How to track operating supplies inventory? I do not sell the product which I buy. They are used in providing the service.

Great to have you here in the Community forum, sabrimnm.

In QuickBooks Online (QBO), you have the option to track operating supplies as non-inventory or service items, as they are not part of your inventory tracking. Here's how you can do it:

1. Go to the Gear icon at the top and choose Products and services.
2. Click the New dropdown button and select Non-inventory or Service.
3. Enter a Name for the product or service and a SKU, if you track them.
4. From the Category ▼ dropdown, select the category that best describes your product or service.
5. Select the I sell this product/service to my customers checkbox. If you don't sell the item, you can leave it unchecked.
6. In the Description on sales forms field, enter a description. 
7. Enter an amount in the Sales price/rate field.
8. Select the account you want to use to track the sale from the Income account ▼ dropdown.
9. If you need to track sales tax, select the appropriate sales tax from the Tax ▼ dropdown.
10. Click Save and close.

For more comprehensive guidance on managing your inventory, take a look at this article: Set up and track your inventory in QuickBooks Online.

I also advise consulting with your accountant for expert advice on this matter. If you don't have one, you can use our Find an Accountant tool.

If you have any other questions about tracking inventory, feel free to ask in the comments. I'm always here to help. Have a great day, sabrimnm!

Thank you for the response. 

But if I use non inventory, then I will not have an inventory at the end of the month. I want to have an inventory for the operating supplies, and the amount used during the period should be charged to the P&L. 

Further, I have two locations. How can I keep track of the inventory location wise? I will have the same item in both locations, but different quantities. Is it possible to track inventory based on location?

Hi there, Sabrimnm. Let me provide some information on tracking operating supplies and inventory.

Since the ability to track operating supplies is unavailable and the option to tag it as a non-inventory item doesn't apply to your business, you can track it as an inventory item and then add it to a bundle along with the product as a workaround. I'll guide you on how you can do this.

First, create inventory items for your operational supplies and products. Then, follow these steps to create a bundle:

1. On the left navigation panel, hover on Sales,and then select Products & services.
2. Click New, and then Bundle.
3. Name the bundle.
4. Select the inventory items.
5. Hit Save and close.

This way, you can track the remaining quantities at the end of the month. However, for further options in tracking inventory, you can also browse available third-party applications that can help you with the task.

Furthermore, the option to track inventory based on location is also unavailable in QuickBooks Online. As a workaround, you can create two separate inventory items for your products. As mentioned, you may also look for a third-party app to help you track your inventory based on location.

Here's how to look for apps in QuickBooks Online:

1. On the left navigation panel, go to Apps.
2. Click Find apps.
3. Search for apps and add them to your company.

I'll also leave these resources for your guidance:

• Set up and use location tracking in QuickBooks Online
• Set up and track your inventory in QuickBooks Online

For future reference, here's a guide on using reports to obtain valuable info on what you buy and sell: Use reports to see your sales and inventory status in QuickBooks Online.

I know efficient tracking is vital for your business, and it's my goal to help you achieve that with QuickBooks Online. If you have any further questions about inventory tracking, please don't hesitate to reach out. I'm just a post away, Sabrimnm. Keep safe!