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How to properly account for Inventory Purchases in QBO+ when using inventory tracking

How do I properly record/account for Inventory Purchases showing in linked banking account? We do track inventory in QBO.

Currently, I have been adding the new quantity or starting quantity of the product along with the cost per item into Inventory as an Inventory Asset and then let the expense hit COGS when sold. Is there anything else I need to be doing to fully account for this when we receive the product into inventory? Do I need to do anything with matching the transactions showing in my linked banking account for these Inventory purchases?

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QuickBooks Team

How to properly account for Inventory Purchases in QBO+ when using inventory tracking

I'm here to provide you the help that you need with inventory tracking in QuickBooks Online, blane_sticksvines.

 

Adding everything that you buy and sell is one of the best ways to properly track your inventory. You'll want to make sure that an invoice and sales receipt is created to track what you sell.

 

Also, to properly account for purchases, you can create a purchase order and copy it to the bill. But before doing so, ensure that you already have set up the items in the Product and Services List and everything in inventory will just flow and run smoothly. 

 

Here's an article that you can check out for more information: Add Inventory Products In QuickBooks Online (QBO).

 

On the other hand, you can match existing entries once the system recognizes the suggested matches in the Banking tab. 

 

I've added these article for your future reference:

Feel free to let me know if you have any other concerns with the inventory. I'll always be right here to help you anytime you need it.

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