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When does QB take item out of inventory--when sales order is created, or when invoice is finalized?

Forum|Forum|7 years ago
December 11, 2018
4 replies
22 views

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QuickBooks Desktop

Best answer by VivienJ

I'd be gald to help!

Using an inventory item on a Sales Order or an Estimate doesn't affect your inventory count since these are non-posting transactions. Your inventory count is affected once the Sales Order or Estimate is converted into an Invoice or Sales Receipt.

I hope this will clear it up for you. Stay in touch with us if you need more help.

V

VivienJAnswer

Hey there sulnotions,

I'd be gald to help!

Using an inventory item on a Sales Order or an Estimate doesn't affect your inventory count since these are non-posting transactions. Your inventory count is affected once the Sales Order or Estimate is converted into an Invoice or Sales Receipt.

I hope this will clear it up for you. Stay in touch with us if you need more help.

A

AmyMc

I have inventory items we sell but we also order and drop ship to other distributors. When I selected drop ship option, IS THE inventory coming out of my warehouse inventory??

ShyMae

QuickBooks Team

Hi there, @AmyMc.

For me to better assist you, can you please provide me with more details of your concern? I want to give you the most accurate and relevant advice and information

Specifically, I'd like to know if you're using QuickBooks Desktop or Online. If possible, could you please send me a screenshot of your concern?

Please let me know through the reply button. I'd be more than happy to assist you.

A

Arif3

is inventory reduce once invoice is created

R

ReymondO

Moderator

Let me welcome you to QuickBooks Community, @Arif3.

I'll share with you some insights on why creating an invoice directly affects your inventory.

Invoices track the sale of a product for inventory control, accounting, and tax purposes, which help keep track of accounts payable. While inventory is the product that you track when buy or sell an item.

Once you create an invoice, your inventory will be reduced according to the quantity that you've used in the sales transaction. These two are directly proportional to each other. Every time you use your inventory item on sales, the amount on its quantity will decrease.

To successfully track inventory and know more about how QuickBooks handles inventory assets, please check out this article: Understand inventory assets and cost of goods sold tracking.

I'll be around if you need further help in managing your company file in QuickBooks. Just place your comment down below and I'll get back to you. Have a great weekend and keep safe.

S

summerimex

Does the date affect this- i.e., if an invoice is dated for yesterday, does the inventory get taken out as of yesterday? or is this determined by the ship date? We have preorders for items that were prepaid and so need to be invoiced but the items themselves have not actually left inventory (which would leave us with a negative qty). Is there a way for QB to take this into consideration? (money coming in at a certain date, and inventory leaving at a different date) Or are we just stuck with negative inventory?

S

shioban

Hello, Question if I go and delete a customer invoice that has not been paid, does the parts used go back into inventory?

MJoy_D

QuickBooks Team

Hello, @shioban.

I can share some information about deleting an invoice in QuickBooks Desktop.

Yes, once you've deleted an invoice, inventory items that you've added to the invoice will automatically go back to your inventory.

To delete the invoice, open the invoice that you'd like to delete. Then, click on the Delete icon from the Main tab of your Create Invoices window.

For more information about creating an invoice from a sales order and estimate, refer to this article: Create an invoice in QuickBooks Desktop.

Once you're done, you can go to the Inventory menu and then click on the Item List to check your inventory items. See this article for more information: Add, edit, and delete items.

You may also consider turning on Advanced Inventory if you need to track inventory stored at different sites or locations. Check this article for more information: Set up Advanced Inventory.

I'm always here if you still have questions about your invoices and inventory. Let me know by leaving a reply below. Have a great rest of the day!

B

Bspatt69

@MJoy_D

We use QB enterprise. We have inventory. We use Sales Orders, invoices, estimates everything. Sometimes in service our sales orders are turned into invoice before the job is actually done. So in the next month they might add parts to the invoice/sales order. So my question is.....we pay commission to our guys, if the invoice is dated in January but they added parts to it in April will those parts added be in April numbers or still connected to January numbers? And, will the invoice total for daily sales numbers be reflected in January or in April? And when will they will be taken out of inventory? If I run a report for January will they show being taken out then or in April's inventory numbers? Thank you so much.

J

JoyceP2022

What about Pending invoices? Is there away to run a report on inventory that does not reflect materials that have already been pulled onto Pending invoices?

M

Mich_S

Level 5

I see you want to run an Inventory report that doesn't display items taken out for pending invoices, @JoyceP2022.

Regardless of whether an invoice is pending, the quantity of the Products and Services item will be deducted as soon as it is created. As a result, the report you'd like to access is currently unavailable in QuickBooks Desktop.

I tried customizing the report but still, the item added to the open invoice is taken out from its total quantity.

Furthermore, you can run the Customer Balance Detail report if you need to know the customers' transactions status. Simply go to the Reports menu, then select Customer & Receivables and open Customer Balance Detail.

Lastly, you can browse these handy modules once everything is good on your end. These help manage invoices and keep the account balances in order.

You can always get back to us if you need any more help with this and/or the software in general. We're here to assist 24/7. Keep safe.

BigRedConsulting

Level 15

@Mich_S

RE: Regardless of whether an invoice is pending, the quantity of the Products and Services item will be deducted as soon as it is created.

That is incorrect.

Pending invoices ans sales receipts do not impact inventory reports.

Which you would know had you actually tried to see if you could get them to do.

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