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billhdz
Level 5

Can non-inventory items be used to buy and sell products without using the QB inventory feature?

Hello,

Can non-inventory items be used to buy and sell products without using the QB inventory feature?

 

I am an artist that sells art prints wholesale and retail.  For the most part, I produce most of the prints in-house, so I don't have the need to track inventory in 95% of the cases.  If I have to track inventory, I would use a spreadsheet.

 

I am thinking that the way to do this is by setting up my products as non-inventory items.  Is this the correct approach? 

 

I am asking, because everything I read about non-nventory items has to do with nuts and bolts, and minor things lke that. 

 

The only two option I see to use in QB with what I am trying to set up is "other charge" and "non-inventory items"

 

Thank you in advance for your help!

p.s. "I am using Quickbooks Desktop 2021, but I am thinking this can apply to all versions of Quickbooks."

 

Solved
Best answer January 11, 2024

Best Answers
MirriamM
Moderator

Can non-inventory items be used to buy and sell products without using the QB inventory feature?

Hello there, billhdz.

 

I'm here to assist you with your inventory query. 

 

Yes, you can use non-inventory items in QuickBooks Desktop (QBDT) to buy and sell products without using the inventory feature.

 

Setting up your products as non-inventory items is indeed the correct approach for your situation. Non-inventory items in QBDT can be used to track sales and purchases without affecting the quantity on hand. This is ideal for businesses that don't need detailed inventory tracking for their products.

 

Additionally, when you create a non-inventory item, you can specify the sales price, purchase cost, income account, and expense account associated with that item. Doing so will allow you to track the sales and purchases of your art prints without the need for detailed inventory management.

 

Lastly, this approach is applicable to QuickBooks Desktop 2021 and other versions of QuickBooks as well. 

 

For more tips while working with your inventories, you can browse a topic from this page: Running your business / Inventory.

 

If you have any questions about inventory in QuickBooks Desktop 2021, feel free to ask for further assistance. I'm here to help.

View solution in original post

Rainflurry
Level 14

Can non-inventory items be used to buy and sell products without using the QB inventory feature?

@billhdz 

 

"Can non-inventory items be used to buy and sell products without using the QB inventory feature?"

 

Yes, certainly.  That is the purpose of the non-inventory product.  It's for products that you buy/sell that you don't need to track as inventory.  The question is not can you use inventory or non-inventory products for your art, but should you ?  Technically, if inventory is an income-producing factor in your business then you should be tracking (capitalizing) the value of inventory that you have in-house or on consignment.  And, you then also should be on accrual basis accounting.  Are you on cash or accrual basis?  Are you a sole proprietor or an S-Corp or ???  If you're on cash basis then you do not track inventory.  If you're on accrual basis then, yes, you should be tracking inventory.  Forgive me if you're aware of all this - it's not always clear the level of tax/accounting experience of users on this forum.   

View solution in original post

7 Comments 7
MirriamM
Moderator

Can non-inventory items be used to buy and sell products without using the QB inventory feature?

Hello there, billhdz.

 

I'm here to assist you with your inventory query. 

 

Yes, you can use non-inventory items in QuickBooks Desktop (QBDT) to buy and sell products without using the inventory feature.

 

Setting up your products as non-inventory items is indeed the correct approach for your situation. Non-inventory items in QBDT can be used to track sales and purchases without affecting the quantity on hand. This is ideal for businesses that don't need detailed inventory tracking for their products.

 

Additionally, when you create a non-inventory item, you can specify the sales price, purchase cost, income account, and expense account associated with that item. Doing so will allow you to track the sales and purchases of your art prints without the need for detailed inventory management.

 

Lastly, this approach is applicable to QuickBooks Desktop 2021 and other versions of QuickBooks as well. 

 

For more tips while working with your inventories, you can browse a topic from this page: Running your business / Inventory.

 

If you have any questions about inventory in QuickBooks Desktop 2021, feel free to ask for further assistance. I'm here to help.

Rainflurry
Level 14

Can non-inventory items be used to buy and sell products without using the QB inventory feature?

@billhdz 

 

"Can non-inventory items be used to buy and sell products without using the QB inventory feature?"

 

Yes, certainly.  That is the purpose of the non-inventory product.  It's for products that you buy/sell that you don't need to track as inventory.  The question is not can you use inventory or non-inventory products for your art, but should you ?  Technically, if inventory is an income-producing factor in your business then you should be tracking (capitalizing) the value of inventory that you have in-house or on consignment.  And, you then also should be on accrual basis accounting.  Are you on cash or accrual basis?  Are you a sole proprietor or an S-Corp or ???  If you're on cash basis then you do not track inventory.  If you're on accrual basis then, yes, you should be tracking inventory.  Forgive me if you're aware of all this - it's not always clear the level of tax/accounting experience of users on this forum.   

billhdz
Level 5

Can non-inventory items be used to buy and sell products without using the QB inventory feature?

@Rainflurry 

Thanks for the reply.  I am a single member LLC.  Cash Basis.

 

I basically use Quickbooks to keep track of all my sales, invoices, credit card payment info, and check.  Then I print a Profit & Loss and Balance Sheet, and I give this to my accountant to do my taxes.

 

Some things I charge for are services and some are wholesale and retail.

 

 

billhdz
Level 5

Can non-inventory items be used to buy and sell products without using the QB inventory feature?

@Rainflurry 

 

Based on what you know about me now, that  I am a single member LLC.  Cash Basis and that I use Quickbooks to keep track of all my sales, invoices, credit card payment info, and check.  Then I print a Profit & Loss and Balance Sheet, and I give this to my accountant to do my taxes.

And some things I charge for are for services  and  some are wholesale and retail.

 

What I am trying to do, is not to stop keeping track of inventory on items that I need to, but to not use quickbooks to keep track of  the inventory.  Even though a lot of the art prints I sell don’t require inventory because I produce them to order or n small quantities at a time, which I would o as non-inventory items.

 

I am thinking, for items that I do need keep inventory on, I can do it on a spreadsheet and just enter the sales in quickbooks?

Am I approaching this correctly? I just want to avoid using the QB inventory feature.  I don’t like it.

 

I imagine a spreadsheet to keep track of some inventory would be simple.  Just item description, cost, sale price, starting quantity, and quantity on hand.  I can do this using the Apple numbers app or excel.

 

How do you envision this spreadsheet and working with quickbooks this way?

 

Thank you

 

 

 

 

Rainflurry
Level 14

Can non-inventory items be used to buy and sell products without using the QB inventory feature?

@billhdz 

 

"I am thinking, for items that I do need keep inventory on, I can do it on a spreadsheet and just enter the sales in quickbooks?  Am I approaching this correctly?

 

How do you envision this spreadsheet and working with quickbooks this way?"

 

Here's the short version: because you're on cash basis, the cost of inventory should be expensed when you purchase it, not capitalized into your inventory asset account.  Therefore, there's no reason to use QB for tracking inventory. You can just expense the cost of inventory on a bill using a non-inventory product or just assign an expense category to the bill.  On the income side, you would enter sales as you suggested.  Personally, I would suggest having this discussion with your accountant.  You're cash basis and track inventory and that, IMO, is problematic.  Your accountant is more familiar with your business than someone on the internet so as long as they're ok with you being on cash basis, that's what matters.   

billhdz
Level 5

Can non-inventory items be used to buy and sell products without using the QB inventory feature?

That makes sense. Thank you!

 

AlcaeusF
Moderator

Can non-inventory items be used to buy and sell products without using the QB inventory feature?

Hello Rainflurry,

 

Thank you for sharing your input to help address the issue. We love to see members supporting one another. Have a great day. 

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