Tracking inventory

It's great that you're using the inventory tracking feature in QBO Plus, as it can simplify managing your inventory, rchiarchi. Allow me to provide more insights.

From what I understand, you recorded the purchase of your inventory as an asset back in November 2023, and you only began tracking that inventory in 2024 by creating items on the Products and services page. This can be a bit tricky because QuickBooks Online (QBO) doesn’t automatically connect the existing asset amounts with the new inventory items. As a result, when you made sales, the system only recorded the revenue from those sales and didn’t account for the Cost of Goods Sold (COGS) as it should have.

In essence, while your sales are being tracked, they’re not properly reflecting the costs associated with the inventory you sold. To correct this, you'll need to link those existing inventory purchases to the new items so that QBO can calculate COGS each time a sale occurs. This can involve reopening closed books from 2023.

Just a heads-up, since this may involve reopening the closed financial year of 2023 to correct how inventory is tracked from the previous year, I recommend consulting your accountant.

Moreover, you can use report to see your sales and inventory status in QuickBooks Online.

If you need further assistance or have any questions regarding tracking the inventory. Feel free to reach out. We're here to help you ensure your financial tracking is as accurate and efficient as possible.
 

Thank you for the reply. Reopening the books is not an option. Is there a workaround?

Thank you for responding to this thread, Rchiarchi. I'll provide some additional details about how inventory tracking operates, along with a workaround to get you back in business.

When you were reviewing past sales records from February 2024, were those products initially listed as non-inventory items before you switched them to be classified as inventory items? Also, did this reclassification happen before you switched to QBO Plus and started tracking your inventory? If so, this will explain why the cost of goods sold (COGS) and sold items aren't showing up for you. QBO recognizes transactions based on their original classification.

To fix this issue, you have to inactive all products and service types that were initially changed from non-inventory to inventory. Afterwards, you can then recreate them as inventory-type services with the same information entered from your previous products. Once you do this, you can now start tracking your inventory correctly and the cost of goods sold (COGS) will show up as expected.

Additionally, I'll share this article in case you want to organize your products and services in QBO to provide helpful insights into your sales and inventory when you run reports: Group products and services into different categories in QBO.

We're all rooting for your business to thrive, Rchiarchi. Please know that you can always reply to this thread if there’s anything else you need as you update your processes. We're always here to help.