In current QuickBooks Online, inventory accounting features are very limited.
Inventory feature is available in QuickBooks Online Plus only. Inventory feature is not available in QBO Essentials or Simple Start.
To turn on Inventory tracking feature:
- Click on the Company Gear on the upper right hand corner and select Company Settings
- Click on the Sales Tab on the left hand side
- Edit the Products and Services section by clicking on the pencil icon
- Check mark the features you want and click Save button
GO to Company “Gear” (upper right corner) > Select Company Settings > Select Quantity and Price/Rate and Quantity on Hand (Inventory tracking) checkbox under Products and Services
GO to Company “Gear” (upper right corner) > Select Product and Services > Select New
Name = Product Name
Check = Track Quantity on Hand (for inventory items) > I track quantity on hand for this product. This enables inventory cost accounting.
Enter Initial Quantity On Hand
Enter As Of Date
Inventory Asset Account = Inventory Asset
Enter Sales Information (Description on sales forms) > This is what it will show up as description on invoice form
Purchasing Information (Description on purchase forms) > This is what it will show up as description on purchase order form
Price/Rate = Selling price to customer
Cost = price you pay to vendor/supplier to buy this product
Income Account = Select income account from chart of accounts > This is what will show up as income category in your P & L
Expense Account = Cost of goods sold
Is Taxable box = select if it’s taxable and need to bill sales tax to customer invoice
Save
See attached screenshot photos below for reference.
Also check out tutorial video regarding adding beginning inventory in QuickBooks Online Plus.
For detailed instructional guide regarding these topics, you can also checkout our YouTube videos published for new QuickBooks Online users.
QuickBooks Online (QBO) Tutorial – Customer Invoice, Sales Receipt, Receive Payment, Bank Deposit
New QuickBooks Online Plus – How to enter various expenses in new QBO?
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