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Highlighted
Level 2

Inventory Issue

I am new to Quick Books and am not an accountant in any way shape or form.  We started a new project in our business in which we are bringing in inventory to package for our customer.  The way I was doing inventory was by just changing the quantity when we got new stock in.  Our accountant says that's the wrong way to do it and I should enter our purchase orders, which will propagate our inventory and our invoices will then remove it.  So in doing it my way it has completely messed with our inventory shrinkage and cost of goods sold...I think.  When you look at our profit and loss statement our cost of goods sold is in the millions and that is not even a little bit right.  It should only be in the 10's of thousands.  How do I fix this?  Can I wipe this clean and start it all over again?  Part of the inventory has been invoiced and paid for already, so I don't want to screw it up even more.  I need serious help.

 

Thanks, Tracy

Solved
Best answer August 18, 2020

Best Answers
Highlighted
QuickBooks Team

Inventory Issue

I appreciate the complete details you've shared about your concern, @Tracy.

 

The ability to track the item you buy by bulk then sell it by as finished goods in a small packet is currently not available in QuickBooks. In the meantime, you can visit our QuickBooks App center and check for a suitable third-party app.

 

Here's how:

  1. Go to the Apps menu.
  2. Type in the keyword "Advance Inventory" in the search box.

On the other hand, QuickBook automatically lets you know when something's running low if you set a reorder point to your products.

 

I encourage you to visit this article to learn more about how to track your inventory in QuickBooks Online: Set up and track your inventory in QuickBooks Online. It also contains information that will help you in restocking your inventory and generating reports to check the status of your inventory.

 

As always, you can count on the Community if you need help in managing your inventory. Assistance is just one post away.

View solution in original post

4 Comments
Highlighted
QuickBooks Team

Inventory Issue

It’s nice to see you in the Community, TBusyn.


Thanks for being detailed about your concern. It gives me a better overview of what’s happening to your inventory. Allow me to share some information about tracking inventory and assist in keeping your records in order.


QuickBooks Online can help manage your inventory. It tracks what's on hand, gets alerts when it’s time to restock, and see insights on what you buy and sell. Entering a quantity adjustment breaks the asset value of the products. To keep your data correct, delete the adjustments.

 

  1. Tap the Search icon at the top bar and hit the Advanced Search link.
    inv ad.png
  2. Press the Search drop-down to choose Inventory Quantity Adjustment and click Search.
    inv ad.1.png
  3. From the results, pick the adjustment you need to delete.
  4. This will take you to the Inventory Quantity Adjustment page.
  5. Navigate to the bottom of the page and press the Delete option and pick Yes to confirm the action.
    inv ad3.png

Now that we’ve removed the adjustments, make sure to input what you receive from your vendors. There are two ways to accomplish this task in QBO.

 

  • Create a bill from the purchase order if you’ll pay your supplier later.
  • Create a cheque or an expense from the purchase order if you paid your supplier on the spot.

Here's how:

 

  1. Tap the New menu in the upper left and choose any of the following: Expense, Check, or Bill.
  2. Click the Vendor drop-down to select the payee.
  3. This will display the Add to Bill window. Depending on the transaction you created (Expense or Check).
  4. Press the Add link on the corresponding purchase order.
  5. The items from the purchase order are then added on the first available line under the Item details section.
  6. Fill in the field boxes and hit Save and close.
    pobill.png pobill.1.png

Performing this process lets the program know that you restocked. Then, QuickBooks increases the quantity on hand by the number of items you received. If you’ve created a bill, make sure to enter a bill payment to track the entry into your account.


To keep track of what you sell, you can continue creating an invoice or add a sales receipt for cash transactions. QuickBooks Online will decrease what’s on hand by the amount on the invoice or sales receipt.


These steps will get you going in the right direction tracking your inventory. I’m also adding some resources to help effectively manage the products you buy and sell. You’ll find instructions on how to create and send a purchase order, input goods received from suppliers, and other inventory processes.

 

Reach out to me if you need some help when using the Inventory feature. I’ll be glad to lend a helping hand. Enjoy the rest of the day.

Highlighted
Level 2

Inventory Issue

I have another question regarding the inventory and how we count it, so let me give you some background.  We are a manufacturers rep agency.  One of our larger customers is buying screws from one of our manufacturers.  The manufacturer can't get the screws packaged for the customer the way they want so we have taken over the packaging of the screws.  We order bulk screws from our manufacturer, package them in the clam shell sizes the way the customer wants them, and then we sell the finished clam shells to them.  When we get the screws in they are in bulk boxes.  Right now when I count the inventory I count them by the number of clam shells we package from the bulk quantity, not by the bulk quantity.  What my boss would like to have happen is that we intake them by the bulk number, and then once they have been packaged show the clam shells as finished goods, and then invoice the finished goods.  Is there a way to do that?

 

Thank you, Tracy

Highlighted
QuickBooks Team

Inventory Issue

I appreciate the complete details you've shared about your concern, @Tracy.

 

The ability to track the item you buy by bulk then sell it by as finished goods in a small packet is currently not available in QuickBooks. In the meantime, you can visit our QuickBooks App center and check for a suitable third-party app.

 

Here's how:

  1. Go to the Apps menu.
  2. Type in the keyword "Advance Inventory" in the search box.

On the other hand, QuickBook automatically lets you know when something's running low if you set a reorder point to your products.

 

I encourage you to visit this article to learn more about how to track your inventory in QuickBooks Online: Set up and track your inventory in QuickBooks Online. It also contains information that will help you in restocking your inventory and generating reports to check the status of your inventory.

 

As always, you can count on the Community if you need help in managing your inventory. Assistance is just one post away.

View solution in original post

Highlighted
Level 13

Inventory Issue


@TBusyn wrote:

What my boss would like to have happen is that we intake them by the bulk number, and then once they have been packaged show the clam shells as finished goods, and then invoice the finished goods.  Is there a way to do that?

@TBusyn 

You may need a 3rd party app to do so.

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