Managing Assets and Consumables in Advanced Inventory

Hi @ChristineCanada ,

Let's determine if I understand what you are wanting to do:

1.  You purchase small tools and add them to inventory using an Inventory Item when you purchase them from the vendor and enter the vendor's bill.

2.  You use one/several small tools on a particular job and you want to cost them to the job.

3.  If the tool is rendered damaged or it's useful life is over in the course of the job, then you will dispose of the tool.

4.  If the tool still has a useful life, you want to return it to inventory and make it available for use on future jobs.

If this is all correct, then I suggest you do the following:

1.  Create an Inventory Item for each small tool in question.

2.  When you purchase the tool from the supplier and enter the invoice, use the Inventory Item for that tool.  This puts the value of the tool into inventory.

3.  Since tools are being costed to the job but are never going to be "sold" to the customer on a sales document, you will need to make an Inventory Adjustment to take the tool out of inventory and cost it to the job.  You will use the Adjust quantity/Value on Hand function in the Inventory features.

4.  You have the option of making the adjustment type to be Quantity, Total Value, or Quantity and Total Value.  I suggest you use Quantity and Total Value.

5.  Enter the date, and the Adjustment Account which can be the COGS account.  You can enter it into a top level COGS account, or if you have sub-accounts under your COGS account to further break out your COGS expenditures, enter it to one of them.  It might even be helpful to create a sub-account under COGS just for this purpose . . . for small tools to move in and out of.

6. Give the entry a Reference No., enter the Customer:Job, and the Class if you are using Class Tracking for these transactions.

7.  Enter the item name you created for this tool.  It will auto-populate the QTY on Hand field.  Enter in the New Quantity.  If one of these is going out to a job, and you had a current QTY of 5, you would enter a New Quantity of 4.  The QTY Difference will auto-calculate.  Or, you can enter the QTY Difference as -1, and the New Quantity will auto-calculate.  The Value of the Adjustment (dependent on which method of inventory valuation you have chosen to use, Average Cost or FIFO) calculates at the bottom of the window.  This is the amount that will go to COGS and be assigned as a cost to this job.

8.  If and when the tool is "returned" to inventory, you would follow the same process as above but in reverse, adding the item back into inventory.  If you want to leave the cost of this tool in the cost of the job, when you return the item to inventory, do not enter a Customer:Job in the adjustment entry.  This way the quantity and value will be returned to inventory, netting in a $0.00 balance for this tool in the COGS account, but the value will still be assigned to the cost of the original job.

This should accomplish the original intentions you stated in your post.  If I have incorrectly stated these intentions, please let me know and we can re-look at the process above to see what will work best for you.

Hi ChristineCanada,

Welcome to the QuickBooks Community. You'll find it's a great way to connect with other users and get answers to your questions. QuickBooks Enterprise has a hearty inventory module that can help you keep on top of it. Rochelley has done a fantastic job of explaining the process. I want to provide you with the article to review if you want: Adjust your inventory quantity or value in QuickBooks Desktop. 

You can always reach back out if you require further assistance. Have an amazing day!

Hi there, could i do the same with a scanner will it work automatically or would i still need to do all the manual steps?

Hi there, could i do the same with a scanner will it work automatically or would i still need to do all the manual steps?

Hi ChristineCanada,

There are a few things you would need in order to use a scanner with your QuickBooks Enterprise program. First you would need to have advanced inventory on your account and a compatible scanner. The items would all need to have the same item number and you'd also need to have the number assigned to the item. This article goes over more about using scanners in QuickBooks Enterprise.

If you have any questions feel free to reach out and we'd be happy to help!

Hi @ChristineCanada ,

You would still have to set up each item, and your barcode has to match your numeric or alpha/numeric number.  Once the items are set-up, you would still have to go to the form that needs the entry in it, put your cursor in the item field, and then scan the barcode with your scanner.  Example:

If you are adding an item to inventory, you will have your vendor bill or receipt open with your cursor in the Item field.  Scan the item and that item will populate that line.

If you are selling an inventory item, you will have your sales form open with your cursor in the item field.  Scan the item and that item will populate that line.  (Remember that this removes that item from inventory and debits COGS in the background.)

If you are adjusting an inventory item, you will have your inventory adjustment form open as we dicussed previously, cursor in the item field, then scan your item and make your adjustment.

So no, using the scanner does not prevent you from having to open the correct forms and tab between fields but it does prevent you from having to type in the item code on each line item.  Personally, I can type faster than I can man-handle a scanner, so I prefer to just type in my item codes, as the item codes should still be on a bar code sticker on the item(s).  It is mostly a matter of preference and which way you find to be most convenient for you.  If you have a lot of people on staff who will be making these entries, then scanning would be the way to go as a lot of people's typing speed and accuracy is not at a high level.  But admin would still have to set up each item.

Hope that helps. :)