Categories
Balance Sheet Chart of Accounts Inventory QuickBooks Online QBO

Account setup for Periodic Inventory basis in QBO

If you’re adopting a “Periodic Inventory” basis, do not select “Inventory as Detail Type” in the Chart of Accounts. Instead, use Other Current Assets for Detail Type and for the Category Type, Purchases as the account name. For the Detail Type, you never want to use “Inventory Asset”, this happens to be default account name designated for Perpetual Inventory tracking in QBO. If you want to switch later, it creates problems.

Periodic Inventory basis account setup

Categories
Inventory QuickBooks Online QBO

QBO Inventory – Follow Easy 3 Steps

QBO inventory is very basic —buy the item and sell the same item. So it is simple as 1-2-3.

  1. Create Products & Services as Inventory type item.
    Key fields to remember:
    a) Quantity of hand = “0”
    b) Inventory asset account = Inventory Asset (always this default account)
    c) Select “Income account” = Income type account
    d) Select “Expense account” = Costs of Good Sold type account
  2. Buy inventory from the Vendors and enter your purchased Inventory items using the Vendor forms (Expense, Check, Bill)
    a) Always use “Item details” tab. Never to use “Category details’ tab to record inventory purchases.
  3. Enter Invoice (or Sales Receipt) form to create a customer sales transaction. Sales transaction journal will do two things in general.
    a) It will record income
    b) It will also pull out inventory item from inventory asset account and post the inventory cost (FIFO) to Cost of Goods Sold account.

If just follow these simple steps, you should be in good shape!

Categories
Inventory QuickBooks Online QBO

Common mistakes to avoid in QuickBooks Online INVENTORY – Initial Quantity on Hand | Inventory Quantity Adjustment

QBO Inventory – Initial Quantity on Hand | Inventory Quantity Adjustment
Categories
Inventory QuickBooks Online QBO

How to apply additional costs to Inventory Items in QuickBooks Online

Adding additional costs like shipping insurance to Inventory Item in QBO

Categories
COGS Inventory QuickBooks Online QBO

Recording Finished Inventory starting with Production Materials and Supplies

Categories
Inventory

How do you record a transaction to Write Off Obsolete Inventory

Categories
Inventory Products & Services

How to make batch inventory stock quantity adjustment after physical count

How to make batch inventory stock quantity adjustment after physical count in QuickBooks Online Inventory

Here is how to make batch adjustment inventory quantity on hand after physical count or just want to make qty adjustment in inventory.

1. Select “Gear’ icon at the top.

2. Select Products and Services under Lists.

3. Select Filters (funnel icon) and filter “Inventory” only and click Apply.

4. Select “All” box (left Name column).

5. It will show “Batch action” on the right hand side.

6. Click on the “Batch Actions” drop-down arrow and select “Adjust Quantity” from the list.

7. It will display pre-filled “Quantity on hand” and “New Qty” columns.

8. Change new quantity as needed.

9. Optional: The default inventory adjustment account in QBO is Inventory Shrinkage account. You can use this account or create a new account if needed to track it separately.

10. Save and close.

You can also drag the items into the order you want.

Categories
Banking Inventory

How To Add Purchased Inventory Items From Banking “For Review” Tab

How to add purchased inventory items from Banking tab? I like to enter SKUs, Qtys of each item in one entry.

Assuming you have QuickBooks Plus Plan, you will first need to ensure that in company settings you turn on the Items table and Purchase orders.
(Gear icon at the top > Your Company > Account and Settings > Expenses > Bills and expenses and Purchase Orders (if needed) > ON).

 

 

First, you will have to manually create a transaction in QBO. You enter an Expense, Check or Bill form (create + sign > Vendors), about halfway down the left side is a title “Item Details” tab, NOT Account details tab. Click that and a table opens where you can select the product/service item code, SKU, Qty, Rate, and Item-Total cost for purchasing inventory.

 

 

Second, you then go back to the Banking tab. You should see MATCH green button for that transaction. Click Match and it will move to QuickBooks register.

 

 

Categories
Conversion Import Desktop Data Inventory QuickBooks QuickBooks Online QuickBooks Online QBO

Guide to importing inventory from QuickBooks Desktop older than 2015

If you have QuickBooks Desktop file older than 2015 with inventory items and try to convert to QBO, read this article first. You will need 2015 or newer version to import inventory properly. They offer you the latest trial version. Click here for trial links. This is for US version only.
Note: Even with this latest version of QBD, you may experience some issues with inventory in QBO. Also, you may want to a 100% physical inventory, and adjust current qty to match in desktop before exporting to QBO. There is no value adjustment in QBO.

See also QuickBooks Help article.
 

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Categories
Chart of Accounts Inventory Journal Entry Sales Receipt

How to track donated inventory stock items by your business in QuickBooks

These are the specific steps you can follow in QuickBooks Online (available in plus plan only) if you are donating or giving away tracked quantity on hand inventory items.

Create ZERO Value Sales Receipt for Inventory Items:
1. From the Home Page screen > click Create (+) Sign (top middle bar) > Customers > Sales Receipt and create a Sales Receipt for the inventory item.
2. Choose a customer (name of donating company). Add new if needed.
3. Select Item Donation as your Payment Method. Add new if needed. Optional.
4. For “Deposit to” field, select Add new and create bank category type account. Name it clearing account. (This will create just a zero dollar transaction. You would not have any actual banking transactions in this bank register).

Screenshot 2016-07-17 16.03.31

 

5. In the Product/Service column, click the drop-down arrow to select the product/service you are donating.
6. Change the Rate of the selected product/service to zero so that the total of the sales receipt is zero.
7. Click Save.

Screenshot 2016-07-17 16.01.32

 

8. Click “More” at the bottom. Select Transaction Journal report. This will give you the original cost of the inventory items you are donating. Print as PDF or select export to excel. Do the same for the Sales Receipt.

Screenshot 2016-07-17 16.01.58

Screenshot 2016-07-17 16.02.07

 

Next, to account for the original cost of the product/service(s) selected, create a Journal Entry to move the cost out of the Cost of Goods Sold account and into the appropriate expense account (for example, Charitable Donations Expense).

To record this:
1. Click Create (+) sign > Other > Journal Entry.
2. In the Account section, choose the expense account used to track charitable contributions (for example, Charitable Donations Expense).

Screenshot 2016-07-17 16.03.09

 

3. Enter the cost of the product/service in the Debit field.
4. On the next line, click the drop-down arrow and select the Cost of Goods Sold (COGS) account for the donation.
5. The cost of the product/service entered in the field above will populate the Credit field.
6. Click Save.
7. Optional. Attachments (bottom left) for the record. Attach Transaction Journal (that gives you how you got the cost of the donated items) and Sales Receipt.

Screenshot 2016-07-17 16.00.01

Screenshot 2016-07-17 15.59.39
 

Our YouTube Tutorial Video: How to track donated inventory stock items by your business in QuickBooks