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ervin_chua21
Level 1

I just Started. I added a new product for sale in my retail business. Should its account be Inventory or Inventory Asset? what's the difference between the 2?

 
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Best answer December 03, 2019

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vpcontroller
Level 11

I just Started. I added a new product for sale in my retail business. Should its account be Inventory or Inventory Asset? what's the difference between the 2?

@ervin_chua21 

 

The key here is to select the correct Account Type and Detail Type in order to track inventory.

For creating inventory asset tracking in QBO, here is the right way to create a new account in the Chart of Accounts.

Account Type = Other Current Assets

Detail Type = Inventory

Name = Inventory Asset (this is the default name QBO creates it). Better to keep it that way.

 

Hope this helps!

 

Inventory Asset Account

 

View solution in original post

1 Comment 1
vpcontroller
Level 11

I just Started. I added a new product for sale in my retail business. Should its account be Inventory or Inventory Asset? what's the difference between the 2?

@ervin_chua21 

 

The key here is to select the correct Account Type and Detail Type in order to track inventory.

For creating inventory asset tracking in QBO, here is the right way to create a new account in the Chart of Accounts.

Account Type = Other Current Assets

Detail Type = Inventory

Name = Inventory Asset (this is the default name QBO creates it). Better to keep it that way.

 

Hope this helps!

 

Inventory Asset Account

 

View solution in original post

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