Superior University

QuickBooks Accounting

Superior University

Presentation on Inventory Management in QuickBooksPrepared by: Hammad Khalid

WHAT IS INVENTORY?

A. Inventory in QuickBooks consists of the items that you buy and

sell and that you want to track as “inventory” for accounting

purposes.

B. For accounting (and tax purposes), inventory reflects the items

that you have purchased but have not yet sold.

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WHAT IS INVENTORY?

C. For QB purposes, you buy inventory via Purchase Orders and

Vendor bills and you sell inventory via invoices or sales receipts.

D. You should not track inventory if you do not have time to

continually and properly track inventory when you receive it and

when you sell it.

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Getting started with inventory tracking

in

QuickBooks

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Default Setting for Inventory

Choose "Edit" from the menu on the home page (main menu).

Choose "Preferences" from the drop-down list that opens. Superior University

Default Setting for Inventory

Choose "Items and Inventory," which appears on the left side.Superior University

Default Setting for Inventory

Choose the tab titled, "Company Preferences.”

Check the option titled, "Inventory and purchase orders are active. “

Click on "OK" when finished Superior University

Adding Inventory Item

Choose "List" from the main menu at the top.

Select "Item List" that appears in the second menu.Superior University

Adding Inventory Item

Choose "Item," which appears at the bottom of the box.

Select "New" for any inventory record to be added.Superior University

Adding Inventory Item

Choose "Inventory Part" and Click on "OK" when finished.

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Adding Inventory Item

Same window can be accessed through “Vendors” menu then “Inventory Activities” and selecting “New Item”.

Enter in the information requested for that part and Click on "OK" when finished. Superior University

Viewing Inventory Item in Report

Choose “Reports" from the main menu at the top.

Select “Inventory" then appears second menu Click on “Inventory Stock Status by Item.Superior University

Viewing Inventory Item in Report

Item is Recorded Successfully See "Available” and “On Hand” item.

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Inventory Adjustment

Choose “Activities," which appears at the bottom of the box from ‘Item List’ menu.

Select “Adjust Quantity/Value On Hand" for inventory adjustment.Superior University

Inventory Adjustment

Same window can be accessed through “Vendors” menu then “Inventory Activities” and Select “Adjust Quantity/Value On Hand"

Choose “Adjustment Account" and enter “New Qty”. “Qty Difference "and “Value” Calculated automatically at last click on “Save & Close”.

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Inventory Adjustment Report

Item is Updated Successfully in Inventory See “On Hand” item.

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