In this article you will learn about how you can track inventory stored at different locations by turning on Advanced Inventory.
Please note: It is important to turn on Advanced Inventory before proceeding. Follow the steps given below to turn on Advanced Inventory
Step 1: Setting up inventory sites
Firstly, you need to tell QuickBooks desktop where you track inventory. The locations are known as sites. Sites are actual warehouses with different trucks, piles, addresses, staging areas or other locations where you wish to track inventory.
In order to this task follow these steps:
- Choose Inventory Site List from the lists menu.
- Click on the Site button and then select New.
- Enter information.
Now, please repeat Steps 1 to 3 until the sites are setup.
You can proceed to Step 2 if you have completed this step. In case you are switching from another method of tracking inventory sites or in the step 3 you will have to set reorder points for every site or proceed to the next step.
Step 2: Convert to previous method of tracking inventory sites
Currently, you may use different method for tracking multiple inventory sites. You need to make sure that the inventory numbers are correct so that you can easily change using Advanced Inventory before using multiple inventory sites.
You will have to take additional steps to switch to Advanced Inventory depending on the current method you are using. Find your current method from the list for detailed instructions. Look at the option if not listed.
- Inventory tracking outside QuickBooks
- You use different software in this method in order to track how much inventory for each site.
- In case you want to switch to the Advanced Inventory method:
Run a report using your other software for identifying the quantity on hand at all the sites.
- You need to set them up if you don’t have your inventory in QuickBooks.
- For each site, you’ll have to create separate items.
You can use a naming method using this method or structure to differentiate between items at different inventory sites.
Follow the steps given below to switch to the Advanced Inventory method if you use this method:
Reminder: The steps involved are complicated and need a good knowledge about QuickBooks. You can get help for the same at QuickBooks Helpline Number.
For each item, you need to calculate the quantity on hand at each site. You should also be aware of QOH. You need to write numbers down; you can also print a report from QuickBooks.
Firstly, clean your item list. For each item you sell you’ll have to have only one item.
Now you need to make a list of items that you need to use in future.
Decide which items to use in the future. You only need one item in QuickBooks Desktop. For example , choose WH 1 Widget 1
For the items that you don’t use, adjust the quantities to zero.
Adjust the quantities to zero for the redundant items you won’t use and then make a corresponding increase for the item that is to be used.
In case of small value differences:
- Adjusting the quantity of Items that you are keeping will help and then increase the value of adjustment.
- Select Adjust Quantity/Value On Hand from the inventory menu.
- Choose Quantity and Total Value from the Adjustment type drop-down.
- Click on the account that you would normally use from the Adjustment Account drop-down.
- Select the inventory site from the Inventory Site drop-down that you had set as your default at the time of turning on Advanced Inventory.
- Select the items which represent the same item across sites by clicking on Add Multiple Items.
- In the rows that contain the redundant items, enter 0 in the New Quantity column.
Now calculate the sum of quantity differences for all these redundant items.
Add the quantity from step 7 in the row which contains the items that you will keep in the Qty Difference column (as a positive number).
- In the New Value column, Set all values to 0 in the New Value column.
- In the bottom right of the window, note the total Value of Adjustment amount.
- Enter the amount which you noted in the 10th step in the new column, in a row which contains the item you are keeping. The total adjustment amount will be zero now.
- Click on Save and New and then repeat the steps for the next set.
- Now, make inactive the redundant items which will not be used. You can merge them also. But if you merge them you will lose information about locations.
- Now you need to rename the remaining items or you can also remove any reference to the site
- You can make use of class tracking in order to track inventory location.
You use classes to represent each site or location in this method. After which you can classify inventory purchase and sales transactions.
In case you want to switch from this method, simply stop using the method
- Calculate the QOH at every site
- Clean your list Item
- To match each inventory part you buy or sell you need to have one inventory part or assembly part item in QuickBooks.
This part will reflect the total QOH for all the items.
Reminder: Advanced Inventory does not segregate the incomes and expenses. It only helped in tracking the inventory. You should try using class tracking for segregating expenses and incomes at locations.
You can also use another method
Make sure you figure out the QOH at sites in case you are using other inventory tracking methods.
Also make sure to track multiple inventory sites if you are using a different method to track multiple inventory sites.
Get an Idea of Quantity in hand at all the locations.
You should clean your item lists if your method uses Item lists. (this is optional)
To know more on how to set up advanced inventory contact QuickBooks Help. You can write to us at support@quickbooksupport.net . For further information visit, www.quickbooksupport.net.
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