I set up my inventory assets but where do I put the transaction from my bank account? In the Inventory account? (There is inventory assets and inventory)

@ h.quinn

check your settings

gear>settings>company settings
sales>products & services
and turn on qty tracking (inventory)
and
in company settings>expenses>bills & expenses turn on the items table and purchase orders. 

When you enter an expense or bill, about half way down the left side is a title "item Details" click that and a table opens where you can select the item, qty and item total cost for purchasing inventory

then see the pic for a new inventory item set up

Hi,

I am just starting my busines, so I am using QBO simple start, but plan on moving to QBO Plus as my business does become more profitable.

I was wondering if I could use Inventory Assets instead of creating an asset account called Purchases, and at the end of the month I would

debit COGS for the cost that I pay for the products
credit Inventory Assets for that value.

Also, I have Inbound shipping expenses and tarifs.  Should I include those as part of Inventory Assets?

Thanks,

Rob

I have the same question. I have QBO Plus. When I enter the product items in expense I would like to use other expense account however it gives me an error asking me to use another account. I’m using another account when I buy my inventory and use a debit card. How do I do this? Thanks

Hi Jshoplist,

I'll help you check to see why you're prompted to use another account when creating an expense transaction.

In an expense transaction, you can use a bank, credit card, a debit account in the Payment account field. In the Category table, you can select any expense account as well. In the Item details table, you can add an inventory item. Also, you can use both an expense account and an inventory item in an expense transaction at the same time.

You can try adding another expense account to see how it goes. If you can save the transaction without an error, you can check the details of the other expense account that you tried to add.

It would be best if you can send a screenshot of the transaction, the details of the account and the items that you want to use.

Thank you in advance.

Please see attached. My main currency is not USD however for this transaction it is in USD. The balance you see was entered via Journal Entry. Thanks.

Oh! Thanks for the screenshot, Jshoplist.

I can see that your Payment account is an Other current assets account. That's the reason why you're prompted with the error. In that field, you'll want to select a credit card, a petty cash account or a bank account to save the expense.

If you want to use the funds from the Other current asset account, you can move it to a petty cash or a bank account first. The movement can be achieved via journal entry, but please have it verified your accountant to make sure your records are accurate. After moving, use the petty cash or bank account in the expense transaction. 

If there's anything that I cab help you with your expense transaction, please let me know.

Great! Thank you

Hello,

This is an interesting thread. I have a somewhat similar issue thats confusing me. 

When I buy goods/inventory I send advance payments for the order. It takes about 4-6 months for the stock to reach me which is when I usually create a Supplier Bill and enter the input of inventory. 

My issue is as follows. 

1. I've created an asset account for my supplier. When I make a deposit it goes to this account. 

Type: Current Assets

Detail: Inventory 

2. When the goods arrive as explained above I create a Supplier Bill. 

3. My issue is now when I want to make a payment for these goods. I've already paid for them and the finances is detailed in the Asset Account for my Supplier. However I cannot seem to find any way of assigning those funds accumulated to the goods already received which are already paid for. 

Any help/pointers much appreciated. 

Thanks everyone