QuickBooks Inventory Tracking – How to Set up and Track?

While buying and selling items, a large number of transactions can be taking place. Also, you are required to keep an eye on the stock available in the warehouse. In this situation, it is necessary to keep a record of the incoming and outgoing products/services. Hence, to make your work easier, QuickBooks inventory tracking is made. 

By making use of it in the software, you can easily maintain a proper record of the inventory that you have. This feature can not only track every item but also help you determine the time and date of its movement. Along with this, users can add items to their inventory or modify them as needed in QuickBooks. Furthermore, in case you do not want to use the inventory tracking in QuickBooks, you can disable it or delete all of the items that are present in this feature.

Methods to Set Up QuickBooks Inventory Tracking

The software QuickBooks and inventory tracking feature can together be advantageous when you set them up properly. The setup can be processed in the QuickBooks Desktop program with the assistance of the Edit button. Alternatively, those operating on the QuickBooks Online software can initiate the inventory tracking setup via the Account and Settings option.

Method 1: Through Edit Tab in QuickBooks Desktop

It is important to set up the inventory tracking accurately before beginning to use it. To be familiar with the process of how to set up inventory in QuickBooks Desktop, a user should learn the use of the Edit tab. It will take you to the preferences of the software. From here, it is simpler to manage the setup of this feature.

• Launch “QuickBooks Desktop”.
• Then from the main menu of the program, press “Edit”.
• The “Preferences” button has to be clicked here.
• In this step, hit the “Items & Inventory” option.
• Move to the “Company Preferences” section.
• Next, you need to tick the checkbox beside “Inventory and Purchase Orders are Active”.
• Press “Ok” now.
• When a message stating “QuickBooks Must Close All its Open Windows to Change this Preference” comes up on the window, hit “Ok”.
• Come to the main window of QuickBooks and opt for “Items & Services”.
• Now, from the “Item List” section, choose the “Item” option for setting up QuickBooks inventory tracking.
• Click on “New” in this step.
• From the pull-down list of “Type”, the “Inventory Part” button has to be picked.
• Then you will have to enter proper information in the following fields:
  • “Item Name/Number”
  • “Purchase Information” 
  • “Sales Information”
  • “Income Account”

Note: Make sure that you do not enter any details in the field of “Unit of Measure”. However, users running “QuickBooks Premier”/some other higher version of the software can fill it.

• The field named “Cost of Goods Sold” will be automatically filled in by the software.
• Select the “Ok” tab once all the details have been appropriately entered.

With this, the inventory will get set up. You can begin with its use afterward.

Method 2: Using Account and Settings in QuickBooks Online

Users looking forward to setting up their QuickBooks Online inventory tracking with the help of the Account and Settings option. This tab keeps track of all the accounts. Hence, you need to move via it to successfully set up the feature. You need to tap on it through the Gear button. Once you do so, the Sales and the Edit button have to be pressed simultaneously to start the setup.

• Go to the “QuickBooks Online” program.
• Hit the “Gear” tab.
• Next, you will have to press the “Account and Settings” button.
• Click on “Sales” followed by the “Edit” feature.
• Then visit the “Show Product/Service Column on Sales Form” section to switch it on.
• The following options have to be turned on as well:
  • “Track Quantity and Price/Rate”
  • “Track Inventory Quantity on Hand”
• The “Save” tab has to be selected here.
• Opt for “Done” now.

3: Keep track of what sells

You can track the sales of your inventory product once you have set it up. There are two ways to do this:

• Create an invoice
• Add a sales receipt

4: Restock your inventory

QuickBooks can help you manage your inventory by tracking your stock levels and It will notify you when it is time to restock. You can also use QuickBooks to order inventory directly from vendors and track your shipments. When you receive inventory from a vendor, QuickBooks will automatically update your stock levels to reflect the number of items you received.

5: Use reports to check the status of your inventory

You can view to get real-time insights into your top-performing products, inventory levels, and cost of goods sold.

How to Add Inventory in QuickBooks?

QuickBooks users can comfortably add a new inventory to the accounting program through the use of the Sales button. This tab allows them to have a complete view of the sales transactions as well as the invoices that are open and paid. Thus, through this, you can know how many products/services have been sold and what is left. To reach this tab, you need to press the Gear sign first.

The following steps will guide you on how to add inventory part in QuickBooks:

• You need to look for the Gear icon in QuickBooks.
• After clicking on this icon, choose the “Sales” option.
• Head to the “Purchase and Services” section.
• You are required to select either the “New” or “Add a Product or Service” button.
• Hit the “Inventory” tab.
• The following information has to be added for the items that are to be tracked:
  • “Name”
  • “HSN Code”
  • “SKU”
• Move to the “Unit” pull-down list. Here, mention the unit. 
• To learn further how to add inventory in QuickBooks, navigate to the drop-down of “Category”. Once you set it, the products/services can then be grouped for making your search easier.
• In the “As of Date” field, type the product’s quantity.
• An alert can also be set for reordering in the “Low Stock Alert” section.
• The “Inventory Asset Account” drop-down has to be clicked next, followed by selecting the “Inventory Asset” option.
• Save the details and this inventory part will get added to your QuickBooks program.

How to use Quickbooks to Track Inventory?

Once you set up the inventory feature, you should have knowledge about how to use QuickBooks to track inventory. While the Edit option lets you set up this feature, it also assists in functioning the inventory. You can use this option to define your preferences. Then you can save the information and proceed with the inventory’s usage.

• Head to the “Edit” button in the accounting program.
• Then choose the “Preferences” option.
• Locate the “Items and Inventory” section from the panel on the left.
• Click on “Company Preferences”.
• You will have to check-mark the option of “Inventory and Purchase Orders are Active”.
• The “Ok” button has to be chosen then.
• Now, from the “QuickBooks” menu, opt for “Lists”.
• Once the drop-down appears, choose the “Item List” button.
• Scroll to the bottom of the page by tapping on the “Item” tab.
• Then press “New”.
• From the drop-down named “Type”, click on “Inventory Part”.
• Mention each of the required details.
• Choose “Ok” now.
• Go back to the home window and look for the “Vendor Center” option via the “Vendors” tab.
• After this, tap on the arrow beside “New Transactions”.
• The “Receive Items and Enter Bills” option has to be clicked when the items on the inventory list have been paid already.
• If you have not paid the same, then hit “Receive Items”.
• Now, go through the fields that are to be filled in and mention the appropriate information.
• Once everything is accurately typed, press the “Save & Close” tab. You can now use your QuickBooks inventory tracking feature.
• In case you want to add a new inventory, select “Save & New”. After you set up the preferences for this, you can start using it.

How to Adjust Inventory in QuickBooks?

At times, due to certain situations, you may find a need to modify the items present in the inventory. This can particularly happen when new products/services are bought. Executing this process can only be successful when you have opted for the Vendors tab. It permits the users to make changes or adjustments to the records of the transactions of the sellers. 

To comprehend further what inventory method does QuickBooks use for adjustments, you need to go through the following:

• Visit the “QuickBooks” program and choose the “Vendors” button.
• Then opt for the “Inventory Activities” tab.
• Next, pick the “Adjust Quantity/Value on Hand” and the “Inventory” options one by one.
• From the pull-down menu named “Adjustment Type”, you will have to choose the type you require among the given options:
  • “Total Value”
  • “Quantity”
  • “Quantity or Total Value”
• The field “Adjustment Date” has to be typed then.
• After this, move to the drop-down menu named “Adjust Account”.
• In the field provided for “Reference No.”, you can even mention the customer, class, or job.
• To proceed further and adjust QuickBooks inventory tracking, go to “Find & Select Items”. Then you will be able to choose the items that are to be adjusted.
• In case many products have been added to the inventory, you can select the items via the “Find” button.
• Hit the “Add Selected Items” button.
• Further, fresh quality, as well as a fresh value, is required to be added for each of the items.

In this step, pick the “Save and Close” feature. How do you enter inventory into QuickBooks will now be clear. Keep in mind that every time you enter or add it, correct values are included.

How to Zero out All Inventory in QuickBooks?

When you do not find any use for the old inventory recorded in the accounting program, you should clear it out. You will zero out the information stored via this feature. Since this procedure can delete the products and their quantities added to the inventory, you must carefully consider this decision. Afterward, moving through the Product and Services option is suggested to give rise to this method. 

How to zero out all inventory in QuickBooks can be understood through these steps:

• Press “Gear” after opening the software.
• Once you get it, tap on it, and move to the “Product and Services” button.
• Look for the product whose quantity has to be modified.
• Then head to the column of “Quantity on Hand”.
• Here, opt for the link named “Quantity”.
• You need to visit the column named “New QTY”.
• In the field provided, type “0”
• Now, click on the “Save and Close” option.

How to Import Inventory into QuickBooks?

This accounting software allows its users to import an inventory file into QuickBooks. In case you do not want to manually make an entry, moving information in this way can reduce your effort. How to import inventory into QuickBooks can be found out by locating Tools. It has a Direct Import option that will move your files into this software.

• Open “QuickBooks” and look for the “Settings” button.
• Go to the “Tools” section.
• Then opt for the “Import Data” button.
• Among the other options provided in the list, hit the “Product and Services” tab.
• Next, from the page “Import Products and Services”, click on “Browser”.
• Look for the “Excel” (.xls) file here.
• Following this step, choose the “Open” feature.
• Select “Next” and begin mapping your data.
• Choose “Next” then.
• Put a tick mark on the box for “Overwrite All Values for Each Product or Service that You Import with the Identical Name”.
• Lastly, the “Import” tab has to be pressed. You need to provide a few minutes until the selected inventory file gets imported. 

With this final step, you will finish learning how to manage inventory with QuickBooks for imports. In the same way, you can move several files to the software for the management of this feature.

How to Turn off Inventory Tracking in QuickBooks Desktop?

This inventory tracking feature can be turned off in case you do not feel the requirement of using it. As the Account and Settings tab stores the record of each of the accounts listed in the program, the inventory tracking account will be present here too. Thus, click on the icon of Gear to get here. You then need to visit the Sales button which will take you ahead in disabling the tracking feature.

To gain proper knowledge about how to turn off inventory tracking in QuickBooks Desktop, scroll the steps given below:

• The “Gear” tab has to be located on the “QuickBooks Desktop” window.
• Using this, you need to head to the “Account and Settings” section.
• Afterward, press “Sales”.
• Next, you will have to navigate to “Purchase and Services”.
• Look for the “Track Inventory Quantity on Hand” checkbox.
• Once you find it, remove the tick placed for it.
• Finally, choose the “Save” and “Done” buttons, respectively.

Users can witness multiple benefits provided by QuickBooks inventory tracking. Each of the data related to the product movement can be examined through this. After going through the post accurately, you would have learned the different methods of adding, adjusting, and using the inventory in QuickBooks. Once you commence utilizing this feature, keeping a track of the items in the warehouse should never be a problem.

Frequently Asked Questions