Maintaining the proper track record of inventory items in QuickBooks is essential for selling them. QuickBooks Online provides inventory tracking feature to get a clear insight into what’s in your hand, receive notifications to restock the items, and what you buy or sell. Are you in a dilemma regarding how to setup track inventory in QuickBooks Online and couldn’t find any exact match? If yes, this write-up will give you proper step-by-step instructions for managing the inventory seamlessly in QBO.
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Learn How to Setup Track Inventory in QuickBooks Online.
Are you still confused about how to setup track inventory in QuickBooks Online? If the answer is yes, then you are not alone in this situation. This blog’s section will teach you the detailed steps to track inventory smoothly.
First Stage:- Settings of Inventory Tracking Must be Enabled
Before you include the inventory goods in QBO, you must enable inventory tracking in QuickBooks. For this, all you need to do is to implement the instructions as outlined below.
- Initially, navigate to the highlighted Settings menu to begin the process.
- After this, choose the Account and Settings option followed by Sales.
- In the next step, click the Edit option in the Products and Services section.
- Furthermore, verify that you have enabled the “Show Product/Service column on sales forms.”
- You must also check that you have enabled both the “Track Quantity and Price/Rate” and “Track Inventory Quantity on Hand” options.
- Conclude the process by tapping the Save and then Done option.
Second Stage:- Inventory Products Must be Included in QuickBooks
You must add the inventory items after enabling the QuickBooks Online Inventory Tracking. Moreover, you must also include the other products and services you sell in QuickBooks. Doing so will allow the users to include them as the line items with their sales forms.
However, adding inventory, non-inventory, and service time may vary. We have provided clear insight regarding this below; check them out.
Mention the Products for Tracking as a Part of Your Inventory
Are you sick and tired of thinking about how to add inventory in QuickBooks Online? Follow the steps outlined below to include the products for tracking as inventory.
You must first turn on the inventory tracking feature by applying the above-mentioned steps.
Include Your Product’s Name, SKU and Category
- To start the process, navigate to the Get Paid & Pay option.
- Afterwards, select the Products and Services menu and then proceed further.
- Thereon, pick the Name option to include the new product or service and then hit the Inventory option.
- In the next step, mention a Name and SKU regarding what you are tracking.
- Furthermore, hit the category drop-down menu to pick the Category.
Adding Up the Product’s Quantity, Reorder Point, and Inventory Asset Account
- First of all, you must mention the product’s Initial Quantity on Hand. Alongside, you have to add from when you have started tracking that quantity into the column of As of Date.
- Thereon, write down the Reorder Point to get notifications when you need to reorder the stock.
- Finally, click on the Inventory Asset Account dropdown and hit the Inventory Asset. QuickBooks will then utilize this account to keep track of all the products you already have in stock.
Entitle Your Product’s Sales, Tax and Purchasing Details
- Initially, include your product’s description on the Sales form and mention the Sales Price/Rate.
- Afterwards, choose the Income account drop-down menu and then locate the account you use to track down what you sell.
- Thereon, mark the “Inclusive of GST” checkbox, if possible.
- Soon after this, pick the GST drop-down and select the tax rate to be used for an item.
- Furthermore, include your product’s description and Product’s cost.
- In the next step, choose the Cost of Sales option and mark the “Inclusive of Purchase tax” checkbox.
- You must also opt for the applicable purchase tax and pick the Preferred Supplier.
- Finally, hover your cursor over the Save and choose the Close option.
Third Stage:- Maintaining the Track Record Of What You Are Selling
After successfully setting up the inventory products, you can easily monitor when they will sell. There are two different ways to track what you sell, which are as follows.
- The first way is to generate an Invoice if you will pay later by the customers.
- Another way is to include a Sales Receipt if your customer is paying right now.
After making all the necessary deductions, you must have to verify what’s exactly available in hand and what’s on order. To verify it, navigate to the quantity you listed for an item to grasp more details. Thereon, if you have previously set reorder points, QuickBooks will immediately update you if anything is running low. Besides this, if you have already set the Low Stock Alert, QuickBooks will inform you if you need to restock.
Fourth Stage:- Inventory Must be Reloaded
If it is essential to restock the inventory products, QuickBooks will notify you. Soon after this, the users can order inventory in QuickBooks. Thereon, the users can monitor what they have obtained from the suppliers and what’s already in order. After doing this, you will notice that the quantity will eventually begin to fluctuate in terms of the quantity you obtain from the vendors.
Fifth Stage:- Usage of the Reports For Monitoring Your Inventory’s Status
In the last stage, you can use the Reports to look at various details, including the best seller, cost of goods, what’s in hand, etc. For using the reports for reviewing the QuickBooks Inventory Management performance and its status, apply the procedure below.
1. Check Your Best Sellers:-
You first navigate to the “Sales and Customers” group of reports and then move further by running these reports.
- To verify the total sales for every product and service, pick the Sales by Product/Service Summary.
- Conversely, to verify the sales transaction by Product or service, go for the Sales by Product/Service Detail option.
2. Monitor What’s in Stock:-
Initially, you must move to the “Sales and Customers” group of reports and then run these reports to get the details regarding what’s in hand.
- To know the quantity in hand, value, or average cost, go for Inventory Valuation Summary.
- On the other side, hit the Inventory Valuation Detail to check transactions for every inventory item and how they hamper quantity.
- Then, choose the Stock Take Worksheet to include the physical count to tally the inventory in hand in QuickBooks.
Related Page: How To Reconcile in QuickBooks Online
Drawing to A Conclusion!!
The procedure to setup track inventory in QuickBooks Online is easier if proper steps are used. We assure you that now you can easily set and track the inventory items to monitor what you sell easily. However, if you find any issues while tracking inventory, feel free to contact our highly-trained QuickBooks professionals via live chat or email support. They will offer you incredible tips to come out of the issue easily.