Inventory questions. Will the inventory quantity will be automatically updated in our product & services category when we create bill from PO to supplier?

Yes, QuickBooks Online (QBO) will automatically update the quantity of your items in the Products & services list when you create a bill from a purchase order, Evinna.

However, QBO does not automatically calculate the average cost of your inventory items based on multiple purchase orders or bills. Instead, the cost associated with your products and services is defined exclusively by the purchase cost entered when you initially created the item. This means that if you receive items at varying costs over different orders, you'll need to manually adjust the item cost by clicking Edit under the Action column to reflect any changes in pricing strategy or supplier increases.

Moreover, you can check out this article for detailed information about products and services: Add product and service items to QuickBooks Online.

You can also run inventory reports like Sales by Product/Service Detail report to identify what products are selling well, which allows you to manage your inventory more effectively.

If you have any further questions about managing your products and services, feel free to leave a comment below. The Community is always here to provide you with the assistance you need.