Question

Receiving Inventory

Forum|Forum|3 years ago
September 2, 2022
1 reply
0 views

Simple question I hope. We raise both sheep and cattle. I just bought some alfalfa hay that will mostly be fed to the sheep, but some may go the cows. I want to track the costs to each species. So, if I enter that hay into inventory, what type of item is it, inventory part or non-inventory part (or something else)? Then, as I feed it out how do I track it?

TIA

QuickBooks Desktop

AlcaeusF

Level 14

Hi, @klong82

I'm here to provide details about tracking inventory in QuickBooks Desktop (QBDT).

For your first question, since you don't resell the hay, you can choose the Non-Inventory Part as the Item Type. Here's how to do it:

In QBDT, go to the Lists menu at the top, then Item List.
On the Item List window, select Item, then New.
Choose Non-Inventory Part as the Item Type.
Enter the other necessary information in the desired fields.
Hit Save to complete.

For more information about managing and entering new inventory in QBDT, consider checking out this article: Add, edit, and delete items.

For the second question, you can process an inventory adjustment (quantity on hand). This is how you track the decrease or increase in product quantity that isn't a sale or purchase.

For the detailed steps on how to do it, please refer to this article: Adjust your inventory quantity or value in QuickBooks Desktop.

I also recommend visiting our website for more tips and other resources you can use in the future: Self-help articles.

Please let me know if you have more questions about inventory or anything else QuickBooks by leaving a comment below. I'll be here to answer them. Keep safe.

M

Mikes124

If we track our inventory, then do we always have to use a purchase order when we purchase inventory? Can we skip the PO, and just add a bill with the part numbers in the bill?

Bryan_M

QuickBooks Team

Yes, @Mikes124, you can skip creating a Purchase Order (PO) when tracking your inventory. Let me have a thorough explanation of this.

PO is a non-posting transaction. This means it won't affect your inventory even if you send it to your vendor. The sole purpose of this transaction is to let them know what product, the quantity you'll purchase, and the possible amount to be paid.

Once you convert it to a Bill transaction, the product will automatically be added to your inventory.

On the other hand, you can directly create a Bill instead of a PO if you and your vendor know the number of products being ordered, the total cost, and the expected delivery date or if you have already received the items.

For future reference, check out this article if you've received a refund from your vendor: Record a vendor refund in QuickBooks Desktop.

As soon as you have queries about tracking inventory in Quickbooks. Let us know in the Community. We're eager to assist you in any way we can. Stay safe, and we hope you have a fantastic day.

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