How to enter inventory items in quickbooks desktop

In this tutorial we will see whether How to enter inventory items in quickbooks desktop

 

Well, when you install QuickBooks, the inventory tracking feature remains disabled which you need to enable first, to add and track your inventory items. So, to enable the inventory tracking feature, go to the “Edit” menu and select “Preferences” and then select “Items & Inventory” and under “Company Preferences” tab check this checkbox to activate the inventory tracking feature and at this point in time I am not going to make any other changes in the other default settings then click on “OK”. QuickBooks will let you know that it needs to close all the open windows to change this preference. So, go ahead and click on “OK”, It will close all the open windows to make changes and then just click on the home to bring your home page back and here you can see that we have some new features on the home page.

Instructional Tutorial:

Now, either click on the “List” menu and select “Item List” or you can click on this icon named “Items and Services” to add your inventory items. Both will take you to the same window and here you can see the services items we have added earlier and to add your tangible products inventory. Click on the “Item” dropdown and select “New”, here it has selected “Services” in the “Type” field by default, Just change it to “Inventory Part” and here we can fill the fields to add our inventory items.

Well, I am going to create “Main item” and “Sub-Items”. For the main item, we don’t need to fill all the fields but we sure need to map it with an income account. Well earlier, we added Services as an income account and create all the designs services under that account separately so that we can track whether what design is bringing us the most. Well we sure can track our tangible inventory products under sales account which is a broad category but we never know what future hold for us so to keep that perspective in mind, I am creating a new income account named “Furniture” and making it a sub-account of Sales account to track the sales that come under this line of products and instead of clicking on “OK” I am going click on “Next” because I want to create sub-items under this main-item

Well our main item has just been created and now we can create other items and can make them sub-items of this main item. Now, write the name of your item, and if the item name is not too long and complicated then just write the full name otherwise use abbreviation and check this checkbox to make it a sub-item of the main item. Well if your supplier has provided you with the product part number you can add that here as it makes it easier to reference the product.

And you can write some purchase and sales description which you surely can change while creating your purchase order and sales invoice. It is not necessary but if you want you sure can as its just for the purpose of prefilling the purchase order and sales invoices.

Like the description, you can add Purchase & Sales Prices too to prefill the purchase orders and sales invoices and of-course you can change them too while creating them and, by default, quickbooks assign Cost of Goods sold Account to all costs but you sure can create new ones and categorize your costs according to your needs and you can select a preferred vendor you buy this product from if you want.

And here is the income account we have created when we added our main item to categorize the income that comes under this line of product and, by default, quickbooks assign Inventory Asset to all the items. And we sure can create new ones to assign to items according to our needs.

And, you can create your Re-order & Maximum points so that you know whether what product needs to be purchased or not. Let’s for purpose of example I add 2 as Reorder point and 30 as the Maximum items of this product in the stocks.

Well, if you are bringing in some stock relevant to this product, write the quantity and the total value of the quantity here but at this point in time I am keeping these fields empty and “As of” is the most important field here because it will affect your reports and untimely your decisions, so do mention the right date you are bringing your stock into the business.

Well, I am not going to mention the Unit of Measures at this point in time as it will be discussed in future tutorials and now, check the information again to see if you need to make some changes and if not then click on “OK” and here you can see that our main item and subitem have been created along-with the info we provided. Lets I create another one.

Anyhow, this is how you can add your inventory items one by one.