QuickBooks Pro Online Beginner (2023): Adding Inventory

Name: QuickBooks Pro Online Beginner (2023): Adding Inventory
Author: Takeisha Strong

Learn how to add inventory to a company’s QuickBooks file

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Course: On-Demand

Hello, my name is Tequisha Strong. In these lessons, you will learn how items are defined in QBO, how to set up and add inventory items, how workflows are affected by inventory, and the reports associated with inventory transactions. We'll be using our sample company, Craig's Design and Landscaping Services for the lessons. Let's get started. Using the gear icon menu at the top right hand of your screen, let's select all lists. The Products and Services and Product Categories lists are those that are affected by inventory. Let's select Products and Services. On this screen, you'll see the main dashboard tracks low stock and out-of-stock inventory items. At the top right, you can manage categories or run an inventory report, or you can add new inventory items. Inventory items have four distinct definitions within QBO. You have inventory items, which are products the company may buy and or sell that it must keep track of the quantities. You have non-inventory items, which are products the company may buy and or sell, but it either does not need to or cannot physically track the quantities, for example, nuts, bolts, and screws. Service items, which is exactly that, services that a company may provide to its customers for a fee. And then you have a bundle, which is a collection of any of the above. Now let's take a look at the Product Categories. The Categories List allows you to group similar inventory items to better manage your inventory or to keep a more cohesive list. For example, we have a design category with a subset of fountains related to the design, landscaping with a subset of sprinklers, and then all of the pest control services would be grouped into one product category. For this lesson, let's create a new category under landscaping services for privacy fences, and we'll also create a new service related to the privacy fence installation. Let's select new category. We'll call the new category privacy fence. We'll make this a subcategory of our landscaping services. Let's press Save. And now you'll see that we have privacy fence as a new category. Let's use the gear icon at the top right of the screen, or you can use the arrow back to head back to your products and services. Under landscaping, you won't see the product category because there have been no inventory, non-inventory service, or bundle items assigned to the privacy fence category. Let's do so now. Let's select a new service. We'll name this service privacy fence installation. If you make a mistake in selecting the type of inventory item, you can change the type here. If this were a product and you needed to note the skew, you could add it here. You could add a picture of the product or service. Select a category, which will assign this to privacy fence. If you'd like to add a description, you can do so here. You'll want to let QBO know that this service is something that you provide to your customers. Based on that, you can set a standard price or rate for the service. And you'll also need to select the income account so that all transactions related to the privacy fence installation can be recorded properly. Lastly, if your area collects sales tax on services, you can edit those variables here. Since we are providing the services within the company, you don't need to select this box. However, if the services were being provided by a subcontractor, you still could select the box even though this is a service and not a product. In those situations, if you are purchasing the privacy fence installation service from a subcontractor that the company pays, you will select the box. If you pay your subcontractors a standard fee, you could list that in the cost. Note which expense account, the cost, or the subcontractors fee should post to. And if you have a preferred vendor or contractor to provide that service, you can select them here. Let's uncheck the box and select Save and Close. Now, if we scroll down, you'll see that we can see our new category, privacy fence, as a subcategory of landscaping. And we also have our new service, privacy fence installation. In this case, we have that service is taxable. If we provided a description, it would be listed along with a standard sales price and cost if we were providing this through a subcontractor. In the next lesson, we will learn how to set up and add inventory parts to the QBO file. Thanks for watching.

Beginner Provider : Takeisha Strong 4 Lessons · 30m in English

Course Description

Some companies purchase products wholesale to sell, or they may bundle goods to their customer base at a retail rate. Other companies may use several raw materials to build a new product for their customer base. In each of these instances, the ability to track the products during each step of a transaction is critical. QuickBooks Online (QBO) can provide information about what items need to be ordered, as well as when and how much of an item should be held in storage. Developing the proper inventory reports also equips management to assess the profit margins based on inventory costs versus the finished item sold.

All inventory is categorized within QBO’s products and services list. QBO allows users to add, track, and adjust the quantity of inventory on hand in a company’s file. In this module, you will be able to define the different types of products and services in QBO, learn how to add them to the company’s file, understand the inventory workflow and how transactions affect inventory, and what reports are available to assist with all of the above.

What You'll Learn

Identify the different types of products and services in QuickBooks Online (QBO)
Add and set up inventory items in the company's file
Understand the accounting workflow for inventory transactions and how transactions affect inventory
Explain basic inventory terminology
Generate and use inventory reports available in QBO

Key Takeaways

All inventory in QBO is categorized within the products and services list.
QBO allows users to add, track, and adjust the quantity of inventory on hand in a company's file.
QBO can indicate what items need to be ordered and when and how much of an item should be held in storage.
Inventory reports help management assess profit margins based on inventory costs versus the finished item sold.

Frequently Asked Questions

What does this course cover?

It covers defining the different types of products and services in QBO, adding them to the company's file, understanding the inventory workflow and how transactions affect inventory, and the reports available to assist with these tasks.

What topics are included in the lessons?

The lessons cover setting up inventory in QBO, adding new inventory items, the inventory workflow, and inventory reports.

What skills will I gain from this course?

The course builds skills in inventory accounting, inventory management, inventory management systems, and QuickBooks accounting software.

Who is this course suited for?

It is a beginner-level QuickBooks Pro Online (2023) module for those learning to add, track, and adjust inventory in QBO, including companies that purchase products wholesale to sell, bundle goods, or use raw materials to build new products.