cancel
Showing results for 
Search instead for 
Did you mean: 
ervin_chua21
Level 1

I just Started. I added a new product for sale in my retail business. Should its account be Inventory or Inventory Asset? what's the difference between the 2?

 
Solved
Best answer December 03, 2019

Best Answers
vpcontroller
Level 11

I just Started. I added a new product for sale in my retail business. Should its account be Inventory or Inventory Asset? what's the difference between the 2?

@ervin_chua21 

 

The key here is to select the correct Account Type and Detail Type in order to track inventory.

For creating inventory asset tracking in QBO, here is the right way to create a new account in the Chart of Accounts.

Account Type = Other Current Assets

Detail Type = Inventory

Name = Inventory Asset (this is the default name QBO creates it). Better to keep it that way.

 

Hope this helps!

 

Inventory Asset.PNG

 

View solution in original post

1 Comment 1
vpcontroller
Level 11

I just Started. I added a new product for sale in my retail business. Should its account be Inventory or Inventory Asset? what's the difference between the 2?

@ervin_chua21 

 

The key here is to select the correct Account Type and Detail Type in order to track inventory.

For creating inventory asset tracking in QBO, here is the right way to create a new account in the Chart of Accounts.

Account Type = Other Current Assets

Detail Type = Inventory

Name = Inventory Asset (this is the default name QBO creates it). Better to keep it that way.

 

Hope this helps!

 

Inventory Asset.PNG

 

Sign in for expert help
Ask questions, post replies & join our community of QuickBooks users.

Need to get in touch?

Contact us