The inventory feature of QuickBooks Online Plus lets you track sales revenue, quantity, and cost of goods sold. This article will explain you what Inventory tracking is all about and what items can be tracked with it. To find out how you can enable inventory tracking, add inventory and edit your product and services by batch call on QuickBooks help number.
Some points to remember:
• The amount paid for your inventory item is the value of the inventory item amount in your books.
• Recording the purchase of an inventory item increases the value of Inventory Asset account on your Balance Sheet report by the cost of the item and increases the Quantity on Hand units for that item.
• As soon as you Record a sale of an inventory item there is a decrease in the value of Inventory Asset account. The inventory asset account decreases by the original cost of the item and decreases the Quantity on Hand units for that item.
• When you record a sale the Cost of Goods Sold account (COGS) increases by the original cost of the item. It also increases the Sales of Product Income account by the amount paid by your customer for the item. Your gross profit on that item is the difference between the income amount and the COGS amount.
• QuickBooks Online uses a method called First in First out (FIFO), when you pay more for some units of a given product than for other units because of a fluctuation in price to manage cost accounting as you sell units of that product.
Items Allowed for Inventory Tracking
You can track 4 types of items in QuickBooks Online:
Inventory items: You need to track quantities of these types of items. You are required to select Tracking Quantity on Hand for Inventory items.
Non-inventory items: You do not need track quantities of Non-inventory Item. Examples are nuts and bolts used in an installation.
Services: These are services you provide to customers. For example, landscaping or tax preparation services.
Bundle: A bundle is a collection of products and/or services that you sell together. For Example -a gift basket of fruit, cheese, and wine.
Default items which are pre- created by QuickBooks (Hours or Services) cannot be changed to an Inventory Item type.
Items that have been classified as Inventory cannot be changed, where as items classified as non-inventory or services can be classified again by editing the product or service. Steps to edit a product or service:
1. Click on the Gear icon present at the top and then choose Products and Services.
2. Click on the Edit next to the item that needs to be changed, listed on the products and services list.
3. Select Change type and choose the appropriate selection present in the Edit Screen.
To know how to set Inventory tracking in QuickBooks call at QuickBooks phone number 1-877-227-2303.