I need to enter a journal entry including an inventory item, but it isn't given by QBO as an option. How can I enter it in the Journal Entry?

Hello Verdickmoja,

Welcome to the QuickBooks Community! I would suggest following these steps, but this only work for the inventory asset account:

1. Create the journal entry by selecting +New and clicking Journal Entry.
2. Select Inventory Asset account and enter in the description the name of the inventory item.
3. Add the necessary information and save it.

However, I advise getting with your accountant to confirm that this would be acceptable for your business. If you don't have an accountant, you could connect with a ProAdvisor specialist. They offer a free consultation to businesses. Simply enter your zip code and search to find one near you. 
Keep me updated!

@SashaMC 

NO, you never ever us a journal entry for inventory items - It will not work and WILL mess up the balance sheet.

@verdickmoja 

Never use journal entry for inventory it will not work to affect qty or cost but will misstate the balance sheet amount for inventory asset.

QB is not a journal entry type of software.  Use the menus and forms, QB does the journal entry behind the scenes.

Journal entries should be the exception when using QB, they often do not work as you think they should, and  when you use inventory type items they never work for inventory. It is much better to use the forms on the home page the way QB is designed to be used.    Journal entries also bypass accrual/cash reporting, and will not show on many reports.

@verdickmoja 

@SashaMC 

"I need to enter a journal entry including an inventory item, but it isn't given by QBO as an option. How can I enter it in the Journal Entry?"

You can't. You never want to use a Journal Entry for product/service inventory items. You will need to follow the proper workflow for adding inventory items in QBO.

You can refer to this helpful article:

https://quickbooks.intuit.com/learn-support/en-us/set-up-inventory-lists/set-up-and-track-your-inven...

Hope this helps!

Hi there,

I am trying to bulk record my inventory quantities every month. I record all sales etc through a journal entry however that does no track/record my inventory. What is the best way to record inventory quantities?

Thanks!

Nice to have you joined this thread, Jaimee.

You can enter an Inventory Qty Adjustment to seamlessly record your inventory quantities. Let me show you how.

1. Sign in to your QuickBooks Online (QBO) account then go to the + New menu.
2. Select Inventory Qty Adjustment.
3. Enter the Adjustment Date.
4. In the Inventory adjustment account drop-down, select the appropriate account.
5. Select the products in the Product field. 
6. For each item, enter either a new quantity or a change in quantity.
7. In the Memo field, enter the details about the adjustment (optional).
8. Then click Save and close.

For more insights, you can also refer to this article: Adjust inventory quantity on hand in QuickBooks Online.

Moreover, I’m adding this link that can guide you on how to track your inventory efficiently: Set up and track your inventory in QuickBooks Online.

Keep in touch with me if you have other queries managing your inventories or with your account. I’ll be around ready to assist you. Keep safe!

Lets say I started using quickbooks in 2016. Before that I had many fixed assets in my asset account. Since journal entries dont allow us to associate previous amounts with fixed asset items how can we do this in quickbooks? We cannot enter a payment or bill anymore. It is in the past.

So, How can I register my Inventory?

I have different inventory software, how can I register it in QuickBooks if not with journal entry?

please let me know 

Hello, Guadalupe. Your successful inventory management is my top priority. I'll show you how to add or register items in QuickBooks. 
 

We can manually add your items to the system. Before we proceed, please know the inventory management feature is available for QuickBooks Online Plus and Advanced, allowing for efficient setup and tracking.
 

Let's enable this functionality so you can proceed with the registration or addition of your inventory.
 

1. Head to the Gear icon. Select Account and Settings.
2. Navigate to the Sales tab. Click Products and Services.
3. Tick the Show Product/Service column on sales forms.
4. Tun on both Track quantity and price/rate and Track inventory quantity on hand.
5. Hit Save, then Done.
    

Now, let's add your inventory items manually.
 

1. Hover over the Sales menu. Press Products & Services. 
2. Click +New, then choose Inventory. 
3. Complete the required details.
    

Please refer to the following article for detailed instructions on how to add product quantity, sales, tax, and purchasing information: Add inventory products in QuickBooks Online.

If you're not using the Plus and Advanced versions, consider upgrading your subscription to utilize the feature. Here's a step-by-step approach: 
 

1. Go to the Gear icon. 
2. Click the Subscriptions and Billing option. 
3. Hit Upgrade your plan in the Billed to You section.
    

If you want to transfer your products and services, check out this article: Import products and services into QuickBooks Online.

Moreover, you can generate a report that provides detailed information on your business's performance, including the number of products sold, revenue generated, and profit margins.

I am constantly available to provide assistance and ensure you receive the necessary support, Guadalupe. If you have additional queries with your inventories, click the Reply button below. Stay safe! 

@Guadalupe Monroy 

Are you just trying to the value of your inventory in QBO and not all of your products?  If so, you can make a journal entry that debits Inventory Asset and credits the appropriate account.  The appropriate account to credit depends on a number of factors but you can use Opening Balance Equity as a temporary account.  

Yes, but when I register the inventory through a journal entry my profit and loss is mixed up 

Yes, but when I register the inventory through a journal entry the profit & loss is mixed up

@Guadalupe Monroy 

"Yes, but when I register the inventory through a journal entry the profit & loss is mixed up"

The only way the journal entry will change your P&L is if the journal entry contains income or expense accounts.  Adding inventory value via a journal entry should be done with a debit to Inventory (asset account) and a credit to another non-income/expense account (unless you're trying to offset inventory to COGS).  You didn't answer the question in my previous post so I don't know what you're trying to accomplish - adding just inventory value, adding inventory items or adjusting your inventory value...

Hello Rainflurry!

Yes, we are trying to add only inventory value & also to offset inventory to COGS

The balance sheet shows the inventory value but the problem is in the profit and loss 

@Guadalupe Monroy 

I suggest you discuss this with your accountant as I'm still not understanding what you're trying to accomplish.  Increasing inventory reduces COGS, decreasing inventory increases COGS.  The journal entry to increase inventory value and decrease COGS is a debit to inventory and credit to COGS.  To decrease inventory and increase COGS, debit COGS and credit inventory.