Inventory On QuickBooks: How To Setup And Track It?

So, do you want to learn how to track and set up inventory on QuickBooks? As we know, inventory and record keeping are similar terms. It defines the list of goods you have available for your customers.

We know that maintaining and tracking such records is not an easy task. But still, you have to do it because of how important it is for your business. Making a mistake while managing it can highly affect your future investments. Furthermore, your business development highly depends on this factor.

So, is there a good way to track and manage the inventory? With this QuickBooks inventory guide, you will learn how to track inventory on QuickBooks and how to set up inventory on QB.

How Can QuickBooks Help With Tracking Inventory?

QuickBooks offers various features that assist with tracking, maintaining, and managing inventory. Moreover, you can even get alerts on it regarding restocking the inventories and creating purchasing orders.

With QuickBooks, the chances of errors while tracking and managing inventory becomes almost zero. It is a smart accounting tool with many features to make your life easy.

Steps To Track And Set Up Inventory On QuickBooks

Generally, this feature remains inactive when you install it for the first time. So, to use it for your business, you first have to enable it. So, how will you enable it?

Follow these steps to enable this amazing feature in QuickBooks:

Step 1: Switching On The Tracking Setting For Inventory

Firstly, log into your QuickBooks account.
Now, from the dashboard, navigate to the Setting tab.
Next, click on the Gear icon.
After that, choose the Account and Settings option.
From there, tap on the Sales button.
Now, select the Edit option from the Products and Services section.
Next, tap the Turn on Show Product/Services tab from the sales forms section.
After that, tap on the “Turn on both Track quantity and price/rate and Track inventory quantity on hand.”
Lastly, click the Save icon and press the Done button.

Step 2: Adding The Inventory Products In QuickBooks

In this step, you have to add in the inventory items. By doing this, you can easily track all your products or services, which you will see in QuickBooks.

Make sure you do this before adding inventory products in QB:

Firstly, you need to turn on your Inventory Tracking.
After that, add the product’s category, name, and SKU.

So, since you have completed this process, let’s see how to add inventory products:

Firstly, head to the Get Paid & Pay tab.
After that, choose the Products and Services option.
Next, click on either New or Add a product or service.
Now, click on the Inventory section.
After that, enter the Name, Category, and SKU for the product you are tracking.
Next, choose the unit from the Unit dropdown button.
Lastly, pick the category from the Category dropdown button.

With that, let’s understand the steps for adding the product’s inventory asset account, quantity, and reorder.

Firstly, add the product’s Initial quantity on hand.
After that, enter the date you initialized, tracking the quantity in the As of Date section.
Now add in a Reorder Point in order to receive notifications.
Next, tap the Inventory Asset Account from the dropdown button.
Lastly, choose the Inventory Asset option.

QuickBooks will use this accounting for tracking the product cost for all the products you have stored in the stock.

Adding The Product’s Sales, Purchasing, And Tax Details

In the next step of adding inventory products in QB, let’s study how to add the product’s sales, purchasing, and tax details.

Firstly, add the description of the product to the sales forms.
Next, enter the “Unit” price.
After that, enter the “Sales price or rate.
Now, press the “Income Account” from the dropdown button.
From there, search for the account you currently use for tracking your sales record.
Now, click on the “Inclusive of tax” check box if you are eligible for it.
Next, choose the “Sales Tax Category” from the dropdown button.
Specify the order you want the item to get taxed.
Now, enter the description of the products on the purchase forms.
Next, enter the product’s cost.
After that, click on the “Expense account” from the dropdown button,
From there, press the “Cost of Goods Sold” option.
Press the “Inclusive of purchase tax” check box if you are applicable.
Now, press the “Purchase Tax” dropdown button.
And now, click on the applicable purchase tax.
Enter the “Reverse-Charge” amount.
Make a choice for the vendor you like.
Next, press Advance Options to proceed.
Continue by entering the category or SKU for the good you are tracking.
Lastly, tap on the “Save and close” button.

Step 3: Keeping Track Of The Selling Inventory

After setting up the inventory products, you get the option to track them whenever they sell. You can use two methods to track this selling process:

The first way is to create an invoice if you get the product purchase payment later.
The second is adding the sales receipt in case the customer pays for the product instantly.

With that, QuickBooks will decrease what is on hand with the amount specified by the invoice or sales receipt.

Step 4: Restocking The Inventory

With QuickBooks, you also receive alerts regarding restocking based on the alert you set up in the old steps. An individual can easily restock or order inventory in QuickBooks.

Furthermore, you can track the orders received from the suppliers and things that are still in the order process. Doing this will let QuickBooks automatically update the quantity on hand.

Step 5: Checking The Status Of Inventory On QB Using Reports

In the last step of this complete process, a person can also get access to see updated reports. This helps with checking the best client, what’s on hand, distributors, cost of products, etc.

Conclusion

Setting up and tracking inventory on QuickBooks is a straightforward and convenient process. By doing this, a person can use their saved time on other things to better enhance their business.

If you are facing any problems while tracking your inventory on QB, contact MWJ Consultancy. We offer expert services for various accounting and business software such as QuickBooks, Turbo Tax, Sage, Xero, etc.

Dial +44-800-520-0027 or visit our site to fill out our form to connect with a professional technician.

Frequently Asked Questions

How Do Quickbooks Work For Inventory?

QuickBooks can tell you the time when restocking is needed. Ordering inventory from QuickBooks is quite easy. You can track the things you get from vendors and stuff still on order. The quantity on hand increases automatically when these numbers increase by using QuickBooks inventory.

How To Add Inventory On QB?

If you want to add inventory on QB, follow these steps mentioned below:

Head to the List tab from the top menu.
Next, select the Item List option to proceed.
From there, tap the Arrow beside the item.
Then, select the New option to proceed.
After that, click on the Type button and select the Inventory option.
Enter all the required info.
Finally, tap OK to confirm your actions.

Does Quickbooks Do Inventory Control?

Yes, QB Desktop Enterprise provides the warehouse inventory management feature. These features can track storage and the movement of materials and products. Various features like lot tracking, serial number tracking, and bin tracking make the process of locating inventory quite easy and accessible.