Heard it will create a mess if initial setup is not proper.
GO to Company Gear (located top right corner)
Select Products and Services under Lists
New screen will pop out
Name = Name of Inventory
Checkbox “I track on hand for this product…..”
IMPORTANT AND COMMON MISTAKE: If you did not checked this box and entered initial quantity on hand (even if it’s zero ’cause it’s new item) and later entered bill or entered check; added inventory purchases will just posted to P&L Expense under Purchases account that is their default account.
Initial Quantity on Hand = enter “0” even if it’s none; enter actual quantity on hand if available (also important, it’s quirky if you have to come back and adjust quantity again)
As of Date = today or when physical inventory was taken
Inventory Asset Account = Inventory Asset (default account)
Sales Information = This is the information will show up as description customer sales invoice
Purchasing Information = This is the information will show up as description of vendor purchase order
Price = Sellling Price
Cost = Purchase Price (estimated purchase price will do if actual price vary)
Income Account = Income Account which will show as Income category in P&L
Expense Account = Cost of Good Sold (default)
For detailed instructional guide regarding these topics, you can also checkout our top-rated YouTube videos published for new QuickBooks Online users.
QuickBooks Online: How to import Inventory with Quantity on Hand from Excel into new QBO?
QuickBooks Online Plus: how to add beginning inventory quantity on hand?
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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