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PelletPeddlerLLC
Level 1

QB2019 Desptop Pro - Inventory purchasing and flow for Retail operation

BRAND new user of Quickbooks.  I am running Desktop Pro 2019. 


Sorry this gets a bit long, hoping giving a detailed overview will help the experts guide me to the best plan of action to do what I need and also not take hours each night entering information as this is a side business.  I have been running this business for a long time with Excel spreadsheets, a new sheet for each stock order that brings in left over inventory from previous stock orders.  I have recently formed an LLC and splitting things out of my personal accounts into strictly business ones.  As of April 1st I am going full live with QB (will keep Excel running parallel till more comfortable)

 

My current standard practice has been to figure out what I need to buy to refill the shelf, little bit of magic guessing sales until stock order lands and then I place an order with the MFG.  Orders take a few days to ship and then 1-2weeks to arrive.  I pay by either debit card (or CC if I am low on funds in the bank to pay "cash") which is charged the day the order ships to me.  As I make sales the $ goes into the bank and I make payments to CC from there.  

 

THE QUESTION:

In QB I have inventory tracking on as I am a retailer stocking product on my shelf.  I am a bit confused as to the best way to do this inventory order process QB Desktop 2019.  I was thinking initial entry would be a PO in QB at the time I place the order listing exactly what I am ordering, that will give me a way to see what is on order and also clear any QB reminders for low inventory.  Then how do I handle the CC/BankDebit that happens when the product ships, without adding the item qtys to my inventory?

Solved
Best answer April 03, 2019

Best Answers
Rustler
Level 15

QB2019 Desptop Pro - Inventory purchasing and flow for Retail operation


@PelletPeddlerLLC wrote:

 I was thinking initial entry would be a PO in QB at the time I place the order listing exactly what I am ordering, that will give me a way to see what is on order and also clear any QB reminders for low inventory. Then how do I handle the CC/BankDebit that happens when the product ships, without adding the item qtys to my inventory?

 


QB does not do in transit receipt or recording.

 

Create the PO as you stated

Enter the payment and use accounts payable, vendor name, as the expense (reason) for the payment. That sets a vendor credit in that amount.

 

When you get the items in hand, enter the bill, adjust the total cost of the items by some portion of the shipping amount (shipping, taxes, etc are all part of item cost) and save

 

bring up pay bills, select the bill and apply the credit.

 

@Kristine Mae 

 

No, your work flow is wrong for the scenario stated, your work flow DOES stock the items.

View solution in original post

3 Comments
Kristine Mae
QuickBooks Team

QB2019 Desptop Pro - Inventory purchasing and flow for Retail operation

Hello there, PelletPeddlerLLC.

 

I was once a new user of QuickBooks. But, with the help of my colleagues, I was able to learn how the software works. And now, I'll share to you what I know about inventory order process.

 

QuickBooks has 2 A/P workflows. The 1st workflow might fit your concern. 

  1. Create purchase order.
  2. Receive inventory.
  3. Enter bills against inventory.
  4. Pay bills.

You can refer to my screenshot below.

 

 

Regarding your second question, you can create a bill, then choose an expense account for the fees. 

 

If you have more questions, don't hesitate to get back to this thread. We're just around to help. 

Rustler
Level 15

QB2019 Desptop Pro - Inventory purchasing and flow for Retail operation


@PelletPeddlerLLC wrote:

 I was thinking initial entry would be a PO in QB at the time I place the order listing exactly what I am ordering, that will give me a way to see what is on order and also clear any QB reminders for low inventory. Then how do I handle the CC/BankDebit that happens when the product ships, without adding the item qtys to my inventory?

 


QB does not do in transit receipt or recording.

 

Create the PO as you stated

Enter the payment and use accounts payable, vendor name, as the expense (reason) for the payment. That sets a vendor credit in that amount.

 

When you get the items in hand, enter the bill, adjust the total cost of the items by some portion of the shipping amount (shipping, taxes, etc are all part of item cost) and save

 

bring up pay bills, select the bill and apply the credit.

 

@Kristine Mae 

 

No, your work flow is wrong for the scenario stated, your work flow DOES stock the items.

View solution in original post

PelletPeddlerLLC
Level 1

QB2019 Desptop Pro - Inventory purchasing and flow for Retail operation

Thanks Rustler!

 

So a follow up question with regards to the payment portion of the process.   I was searching around the internet for inventory/PO entry beofre you answered and found a video where the instructor had setup a Other Current Asset account called "Inventory Pre-paid". 
He then used that account for entering his CC purchase to the vendor against before he received the product.  While he was waiting for the product to arrive, The account and value then was right under the inventory asset account in his chart of accounts and let him clearly see pending inventory value and existing inventory.  It seemed logical to me since it is an asset I paid for but do not yet physically have?  He then later enters a bill and applies the credit from that account.  I think it is the same amount of steps regardless of the account used?  Or is that just uselessly complicating it and I should just book the payment against "Inventory Asset" when I make the CC  payment?

Full video is here (It is 8min long and he starts getting into the accts around min3):  https://www.youtube.com/watch?v=Y2tvSntaSSg&t=208s

 

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