How do I set up a physical inventory and have it deducted as product is sold?
I'm glad to see you here in the Community, @jcartire.
Let's enable the Inventory feature of your QuickBooks Desktop account, so you can start tracking the list of products. Here's how:
Go to the Edit tab and select Preferences.
Choose Items & Inventory,thenclick on Company Preferences.
Put a checkmark on the Inventory and purchase orders are active box.
Once done, start setting up the inventory items you are selling in the Item List window.
From the Lists tab, choose the Item list.
Right-click anywhere and press New or Ctrl+N.
In the Type drop-down arrow, select Inventory Part.
In the Item Name/Number field, enter the name of the item.
Select an Income Account for your sales.
Enter the quantity in the On Hand field.
Complete other fields, as needed, and click OK.
Now you're ready to record your sold products. Perform the steps on how to do it:
In the Customers tab, select Create Invoices or Enter Sales Receipts.
Select a Customer and enter the purchased product in the Item column.
Add the quantity to decrease the inventory.
Lastly, press Save and Close.
To track your sales trend, there are available reports in the program available for you. I'm enclosing this article to guide you on how to generate sales reports in QuickBooks Desktop: Pull up Sales Report.
Don't hesitate to leave a comment below if you have additional questions. I'm always here to help you. Have a fantastic day!