fergy
Level 1
‎March 19, 2021 09:54 AM

Inventory Consolidation Question

Right now we have two inventory items (call them SKU1 and SKU2) that are bundled together to make a customer facing product (SKU3). We did this because SKU1 used to be leveraged for multiple products, but that is no longer the case. Now I would like to make SKU1 and SKU2 inactive and turn the bundled item, SKU3, into a single inventory item. 

 

Let's say that my current state is:

ItemCurrent InventoryPurchase PriceSale PriceProduct Type
SKU110$10$15Inventory Item
SKU215$20$30Inventory Item
SKU3  $45Bundle (SKU1+ SKU2)

 

My desire would be to keep the SKU3 number for the new Inventory item so that this is transparent to the customers.

 

  • Will there be any issues retiring the "Bundled SKU3" and creating an "Inventory SKU3" item? I'm assuming no since Bundled items are not "real".
  • How would I take care of the fact that SKU1 has 5 fewer units in stock than SKU2? Should I just purchase 5 more SKU1 before doing any consolidation or is there another way to handle it?
  • How would I transition the inventory for SKU1 and SKU2 the new "Inventory SKU3"? My initial thought is to:
    • Make the "Bundled SKU3" inactive
    • Buy 5 more SKU1
    • Create the "Inventory SKU3" with an initial inventory of 15 units
    • Make an inventory adjustment down to zero for SKU1 and SKU2
    • Make SKU1 and SKU2 inactive
    • Since all items are in the same COGS account, I do not think I would need to make a journal entry
  • Would it be better to sell all of the current inventory as we have been, then adopt the new system once that occurs?
  • I realize that there are probably multiple ways to do this, but I'm just looking for advice on how to approach it so I don't have an improper P&L.

 

Thanks!

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MichelleBh
Moderator
Moderator
‎March 19, 2021 01:28 PM

Other questions

I agree with your SKU's transition thoughts, @fergy.

 

I'm here to help you consolidate your inventory items in QuickBooks Online (QBO). Let me give you step-by-step instructions to accomplish this. 

 

First, to take care of your SKU1, you can either purchase it or adjusting the inventory. There will be no issue since a bundle is just like grouping the product and services. 

 

If you prefer in adjusting the quantity, you can follow the steps below. 

 

  1. Go to the Sales tab, then choose Product and Services.
  2. Locate SKU 1 and SKU, then click the Edit button one at a time. 
  3. Tap Quantity hyperlink, then Continue. 
  4. Modify the New Qty, then click Save and close. 
  5. Click the small drop-down arrow perpendicular to that item. 
  6. Select Make inactive and tap Yes. 

 

You may refer to these articles below for more details: 

 

 

Once done, the inactive Sku's will remove from your Bundle list. 

 

 

After that, please create the Inventory SKU3 with an initial inventory of 15 units. Then mark the Bundle SKU3 inactive. 

 

See the sample screenshots below for your guidance: 

 

inventory 1.PNG

 

To check all your inactive inventory, please click the funnel icon, then choose Inactive, and click Apply. 

 

 

Yes, you don't need to create a Journal entry since they use the same COGS account. 

 

For your last question about selling all of the current inventory, it will depend on you. You can also sell it so there'll be no issues when it comes to value and cost calculation. 

 

I've encouraged you to visit this article about handling your inventory accounts and report in QBO: 

 

 

Please let me know if you have further questions about your SKU's. I'm always here, ready to assist you. Take care always. 

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