I have two questions: How do you markup inventory in online? Does QBO automatically adjust cost based on new purchase?

Hi SandyD_4

Thanks for reaching out to us.

Hi SandyD_4,

It's fantastic to see that you're expanding your use and knowledge of your QuickBooks Online program. With its thorough inventory module, you can stay on top of your bottom line. Sophia has given you some good information, but I want to fill in some of the details for you.

If you're not familiar with the term, FIFO refers to the First In First out cost method. This means the first inventory items purchased will be the first to be sold. Here's an article that explains this in further detail: What is FIFO and how is it used for inventory cost accounting? The program won't create a mark-up on your inventory items, the only products that can be set with a markup value are the ones set up as billable expenses.

You can change the sale price on any item as you see fit. If your costs increase you can edit the sales price of the inventory item. This article goes through adding new products and how to edit them later: Add product and service items to QuickBooks Online.

If you require any further assistance, reach out. Have a great night!

This is really not what I am looking for.  

When entering a product or service in payables will it automatically change the cost in inventory based on the new cost?  So for an example:  in inventory the cost of a hat said $5.  We just purchase some more hats and now the cost is $6.  Will the system update the cost to $6 in  inventory. .

Which leads to my second question:  our markup is eg 10% .the hats were $5 +.50 sales cost $5.50.  Now that the costs has gone up the sales costs should be $6.00 + .60 = $6.60.Can all of this be done automatedly and not manually.

I notices the price rules but the increase/decrease is added the the sales price and not the Cost of the item. If the same thing could be done to the cost it would work

Hi Sandy,

I'm glad you reached out for clarification. If you purchase 10 hats. The first 4 costs you $2/each, the next 3 cost you $4/each and the last 3 costs you $5/each. With the FIFO cost method, when you sell these items, it will calculate the cost based on what you've paid. So if someone comes in and buys 6 hats, it will calculate the cost at 4x$2=$8, + 2x$5= $10= cost of $18. What they are sold for is what you put in as the sales price. This has to be changed manually. It won't change because the cost did.

I hope this helps.

Is this something that Quickbooks is going to implement?  We just switched from enterprise to online not realizing that the inventory doesn't work the same.  In enterprise when the cost of an item increases the program generates an option to increase the sales price as well.  To do this manually everytime we purchase something is extremely time consuming and the margin for error in not increasing the price we sell for is extremely high.  This has the potential to cost us a lot of money.

Connie

Good evening, ConnieHannah.

Thanks for chiming in on this thread. I can see how being able to have the price change automatically would be an option you'd like to see in QuickBooks Online, so I recommend leaving feedback for our developers by heading to the "Gear" icon and clicking on the "Feedback" option. These comments are viewed and considered as they create new features and updates for QuickBooks. 

Don't hesitate to reach back out if you have any other questions.