Inventory in QuickBooks
In QuickBooks, you can track inventory by using the “Inventory Center” or by setting up individual inventory items in the “Item List”.
The Inventory Center allows you to see the current quantities of your inventory items, as well as any recent inventory transactions, such as purchases or sales. You can also use the Inventory Center to adjust the quantities of your inventory items, create assembly items, and generate reports related to your inventory. QuickBooks is a powerful accounting software that can help you manage your finances, track expenses, and stay organized.
You can set up individual inventory items in the Item List. Each item can have a unique name, description, and cost. Additionally, you can assign an item to an income account, a cogs account, an asset account, or a tracking account. You can also set an item to non-inventory, non-billable, or not taxable.
Additionally, you can choose to track the inventory in the advanced mode which enables the following:
-Tracking inventory quantities and values.
-Keeping track of inventory assemblies.
-Automatic adjustment of inventory costs.
-And, generating inventory reports.
You can also customize inventory reports to view specific information, such as the value of your inventory at a particular date, the total cost of goods sold, and the quantity and value of items that have been sold or purchased during a specific period.
In QuickBooks, you can turn off advanced inventory by going through the following steps:
- Go to the “Lists” menu and select “Inventory Item List”.
- Select the inventory item that you want to turn off advanced inventory for, and then click on “Edit Item” from the “Item” menu.
- On the “Item Information” window, go to the “Inventory” tab.
- Uncheck the “This is a stock item” box, and then click “OK” to save the changes.
- Repeat steps 2-4 for each inventory item that you want to turn off advanced inventory for.
Note: Turning off advanced inventory will remove all existing inventory quantities and cost information for that item, so you will need to re-enter the quantities and costs manually if you want to use that information again.
Also, be aware that turning off advanced inventory can have a substantial impact on your financial records. It may cause inaccuracies in your financial statements such as your balance sheet, income statement, and various reports.
It’s always advisable to consult an accountant or professional to give you advice regarding this before you take any steps
The benefits of advance inventory in Quickbooks
The advanced inventory feature in QuickBooks provides several benefits for businesses that sell physical goods:
- Accurate inventory tracking: With advanced inventory, you can track the quantity and value of your inventory items, as well as their costs, so you always know how much inventory you have on hand and at what cost.
- Improved forecasting: The ability to track inventory quantities and costs can help you forecast future inventory needs more accurately, allowing you to make informed decisions about purchasing, pricing, and sales.
- More efficient ordering: With accurate inventory tracking, you can ensure that you always have the right amount of inventory on hand without overstocking or running out of stock.
- Better cost management: Advanced inventory allows you to automatically adjust the cost of your inventory items based on purchase prices and other costs, which can help you manage your costs more efficiently.
- Detailed reports: Advanced inventory provides several detailed reports that you can use to analyze your inventory levels, costs, and sales, which can help you identify trends and make better decisions.
- Improved decision-making: With all the information that advanced inventory provides, You can make more informed decisions about your inventory management, purchasing, pricing, and sales.
It’s always advisable to consult an accountant or professional to give you advice regarding this before you take any steps, since this may vary depending on your business type and structure.
The disadvantage of advanced inventory in Quickbooks
While the advanced inventory feature in QuickBooks can provide many benefits for businesses that sell physical goods, it also has some potential drawbacks:
- Setup time: Setting up and configuring the advanced inventory feature in QuickBooks can be time-consuming, particularly if you have a large number of inventory items.
- Data entry: With advanced inventory, you need to enter detailed information about each inventory item, such as its cost and quantity, which can be tedious and time-consuming.
- Complexity: The advanced inventory feature in QuickBooks can be complex, especially for users who are not familiar with inventory management and accounting principles. This can make it difficult to navigate and use the feature effectively.
- Extra cost: Some versions of Quickbooks don’t include the advanced inventory feature and you may need to purchase additional licenses or upgrade to a more expensive version.
- More data to manage: Maintaining detailed inventory information can require a significant investment in time and resources, and this data can become quite extensive if you have a lot of inventory items.
- Dependency: Because advanced inventory relies on accurate data entry, it can be difficult to rely on that data if the data entry is not accurate or updated. This can lead to inaccuracies in inventory quantities, costs, and other information that is used to make important business decisions.
How to Turn Off Multiple inventory Locations?
To turn off multiple inventory locations in QuickBooks, you can follow these steps:
- Go to the “Lists” menu and select “Inventory Site List”.
- Select the inventory site that you want to turn off, and then click on “Edit Site” from the “Site” menu.
- On the “Edit Site” window, uncheck the “Active” box.
- Click “OK” to save the changes.
- Repeat steps 2-4 for each inventory location that you want to turn off.
Note: Turning off multiple inventory locations will remove all existing inventory quantities and cost information for that location, so you will need to re-enter the quantities and costs manually if you want to use that information again.
Additionally, you may also want to review your inventory items and make sure they’re set to track inventory at one location only.