Hi coastalmarineind,
It's great to see you've joined Community. Welcome! I'm glad to see you reaching out for advice on properly tracking your inventory based on how you're items are purchased. QuickBooks Online Plus has the exceptional feature for tracking inventory for what you have on hand, and notifies you when supplies are low. I'd be happy to provide the information you need to get started!
To access the inventory feature you'll need to upgrade your plan, if you're not currently subscribed to QuickBooks Online Plus. Please be advised that only the Primary Admin on the account will have access to subscription information.
Follow these steps to upgrade:
1. From the Gear ⚙ in the top right, click Account and settings
2. Open the Billing & Subscription tab
3. Select Upgrade your plan
4. Follow the on-screen steps to upgrade your plan
To turn on inventory tracking, go to:
1. Open Account and Settings from the Gear in the top right
2. Select Sales
3. Click the Edit ✎ in the Products and Services section
4. Turn on Show Product/Service column on sales forms, Track quantity and price/rate and Track inventory quantity on hand
5. Hit Save and then Done
You're ready to add your inventory products you want to track. Here's how:
1. Click on Sales from the left menu and then Products and Services
2. Hit New and select Inventory
3. Enter a Name, SKU, or category for what you're tracking
Tip: Categories let you group products and services together so they’re easier to find.
4. Choose a category from the Category ▼ drop-down or +Add new
5. Enter the Initial quantity on hand and the starting date for tracking that quantity in the As of date field
6. Add a Reorder point to get alerts when it's time to reorder.
7. Select the Inventory asset account ▼ drop-down and choose Inventory Asset QuickBooks uses this account to track the cost of all products in stock
8. Enter the product description. This shows on invoices, sales receipts, and other forms you send to customers
9. Set the Sales price/rate
10. From the Income account ▼ drop-down find the account you use to track sales
11. Checkmark Inclusive of tax, if applicable
12. Select the Tax▼ drop-down and choose the tax rate for the item. If you don’t see this be sure you've set up sales tax in QuickBooks
13. Enter the product description that will show on bills, purchase orders, and other forms you send to suppliers
14. Add the Cost
15. From the Expense account ▼ drop-down, select Cost of Goods Sold
16. Check the Inclusive of purchase tax check box, if applicable
17. From the Purchase tax ▼ drop-down, select the applicable tax
18. Enter your preferred supplier. QuickBooks remembers your preferred supplier so you can reorder this product easily.
19. Hit Save and close when complete.
Now that you've set up your inventory, QuickBooks will decrease the quantity on hand based on the amount of an invoice or sales receipt. You can check the status of your inventory when running reports.
See how to set up and track inventory in QuickBooks Online with additional information for your reference.
If you have any other questions, please reach back out. We'd be glad to assist!
