thursday, December 17, 2009

Quickbooks Inventory Feature

Tricky, tricky, tricky. There is so much to know about how to use Quickbooks for inventory tracking and there are so many ways that you can easily end up with an incorrect inventory count and value.

First and foremost, you only need to use the Quickbooks inventory feature if you keep items in stock that you buy and hold. If you sell product to your customers but buy it only at the time you sell it and only at the exact quantities that you sell it at, use the "non inventory part" classification in your item list.

Second, DO NOT adjust the value of your inventory until you have corrected your physical count first. Need to know how to do that? just post a comment and I'll respond.

Third, record your inventory purchases exactly the way you sell them. In other words, if you buy you inventory stock in bulk such as 1 case, or 1 pack, be sure you invoice your customers in the same way. Do not record that you have received 1 case (of 12 pieces) and then invoice you customer by the piece. If you sell the item by individual piece that is how you must record that you have purchased it. If your supplier only sells in multiple packs, but bills you by single such as case, box, pack etc., be sure you put the entry into your Quickbooks based on your sale method.

Whenever possible be sure to record the receipt of your inventory prior to recording the sale to your client. The goal is not to sell product if your inventory quantities show that you don't have enough stock to fill a sales order or invoice. You can use the purchase order and item receipt features in the Vendor transactions to add this inventory prior to receiving the bill from your supplier.

Fourth, the Quickbooks inventory feature works when you are buying and selling the same product over and over. Quickbooks Premier and Enterprise allow for recording inventory parts that can be assembled into another sellable product.

Be sure to understand this feature before you begin using it. Start with a few items that you can work with to fully understand how to do all of your entries before you create a large inventory list.

In some cases, the Quickbooks inventory feature is simply not the best choice. There are several choices in add-on compatible software that might be more suitable to certain types of businesses carrying inventory in stock.

This material is for informational purposes only and not intended and financial, legal or tax advice. Please consult your finance, legal or tax professional to confirm the accuracy of all information. Quickbooks is a registered product of Intuit.

No comments:

Post a Comment