Talk to your accounting professional. If the value differences are small create a special inventory adjustment account for this transaction, and make your adjustment. Then have your accounting professional write off this amount.
Set up Advanced Inventory in QuickBooks Desktop
by Intuit• Updated 3 months ago
When you turn on Advanced Inventory, you can track inventory stored at different sites or locations. For example, you might store inventory at different warehouses, in multiple trucks, in different areas within a warehouse, at consignment locations or outside manufacturers. To make sure your quantity on hand by site is accurate, you need to set up Advanced Inventory correctly.
In this article, you'll learn how to:
- Set up inventory sites
- Convert from your previous method of tracking inventory sites
- Set reorder points for each site
- Transfer opening quantities of items to each site
- Add a site column to your printed sales and purchase forms
- Add a site column to memorized transactions that include inventory
Note: | You MUST turn on Advanced Inventory before proceeding. Follow the steps in Turn on Advanced Inventory to do so. |
Step 1: Set up inventory sites
The first step to track multiple inventory sites is to tell QuickBooks Desktop where you track inventory. These locations are called sites. Sites can be actual warehouses with different addresses, trucks, piles, staging areas, or any other location—large or small—where you want to track inventory quantities.
To do this task:
- From the Lists menu, select Inventory Site List.
- Select Inventory Site, then New.
- Enter the appropriate information.
- Repeat Steps 1 to 3 until all your sites are set up.
When you have completed this step, you can proceed to Step 2 if you are switching from a different method of tracking multiple inventory sites or Step 3 if you need to set reorder points for each site. Otherwise, proceed to Step 4.
Step 2: Convert from your previous method of tracking inventory sites
You may currently use a different method (with QuickBooks Desktop or another software) to track multiple inventory sites. Before you use multiple inventory sites, you need to ensure that your inventory numbers are correct so you can easily transition to using Advanced Inventory.
Depending on your current method, you may need to take additional steps to switch to Advanced Inventory. For detailed instructions, find your current method from the list. If not listed, look at the option "You use another method."
Step 3: (Optional) Set reorder points for each site
With Advanced Inventory, you can track site-specific reorder points for each item. This means you can have a different reorder point for each site, and QuickBooks Desktop can warn you when you're running low at a specific site.
Reminder that site reorder points do not "roll up" (add up) to calculate a global reorder point. You must set the global reorder point for each item.
- From the Lists menu, select Inventory Site List.
- From the Activities dropdown, select Set Reorder Points.
- Select the Set reorder point for site dropdown arrow and select the site you want to set a reorder point for.
- In the Site Reorder Pt column, enter the reorder point for each item.
- To set reorder points for other sites, select the Set reorder point for site dropdown arrow and select another site. Repeat the process until reorder points are set for all sites.
- Select OK.
Step 4: Transfer opening quantities of items to each site
When you turn on Advanced Inventory, QuickBooks Desktop prompts you to begin with a single, temporary starting site. Consequently, QuickBooks Desktop shows that your entire inventory is stored at one location.
Now you may be ready to transfer your inventory from the starting site to their actual sites. To do this step, you need current inventory counts for each site.
To enter a new transfer for each site:
- From the Inventory menu, select Transfer Inventory.
- In the Date field, enter the date of the transfer. This can be the date you begin tracking multiple sites.
- In the Reference No. field, enter the appropriate transfer number. We recommend "setup1," "setup2," and so on for these transfers.
- From the Transfer from dropdown, select your temporary inventory site.
- Select the To dropdown and select the actual inventory site.
- Select the inventory items to transfer to the site:
- To select individual items:
- Go to the Item column.
- Select the dropdown and choose an inventory item.
- To select multiple items:
- Select Find & Select Items.
- Check the items you want to transfer then select Add Selected Items.
- To select individual items:
- In the Qty to Transfer column, enter the number to transfer for each item.
- (Optional) In the Memo field, enter the reason for this transfer such as "Transfer opening quantity to site."
- (Optional) Select Print if you need a printed copy of the transfer.
- Select Save & New.
- Repeat these steps for each inventory site.
- When finished, select Save & Close.
Tips and tricks
If you want to transfer the same items to multiple sites, you can save time by duplicating the inventory transfer:
- From the Inventory menu, select Transfer Inventory.
- Select Previous until you find the transfer you want to duplicate.
- Select Edit then Duplicate Inventory Transfer.
- Change the details of the transfer as necessary.
- Select Save & New and if necessary, repeat these steps for each inventory site.
- When finished, Save & Close.
Step 5: (Optional) Add a site column to your printed sales and purchase forms
A site column appears on all forms (invoices, purchase orders, and so on) you see onscreen. However, this column doesn't appear when you print the form.
This could be a problem if:
- You need to print the site on internal documents such as picker lists or work orders.
- Your customers need to know the site.
To work around this, you can customize your form template so you can add or remove columns:
- Open the sales or purchase form.
- Go to Formatting, then Customize Data Layout.
- In the Additional Customization window, select the Columns tab.
- Under the Print column, put a check mark on the box for Inventory Site.
- Select OK.
Step 6: Add a site column to memorized transactions that include inventory
This final step is only necessary if you have memorized transactions that include inventory part items. If so, you should edit the memorized transactions to enter the site information.
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