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Level 2

Noob QBO Start-up question on inventory

Hi folks hope you can help.

I have this year started an business selling online through Shopify and have just invested in QBO Plus as I wanted to ensure that I have a comprehensive view of my business performance in one place, and of course a good set of books.

 

I hope you can assist me with this example scenario:

 

  • On start up I purchased 100 Widgets for $50 total, from my personal bank account.
  • I sold 25 Widgets for $25 and the profit went into my personal bank account.
  • I then opened a business bank account for my store, and sold another 25 Widgets for $25 and the profit went into my business bank account.
  • I now have 50 Widgets on hand in inventory.

 

I've got detailed spreadsheets with all of this stuff recorded and ready for importing. What are the expert views on how I should go about representing all this in QBO? I have yet to set everything up for fear of making a mistake.

 

Any help appreciated, thanks in advance.

Solved
Best answer April 06, 2020

Best Answers
Highlighted
Content Creator

Noob QBO Start-up question on inventory

Hi AnjaliGeneration,

 

Yes, exactly! This way you won't have any discrepancies with recording these transactions. See this article for a more detailed description on importing your transactions; if you do get stuck importing the CSV, feel free to reply to me with further questions or reach out to our Support Team:

 

  1. In your QuickBooks Online, click the Help menu in the upper-right corner.
  2. Select Contact us and enter the details of your concern.
  3. Click Let's talk and choose Chat or Get a callback.
  4. Enter the required information.

 

-Kass

View solution in original post

6 Comments
Highlighted
Moderator

Noob QBO Start-up question on inventory

Good day, AnjaliGeneration.

 

I'm here to help and ensure your concerns are addressed accordingly. You can create an expense or bill when purchasing your Widgets.

 

Here's how:

 

  1. Click + New and choose Bill.
  2. From the Supplier ▼ drop-down menu, select a supplier.
  3. From the Terms ▼ drop-down menu, select your preferred bill's term. The terms show when the supplier expects payment.
  4. Fill out these fields:
    • Bill date: When does the bill created, entered, or received.
    • Due date: When you must pay your supplier.
    • Bill no.: What number or reference distinguishes this bill from the same supplier.
  5. Enter the other needed information in Category or Item details, then select Save and close.

You can get more details about entering and paying bills in QuickBooks: Enter and pay bills.

 

To track your inventory, you can create invoices for those Widgets that have been sold. See the steps below.

 

  1. Select + New and then Invoice or Send invoice.
  2. From the Customer ▼ drop-down, select a customer. Make sure all of their info is correct, especially their email address.
  3. Review the Invoice date. Then from the Terms ▼ drop-down, select the due date. Tip: Net refers to the number of days until the payment is due. The default is 30 days, but you can change the due date if needed.
  4. From the Product/Service column, select a product or service. You can also select +Add new to create a new product or service right from the invoice.
  5. Enter a quantity, rate and change amount if needed.
  6. When you're ready to send the invoice, select Save and send. Or, if you're using QuickBooks Simple Start, select Send.

After that, you can record the payment and deposit the profit to your business bank account. To know more about recording payments depositing process, you can visit these resources:

 

And lastly, you can pull up some reports to see how many Widgets you have on hand. You can refer to this article in pulling up a report: Use reports to see your sales and inventory status.

 

Know that you can always visit our Help Articles page for QuickBooks Online in case you need some reference for your future tasks.

 

If I can be of help while working in QuickBooks, feel free to let me know by adding a comment below. You have a wonderful day!

Highlighted
Level 2

Noob QBO Start-up question on inventory

Thanks for your help, that’s really appreciated.

A ke question is do I need to worry about the fact that when I link my bank account it won’t show my  purchase transactions for the widgets as these took place from another bank? I don’t want my profit to date to have no COGS or for my current inventory to look like it cost me nothing.

Highlighted
Content Creator

Noob QBO Start-up question on inventory

Hi AnjaliGeneration,

 

To record the purchases, you can certainly link the account the widgets are purchased through if it is supported for bank feeds. Alternatively, you can import the transactions as a CSV file through your Banking tab, or even record them manually. To import them as a CSV:

 

  1. Download the transactions in CSV format from your online banking.
  2. In QuickBooks Online, go to the Banking tab
  3. Select the small arrow ▼ icon by the Update button, then select File upload.
  4. Upload the file. Select the preferred account from the dropdown (or create the account, if it's the first time) and follow prompts to import
  5. Your transactions will display in the Banking tab for you to categorise. 

 

-Kass

Highlighted
Level 2

Noob QBO Start-up question on inventory

Ahh ha! Thanks.

 

So do you think what I could do then is to import my transactions from Bank #1 that I used for the first purchases to match these against my first inventory orders, and then connect to my new bank to use that for future orders and have that upload automatically from a given date onwards?

Thanks.

Highlighted
Content Creator

Noob QBO Start-up question on inventory

Hi AnjaliGeneration,

 

Yes, exactly! This way you won't have any discrepancies with recording these transactions. See this article for a more detailed description on importing your transactions; if you do get stuck importing the CSV, feel free to reply to me with further questions or reach out to our Support Team:

 

  1. In your QuickBooks Online, click the Help menu in the upper-right corner.
  2. Select Contact us and enter the details of your concern.
  3. Click Let's talk and choose Chat or Get a callback.
  4. Enter the required information.

 

-Kass

View solution in original post

Highlighted
Level 2

Noob QBO Start-up question on inventory

Thanks a lot.