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.<\/p>\n
Some points to remember:<\/strong><\/p>\n \u2022 The amount paid for your inventory item is the value of the inventory item amount in your books.<\/p>\n \u2022 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.<\/p>\n \u2022 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.<\/p>\n \u2022 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.<\/p>\n \u2022 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.<\/p>\n Items Allowed for Inventory Tracking<\/strong><\/p>\n You can track 4 types of items in QuickBooks Online:<\/strong><\/p>\n Inventory items:<\/strong> You need to track quantities of these types of items. You are required to select Tracking Quantity on Hand for Inventory items.<\/p>\n Non-inventory items:<\/strong> You do not need track quantities of Non-inventory Item. Examples are nuts and bolts used in an installation.<\/p>\n