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diegoborgh
Level 1

Quickbooks for Mac - Need help setting up inventory system

I apologize, I'm not that experienced with QB.

I don't normally sell physical items, I sell services.

But one service I had to add, requires the assemble of several items (hard drive, enclosing case, carrying case)

When I buy these items, how do I enter those in QB for Mac, and how do I combine those into one final assembled unit?

Should I enter as inventory? Sometimes I order these items when I have a sell order, so I don't normally carry in stock.

 

Thank you!

Solved
Best answer September 03, 2020

Best Answers
MichelleBh
Moderator

Quickbooks for Mac - Need help setting up inventory system

 Hi there, @diegoborgh.

 

It's my pleasure to provide the difference between Inventory and Non-Inventory in QuickBooks for Mac.

 

Inventory- refers to goods that are in various stages of being made ready for sale. 

Non-inventory- these are items that the business does not sell but are required for internal operations.

 

Since you don't normally carry a stock, I suggest recording the item through Non-inventory. 

 

Heres' how: 

 

  1. Go to the List located on the upper left side, then choose Items. 
  2. On the Item List window, select the (+ )or New tab. 
  3. Pick the type of item, then complete the required information. 
  4. Hit Save

 

Once done, you can now create a group item so you can combine those items in one assembled unit in QBDT. Please note that you're unable to reverse it once you merge the two items in QBDT.

 

Let me guide you how:

 

  1. Go to the Lists tab, then choose Items.
  2. Right-click the item, then select the Edit item button.
  3. Modify the item name to the same name as the item you're combining it with. 
  4. Hit OK, then Yes, to merge the two items. 

For the detailed guide, please visit this link: Add, edit, and delete items.

 

For future reference, I suggest visiting this website: QuickBooks Desktop for Mac. This link contains step-by-step instructions about effectively managing your account, invoices, income, expenses, banking, and inventory. 

 

Let me know if you have follow-up questions by hitting the Reply button below. I'm always here to help. Have a great day!

View solution in original post

7 Comments 7
MichelleBh
Moderator

Quickbooks for Mac - Need help setting up inventory system

 Hi there, @diegoborgh.

 

It's my pleasure to provide the difference between Inventory and Non-Inventory in QuickBooks for Mac.

 

Inventory- refers to goods that are in various stages of being made ready for sale. 

Non-inventory- these are items that the business does not sell but are required for internal operations.

 

Since you don't normally carry a stock, I suggest recording the item through Non-inventory. 

 

Heres' how: 

 

  1. Go to the List located on the upper left side, then choose Items. 
  2. On the Item List window, select the (+ )or New tab. 
  3. Pick the type of item, then complete the required information. 
  4. Hit Save

 

Once done, you can now create a group item so you can combine those items in one assembled unit in QBDT. Please note that you're unable to reverse it once you merge the two items in QBDT.

 

Let me guide you how:

 

  1. Go to the Lists tab, then choose Items.
  2. Right-click the item, then select the Edit item button.
  3. Modify the item name to the same name as the item you're combining it with. 
  4. Hit OK, then Yes, to merge the two items. 

For the detailed guide, please visit this link: Add, edit, and delete items.

 

For future reference, I suggest visiting this website: QuickBooks Desktop for Mac. This link contains step-by-step instructions about effectively managing your account, invoices, income, expenses, banking, and inventory. 

 

Let me know if you have follow-up questions by hitting the Reply button below. I'm always here to help. Have a great day!

diegoborgh
Level 1

Quickbooks for Mac - Need help setting up inventory system

Thank you so much for this detailed answer! I never got the notification that someone replied so I apologize for the delay.

BrynnCap
Level 1

Quickbooks for Mac - Need help setting up inventory system

I have inventory (finished goods) and non-inventory (raw materials used to make finished goods), but when I do my P&L my COGS includes my materials, labor, freight and COGS of inventory sold. That doesn't seem right. What am I doing wrong?

BrynnCap
Level 1

Quickbooks for Mac - Need help setting up inventory system

I am having issues in my P&L with my inventory (finished goods) and my non-inventory (raw materials) . Not sure I entered the correct accounts in my inventory since on my P&L the COGS is showing as Materials, Labor, Fright and the COGS of inventory sold. What am I doing wrong?

JessT
QuickBooks Team

Quickbooks for Mac - Need help setting up inventory system

Hi BrynnCap,

 

If you assigned the COGS account in the Expense account field or Cost of Goods Sold field of your items, then they will be reported under COGS in your P&L when you sell those items.

 

First of all, please back up your company file because we'll be editing transactions and items to correct your records.

 

If you don't want to use COGS on some of your items, you can edit them and assign a different expense account. However, this will only take effect going forward. Therefore, if there are purchase or expense transactions using those items, you need to delete and recreate them after changing their expense or COGS accounts. That way, the new accounts will be used in those transactions and they'll be reported accordingly in the P&L. You can do this one item at a time, and run the P&L as you create changes.

 

Feel free to reach back out if have more questions about your transactions.

BrynnCap
Level 1

Quickbooks for Mac - Need help setting up inventory system

Thanks so much for your response!

 

But I am still a little confused on what you are saying. I am a maker of goods, so my inventory items cost is a total of the labor, raw materials, etc in one place. So my P&L shows my material costs, labor fees, etc. as an expense, but when I sell my inventory it also shows up on my P&L under COGS too. So it came out as an expense vs just taking the $ out of my inventory assets. So I don't want it associated with an expense account, do I?

 

Were you able to vs the image I attached?

MariaSoledadG
QuickBooks Team

Quickbooks for Mac - Need help setting up inventory system

Let me elaborate some details about inventory items showing with an expense account, BrynnCap.

 

Cost of Goods Sold (COGS) is an expense charged against sales to work out a gross profit. This amount includes the cost of the materials and labor directly used to create goods. Since you are using COGS to track the product that you sell, that's the reason why it is showing with an expense account when running the Profit and Loss report. You'll want to reach out to your accountant if you need additional information when tracking items to the correct accounts. This maybe also the best way to understand how this works in QuickBooks Desktop for Mac and guide you as you go along working with inventory.

 

To give you more details and helps you track profitability of your items, you can check out this article for your guide: Set Up Items For Tracking Costs and Revenue In QuickBooks Desktop for Mac. Aside from that, I've also added this article to help you get a clearer understanding about income and expense in QuickBooks: Income and Expense Items In QuickBooks.

 

You can always drop a reply below if you have any additional questions about inventory. We're always be right here to help you.

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