Have you ever worried about how to easily set up & track inventory in QuickBooks online? Don’t worry about it !! Because here in this guide we have everything explained about how to easily tracking inventory.
So whether you just buy some items that you resell to your clients or customers or simply make the products that you sell to your customers. In such a type of case, you should always know that what your item cost is, what you simply sell the item for and how much you just have on-hand. And by tracking inventory in QuickBooks online, you can easily do all of these things and many more.
Why Tracking Inventory Is Important: You Should Know
Tracking your inventory will simply help you to stay on the top of what you have in stock so that you can always make sure you can easily fulfill any type of pending or upcoming customer orders. And with this, it will also help you to easily decide whether you are making money or just losing money on each product. So that you can simply determine if it’s worth it to continue to sell an item or simply drop it from your list completely.
Some Benefits of Tracking Inventory In QuickBooks Online
There are many benefits to set up and also tracking inventory in QuickBooks online. So just have a look:-
- QuickBooks will easily and quickly track the cost of each item that you have sold.
- And everyone can easily track the sale of each product so that you simply know which items are flying off the racks versus the items that are just collecting dust.
- With this, you can easily check to see what your current on-hand quantities are to decide what types of products you have to place an order with your supplier for.
Easily Set Up & Track Inventory In QuickBooks Online
Before we can simply set up our inventory in QuickBooks Online, so in that case, we must turn on the inventory tracking amazing and best features. Therefore, here are some easy and instant steps to easily set up inventory in QuickBooks online.
Step 1:- Simply Navigate to Company Preferences
So from the gear icon in the just upper right corner, simply choose the account and settings.
Step 2:- Just navigate to the Sales Tab
In this step, on the left-hand menu, simply click on the sales tab.
Step 3:- Turn on the Inventory Tracking Best Feature
In the third step, just click on the pencil icon which is simply located in the upper right corner. And then simply choose the “On” next to “easily Track inventory quantity on hand”. And after that simply click on the Done button which will be just located at the bottom of the screen to simply save all changes.
Step 4:- Now Navigate to the Services and Products List
In this easy step, simply click on the gear icon in the just upper right corner. And then simply choose the Services and Products directly below the List column.
Step 5:- Simply Create a New Inventory Item in QuickBooks
In the fifth step, just click on the “New” button.
Step 6:- Now Choose the Item Type
In this step, simply on the next screen, you should just see the type of items that you can simply set up.
Step 7:- Simply Enter the Complete Information for the New Item
Name:- This is the most important and required field. Simply enter the name of the item in this field. And one thing you should know that this field is for your internal purposes only. You will have a chance to enter a unique or different name/description for suppliers and also for customers.
Picture:- This is an arbitrary/optional field to simply upload a picture of the item in this field if relevant.
SKU:- This is an also optional field. Just enter the SKU for the item in this field, if appropriate. Hence, an SKU is a unique and the best number that is simply used to complete identify a product.
Category:- Simply you can group similar services and also products by just setting up categories.
Initial Quantity on Hand:- So everyone, this is the important and a required field. Always be sure that you have an exact/accurate inventory count of each item before you simply set it up in QuickBooks online.
And once you just save and simply close out of this screen. So in such type of case, the quantity field will be just grayed out and you will have to simply enter an inventory adjustment to just update the quantity.
As of Date:- This is also a required and an important field. So for this, just enter the date that you want to start tracking this item’s quantity on hand.
Reorder Point:- This is optional and also a free field. Simply enter the minimum quantity that you want to have on hand. And once you just reach this quantity, in that case, QuickBooks accounting software will simply send you a notification that it is time to reorder this item.
Inventory Asset Account:- This is the most necessary field. And it is automatically populated by QuickBooks software. However, if you would like to simply and quickly track your inventory using another different account, you can do so.
Sales Information:- In this field, simply enter the description that you would like to just shows on invoices and sales receipts that you send to your suppliers and customers.
Sales Rate/Price:- Just enter the price that you simply sell the item for in this field. And if your sales price changes with each supplier and customer. In that case, you can just leave this field blank and simply fill it out directly on the customer sales/invoice receipt.
Income Account:- This is a required and important field. In this field, simply enter the account that you would like to just use to track all types of sales for this item.
Purchasing Complete Information:- So this field is only required if you simply plan to generate purchase orders. Otherwise, you can just leave it blank. Simply enter the complete description that you would like to simply show on purchase orders.
Cost:- Just enter the amount that you simply paid for the item.
Expense Account:- This is the most necessary field. And it is automatically populated by QuickBooks software. With this, it is the account that will be used to quickly track the complete cost of items once you have sold them. You can just a simple click on the dropdown to simply choose another different account to easily track your costs or set up a new one.
Step 8:- Simply Review the List of Services & Products Report
So once you have simply set up all of your inventory items, so you can easily run a Service/Products list report in QuickBooks Online.
- So from the QuickBooks homepage, simply click on the Reports which is just located on the left menu bar.
- After that just click on All Reports.
- And then below the Services/Products List, so simply click on the Run button.
- At last, you should simply see a report similar to the one.
That’ all about this article. Hopefully, you all like this guide about easily set up and track inventory in QuickBooks online. And thank you so much for visiting our website. We are always ready to help you with any of your issues or queries related to this and every topic of QuickBooks. We feel very happy helping you, and you are always most welcome over here on this platform.