cancel
Showing results for 
Search instead for 
Did you mean: 
ck52
Level 1

Inter-company Transfers

My company has multiple locations, each store is it's own entity but they are very much intertwined. We do a lot of inventory transfers between the stores and I'm not sure how to record that. Originally I thought we should create invoices for each transfer and the company receiving said transfers would write a check at the end of the month. The problem with this however is that Company A ends up owing Company B say $800 while Company B owes Company A $750..

What is the best way to record transfers like this ? 

3 Comments 3
IamjuViel
QuickBooks Team

Inter-company Transfers

It's great to see you here, @ck52.

 

I'd be delighted to help walk you through in tracking your inventory transfers in QuickBooks Desktop.

 

For starters, you'll need to turn on Advanced Inventory for you to track inventory stored from different store locations.

 

Here's how:

  1. Go to Edit.
  2. Choose Preferences.
  3. Select Items & Inventory.
  4. Under Company Preferences, put a check mark on Inventory and Purchase Orders are Active box.
  5. Go to Advanced Inventory Settings.
    • If it is grayed out, sync your  license data online so that QuickBooks will recognize it.
      1. Click Help.
      2. Choose Manage my License.
      3. Select Sync License Data Online.
    • Close and re-open QuickBooks to make sure all components are updated.

Once advanced inventory is turn-on, follow the steps below in setting-up inventory sites. Here's how:

  1. Create site list.
    1. Click Lists.
    2. Select Inventory Site List.
    3. Choose the Site button.
    4. Click New.
    5. Type in the appropriate information.
    6. Follow the Steps 1 to 3 until all your sites are set up.
  2. Convert from your previous method of tracking inventory site.
  3. Set reorder points for each site.
  4. Transfer opening quantities of items to each site.
  5. Add a site column to your printed sales and purchase forms.
  6. Add a site column to memorized transactions that include inventory.

If you need further help with the steps above, I’d suggest contacting our Customer Care team. A specialist will be able to look up your account securely and further assist you via remote access session.

 

Here’s how to contact us:

  1. Go to: https://help.quickbooks.intuit.com/en_US/contact.
  2. Choose your QuickBooks Product.
  3.  Select your QuickBooks version.
  4. On the Contact Us page, click a topic.
  5. Click on the Get Phone Number button to see the support number.

Please don’t hesitate to click the Reply button if you have other question about tracking your inventory transfers in QuickBooks Desktop. I’m always here to help.

anything2
Level 1

Inter-company Transfers

Thank you so much for your help. I think my use of the word 'inventory' may have been misleading. We don't want to use QB to process inventory or keep track of inventory levels in that way. I think invoicing would be more appropriate. Each store is invoicing other locations and I need to keep track of the dollar amounts going and coming out of each store. I had wanted to cut checks from each store at the end of the month/quarter for the amounts owed, but it doesn't really make sense to do all that as one store would owe the other almost as much as that store owes them. Would it best to do a 'loan to' for each transaction?

HoneyLynn_G
QuickBooks Team

Inter-company Transfers

Hi there, @anything2.

 

Thank you for choosing QuickBooks as your accounting partner. I'd be happy to introduce to you the class tracking feature in QuickBooks.

 

This feature is convenient to track the locations of the transactions in your business. Here's how:

  1. Click Edit.
  2. Choose Preferences.
  3. Select the Accounting tab.
  4. Go to the Company Preferences tab.
  5. Put a check mark on the Use class tracking for transactions box.
  6. Select the appropriate setup.
  7. Click OK to save changes.

 

Whenever you create a transaction, there will be a designated Class field. Click Add New if there's no class yet. 

 

For additional insights, please check this blog: How to Use Class Tracking in QuickBooks. Once you follow this process of recording your transactions, you can customize reports by class (location).

 

That should do it. Let me know if you have additional concerns or questions. I'm still here to help you further. Have a wonderful day ahead!

Need to get in touch?

Contact us