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NotANumbersGal
January 12, 2022
Question

How do I enter inventory transactions for previous year?

  • January 12, 2022
  • 1 reply
  • 4 views

I am new to Quickbooks Desktop. Actually, I'm pretty new to any sort of bookkeeping. My bookkeeper seems to be MIA. I can't get my hands on the previous year's Quickbooks files that she entered all of my information into. I track my inventory on a different program. I am looking for a way to enter monthly transactions for inventory and sales, rather than each transaction. While I'm sure this isn't the best way to do it, it is the only way that seems feasible with the limited time that I have.

This is for the previous year. I intend to start tracking inventory from Quickbooks for this new year, if I can learn more. Which leads me to needing a free bookkeeping course that anyone could recommend.

    1 reply

    Rainflurry
    Rainflurry
    Level 11
    January 12, 2022

    @NotANumbersGal 

     

    Entering you inventory/COGS on a monthly basis is completely fine and an accepted method in the industry.  Just know that your financial statements (P&L and balance sheet primarily) will only be accurate as of the date of those entries.  For example, if you enter sales, ending inventory and COGS on the last day of each month, your reports will only be accurate as of those dates.  You won't be able to run an accurate report as of October 15, for example.

     

    Google "periodic inventory system" and "retail method of inventory costing".  You will need a starting point for your inventory which should be the last physical inventory.  Then, estimate the ending inventory for the month using the retail method of inventory costing.  Alternatively, if you have an established history of knowing your cost of goods sold %, you can use that to establish your cost of goods sold for each period end.

     

    It may seem a little confusing at first (it did for me at least) but after studying it and doing it a few times, it will become easier.  This is great stuff to know if you're going to be entering EOM numbers.  I would venture a guess that almost all bookkeepers do not know how to do this so you'll be way ahead.  Good luck and feel free to ask any further questions.  

    N
    NotANumbersGalAuthor
    January 12, 2022

    Thank you for such a quick response! 

    I am looking at how the inventory is set up. I can't wrap my mind around how to do it without entering all items that were in inventory last year and then entering each sale. Wouldn't it be possible to use an asset account tracking the money in inventory. Then, use a COGS account for the total of the month's sales. Bypassing Quickbooks inventory setup.  Does that make sense? Sorry. I get the concept of all of this. I'm just not very good at using the terms.

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