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product update

Reorder points in inventory

A Reorder Point is the threshold when you should order more products or stock to prevent shortages. This enables you to take control of the stock you have on hand and avoid over-ordering or having your cash tied up in old stock.

It is found in QuickBooks Online Plus version.

QuickBooks Online has a Low Stock alert and an Out of Stock alert once they are set up in your Inventory items.

These alerts are found in the Products and Services home page.

To use Low Stock alerts, in QuickBooks Online select how many of a particular product you always want to have in stock.

When the quantity on hand drops to or below the Low Stock alert, QuickBooks Online reminds you to order more.

Let’s look at the set-up process.

Click on the Gear Icon > Products and Services then locate your inventory item from the list, under the Action column click Edit.

In the Low Stock alert field enter the minimum quantity you want to have on hand. When the quantity on hand drops at or below the Low Stock alert, QuickBooks reminds you to order more.

If you are out of that item, QuickBooks Online will remind you that there is no available stock.

For example, our item Squawking Chook has a Low stock value of 300 and our Quantity on hand is 292.

Clicking on the Low Stock Alert: the items that are low will populate, so you can see which you need to reorder, such as the example below. The QTY on Hand is 292 and our Low Stock Alert amount is 300.

Clicking on the Out of Stock alert: the item that no longer has stock available will populate. A stock item will show in the Out of Stock alert when its quantity on hand is zero or below, as seen in our example of Dog Treats, we have a negative 4 amount.

Note: QuickBooks Online allows us to have a negative figure in stock if the invoice needs to be emailed out prior to receiving the stock for cashflow.

To order when low in stock or out of stock, go to the Low Stock or Out of Stock area.

This can be done in a number of ways.

Option 1:

After locating your item that requires a Purchase Order for restocking > Action column click on drop down menu > click on Reorder.

This will take you to the Purchase Order window where other items can be added and quantity required ordered.

Option 2:

After clicking on the Low Stock alert > choose all stock items to be ordered by selecting the box next to the item name (left-hand side) > this will populate a new button Batch Actions (right-hand side), click on the dropdown menu and choose Reorder

This will take you to the Purchase Order window where you can add other items to be ordered.


When running the Stock Take Worksheet, the Low Stock Alert column can now be found on the worksheet Reports > All Reports > Manage Products and Inventory > Stock Take Worksheet.

The Product/Service List Report will also give you the Low Stock Alert amounts Reports > All Reports > Manage Products and Inventory > Product/Service List > Customise > click on the side menu Rows/Columns > Change Columns > scroll down and select the box field Low Stock Alert.

Review Your System

A Reorder Point is not a set-it-and-forget-it task, because so many factors change customers’ purchasing behaviour. Sports stores will fluctuate between seasons. Grocers and retail stores will see increased sales around seasonal holidays as their customers entertain at home and purchase presents.

To understand and review your Reorder Point numbers and check your stock levels, read Business Victoria’s ‘Set up a stock control process ‘. By setting up the correct processes and controls, you’ll be able to run your business more effectively, as every dollar spent on unnecessary inventory is a dollar not spent on marketing or growing the business.

Find more information on inventory:

To read more articles related to product updates, visit here.

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