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

I am having the exact same issue. We need to be able to know what's on SO and deduct it form inventory so we don't oversell the inventory. 

I also use QB online and don't seem to find that options. Any help with this is more than welcome

QB Online doesn't have Sales Order functions or tracking and reporting. The best you can do is use Estimate, and manage the Estimate reporting against inventory status.

Hello @Pipe3001,

Thanks for joining the Community. I'm here to assist you with your concern about Sales Orders.

Right now, creating a Sales Order is only available in the Desktop version of QuickBooks. Since this is a non-posting transaction, you can use an Estimate as an alternative option.

The inventory count is affected when you apply an Estimate to an Invoice or Sales Receipt. You can create an Estimate template and rename it from Estimate to Sales Order.

Here's how:

1. Click the Gear icon.
2. Select Custom Form Styles.
3. Click New style to create a new template.
4. Or click edit to open an existing template.
5. Go to the Content tab.
6. Click the pencil icon in the upper-right corner.
7. Below Form, change the name to Sales Order.
8. Click Done.

To learn more, you can visit this article: Estimates/Quotes: setup and function.

I also encourage you to send feedback requesting that this feature be available in the future. A feature that's essential to your business is what matters, so please submit this request by clicking the Gear icon and selecting the Feedback option.

If you have further questions, feel free to post a comment below. The Community is here anytime you need help.

once you create invoice the inventory is reduced

is inventory reduce once invoice is created

Let me welcome you to QuickBooks Community, @tim622.

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. 

I cannot find how to track inventory for items needed on ESTIMATES. I have been looking for months. I need it to work JUST LIKE the way it works for invoices. By item # and show the customer name. If you have used this reporting for ESTIMATES - pleas explain how. We needed to make sure we have enough inventory to cover estimates. Thanks

Providing the best experience with the product is what we aim for, daxd.

I know how beneficial it is to your business to track the inventory for items needed on estimates. However, this option is unavailable in QuickBooks. Once you create an estimate, your inventory will not drop down since Estimate is a non-posting transaction.

On the other hand, we can run the Custom Transaction Detail report and customize it to inventory items and customers' names. Here's how:

1. Go to Reports on the top menu.
2. Click Custom Reports.
3. Choose Transaction Detail.
4. Tick Customize Report tab.
5. Tap Filters.
6. Enter Transaction Type in the Filter field and choose Estimate.
7. Type Item in the Filter field and the inventory items.
8. Type Name in the Filter field and select the customers' name.
9. Press OK then OK.

On the other hand, you'll want to look for a third-party application that can help you track the inventory on the estimates to make sure you have enough inventory items to cover estimates. Just go to this link: https://desktop.apps.com/home. Then, choose an app that is compatible with QuickBooks. 

Feel free to visit these blogs for any upcoming QuickBooks updates and enhancements:

• QuickBooks Resource Center
• The QuickBooks Blog

I'll be right here to continue helping if you have any other concerns or questions about QuickBooks. Assistance is just a post away. You have a good one. 

i have about 1000 inventory items in QBD . i never sell anything. i am a contractor that buys items for a job and i assign the items to a job when i purchase the items or on the purchase order.

how do i "remove" the items from inventory once they are used on the job?

when i invoice for the job i make no mention of the items i invoice for % complete,

I can help you with removing those items from your inventory, @ciromangione. 

You can hide these items if you no longer use them. You can't delete items that we're used in a transaction. 

Check the following steps:

1. Go to the Lists menu and proceed to Item List.
2. Double-click the item you want to hide.
3. In the Edit Item window, select Item is inactive.
4. Click on OK.

These items will now be removed from the list but not from your QuickBooks records. You can also make it active again at any time. Refer to this article for more information: Add, edit, and delete items.

In case you just need to adjust the quantity or total value of your products, see this article for detailed guidance: Adjust your inventory quantity or value in QuickBooks Desktop.

I've got you an article that will give you an overview of how to resolve inventory issues in case you'll encounter any: Common QuickBooks inventory accounting mistakes.

I always want to make sure you have the information you need. Let me know if you need more help with your items and or anything else by leaving a reply below. Take care and have a wonderful day!

moved

How about a situation where I Received the Inventory with Bill (2 cans of spray paint for example), created the Sales Order, then Created the Invoice directly from the Sales Order...and expecting the 2 cans to be removed from inventory...however they are still in inventory?

Note that in this example, the 2 cans of spray paint were the only 2 that I ever purchased for my customer so these 2 cans (still in inventory after creating the Invoice) stick out like a sore thumb.  Additionally; it makes me wonder if all of my inventory items are off??

What say you?

Thank you!!

Let's get your inventory item quantities updated in QuickBooks Desktop (QBDT), @Peak Performance Coatings.

QBDT updates inventory quantities and value as you track every purchase and sale. When you receive the inventory (i.e., 2 cans of spray paint) with the bill, the quantity should automatically be reduced after creating an invoice directly from a sales order.

With this, I'd first recommend checking the items you used in your sales order and invoice. Once the items linked to the transactions are correct, you may have minor data issues with your company file. To fix this, I'd recommend utilizing the system's Rebuild and Verify Data built-in tools. Here's how:

1. Go to the File menu, then hover over Utilities and select Rebuild Data.
2. On the QuickBooks Information window, select OK. Follow the onscreen steps to save a backup.
3. Let the tool repair your file. 
4. When the tool finishes, select OK.
5. Go to the File menu. Then hover over Utilities and select Verify Data.
6. Let the tool check your file for data issues.

To know other recommend solutions for possible data issues with your company file, you can refer to this article: Fix data damage on your QuickBooks Desktop company file.

In case the quantities of your inventory items still show off after performing the steps above, you can manually adjust them to keep their status accurate. For the step-by-step guide, I'd recommend checking out this article: Adjust your inventory quantity or value in QuickBooks Desktop.

Then, I'd recommend pulling up the inventory report you need (i.e., Inventory Stock Status by Item) to monitor your items and their quantities accordingly. Go to the Reports menu and select  the Inventory option.

Additionally, to guide you further in managing your inventories along with the growth of your business using QBDT, I'd recommend checking out this article: QuickBooks Help Articles. It also includes topics about account management, banking, and expenses and vendors, to name a few. You can even explore video tutorials to learn your way around the product.

Please don't hesitate to keep me posted on how it goes in the comments below. If you have other concerns about managing your inventory items and sales transactions in QBDT, I'll gladly help. Take care, and I wish you continued success, @Peak Performance Coatings.

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

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!

@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. 

Thanks for getting back to us and sharing additional details of your concern, @Bspatt69.

The added parts of your sales transactions and how inventory numbers will show depends on your accounting method. There are two types of accounting methods in QBDT the Accrual Basis and Cash Basis. 

To learn more about the difference between Cash and Accrual basis, you can check out this article: Differentiate Cash and Accrual basis. This way, you'll have an idea where those sales transaction will be connected and how inventory numbers will show in the report.

Also, you can set your company preference to Accrual or Cash as your report basis. This way, your report will default to it when pulling it up in the Reports menu.

1. Go to the Edit menu.
2. Select Preferences.
3. Click Reports & Graphs, then go to the Company Preferences tab.
4. In the Summary Report Basis section, select Accrual or Cash.
5. Select OK.

Feel free to open this guide to further assist you in managing your customer's transactions: Get started with customer transaction workflows in QuickBooks Desktop.

You're always welcome to comment here if you have other concerns. We're here 24/7 to help you in any way. Stay safe and more power!