Inventory

Thank you for turning to the Community about your inventory concern, AmyMc.

It's vital to maintain accurate financial and inventory records to ensure the smooth operation of your business, especially when it comes to year-end filings.

To better assist you, I just have to ask for more details about your concern. How did you track your dropship items and customers? Did you create invoices and record them in QuickBooks?

Regarding your concern, are you referring to inventory out of balance? If so, could you provide more information about the issue you're experiencing? This will help me get on the same page and ensure the best resolution. 

Thank you for taking the time to share your concerns with me. I look forward to hearing back from you soon. Have a great day, AmyMc.

Yes I create an invoice in QB Desktop to the customer.  When it asked for SITE I use drop ship.  We are having issue keeping our inventory straight and I am new to this company this was already all set up in Quickbooks.  I am wondering if its pulling from our inventory even though I am picking drop ship.  Is that possible?

@AmyMc 

Forgive me if you know this already.  Drop-ship items are never inventory to you because you don't own the items - the drop-shipper does.  And, from an accounting standpoint, there is no way to add a drop-shipped item to inventory without making a false credit entry to offset the inventory debit in the company's books.   Normally, you would offset the inventory debit (increase) with a corresponding A/P credit (increase) if you're on terms with the vendor, a cc liability credit (increase) if you pay with a cc, or a cash credit (decrease) if you pay cash.  But, none of those happen in the case of drop-shipping.  IMO, drop-ship items should be set up as a non-inventory part.  Revenue is recorded on the invoice when sold and the expense is recorded on the bill when the drop-shipper bills you.