Supply and demand is a simple concept but a game-changer for business owners. While sales are always welcome, if they exceed more than your inventory, it can be a disaster. No one wants to refund thousands of dollars to their unhappy customers, but what’s a business owner to do? I want to introduce you to inventory tracking in QuickBooks Online.
Inventory tracking helps you keep tabs on what goods you have on hand and lets you know when it’s time to restock.
Without further ado, let’s start with turning this setting on in your account:
Go to the Gear Icon and select Account and Settings.
Select the Sales tab.
Click on the Edit Pencil in the Products and services section.
Turn on Show Product/Service column on sales forms. You can also turn on price rules. This allows you to provide certain customers with discounts for a certain amount of time.
Turn on both Track quantity and price/rate and Track inventory quantity on hand.
Select Save and then Done.
This setting is only available in QuickBooks Online Plus and Advanced. If you’re not using one of those plans, take a look at what they have to offer here.
Note: QuickBooks uses FIFO (first in, first out) as its inventory costing method. Turning this on will affect your books. If you’re unsure, we recommend you talk to a tax expert.
OK, you turned the setting on and now you get to add your products and services! You have the option to add each one manually or upload a document.
To add products individually:
Hover your mouse over Invoicing on the left menu.
Choose Products and Services.
Click on New and choose between: Inventory, Non-inventory, Service, and Bundle.
Since Inventory is the focus of this article, let me show you some of the information included when adding inventory.
After selecting New, click on Inventory.
Add a Name, SKU, or category for what you're tracking. Quick Tip: Categories let you group your products and services together so they’re easier to find.
Select the unit from the Unit drop-down.
Choose the category from the Category drop-down.
What else can you add? QuickBooks Online is very thorough and has a wealth of fields available to you: