I am opening an antique store, I have a pretty sophisticated POS system that I have been inputting all my inventory into. My CPA stated that I didn't need to track inventory in Quickbooks because my POS system will allow me to print what is left at the end of the year.
However, when I am purchasing items he told me that I needed to create an Inventory item in the chart of the accounts. So, I enabled Inventory in QB but not sure how I can just set up one generic item for all my items? or what income account it should be set to?
I know that with my POS there is an app that will transfer my daily sales to Qb. Can anyone help?
Greetings. I read your message and I have a lot of questions that you might be able to help me with. I know you were here seeking advice and not expecting questions, I hope you don’t mind. We have an antique business with 2 retail locations addition to our online selling platforms. We’re trying to figure out what is the best POS system for us. We have the same issue your describing about inventory. Please share any info you have and what system you currently have in place, if you don’t mind. I sincerely appreciate your time and look forward to hearing back from you.
What you should do in QB is implement the periodic inventory method and not use inventory items at all.
There are two ways to do periodic inventory, choose one and stick with it, you can not mix and match
1. (my preference) Create an asset account called purchases and post all purchases of item for resale to that account. Periodically, weekly, monthly, etc value the inventory on hand, subtract that value from the amount shown in the purchases account and do a journal entry for the answer to the subtraction debit COGS for that value credit purchases for that value
2. Post all purchases to COGS. Periodically, but at least at the end of the year, you value the inventory on hand and do a journal entry. debit the asset purchases account for that value credit COGS for that value
Print the P&L then reverse the journal entry debit COGS for that same value credit the asset purchases account for that value
This last journal entry, moves the value of what was on hand at the end of year back to COGS so the cost will be counted against the new year sales.