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mapmiester
January 8, 2024
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Historical Inventory

  • January 8, 2024
  • 1 reply
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I’m just starting my books this year. I have some inventory I purchased last year that I will sell this year. How do I handle this in QB?

Best answer by Rubielyn_J

Welcome to the Community forum, @mapmiester.

 

It's great that you're getting a head start on your books for this year. Managing inventory can be a crucial aspect of your business, and I'm here to guide you through the process.

 

We can enter the purchase in the inventory as an expense, and check our bill. Once the transaction appears in your bank, as it corresponds to the specific date of the entry in QuickBooks. If it's a cash transaction, we can easily set up a cash-on-hand account for you to use when paying the expense.

 

Additionally, make sure to turn on the inventory feature in your QBO account. For detailed steps, please utilize this link: Set up and track your inventory in QuickBooks Online.

 

You can also use reports to get helpful insights on the things you buy and sell, and the status of your inventory. It will show you which reports to run depending on what kind of info you want to see.

 

If you have any further questions, please don't hesitate to reach out. I'm here to support you every step of the way. Wishing you success as you manage your inventory and start your books for the new year.

1 reply

Rubielyn_J
Rubielyn_JAnswer
January 8, 2024

Welcome to the Community forum, @mapmiester.

 

It's great that you're getting a head start on your books for this year. Managing inventory can be a crucial aspect of your business, and I'm here to guide you through the process.

 

We can enter the purchase in the inventory as an expense, and check our bill. Once the transaction appears in your bank, as it corresponds to the specific date of the entry in QuickBooks. If it's a cash transaction, we can easily set up a cash-on-hand account for you to use when paying the expense.

 

Additionally, make sure to turn on the inventory feature in your QBO account. For detailed steps, please utilize this link: Set up and track your inventory in QuickBooks Online.

 

You can also use reports to get helpful insights on the things you buy and sell, and the status of your inventory. It will show you which reports to run depending on what kind of info you want to see.

 

If you have any further questions, please don't hesitate to reach out. I'm here to support you every step of the way. Wishing you success as you manage your inventory and start your books for the new year.

M
mapmiesterAuthor
January 8, 2024

Thank you! Since my inventory was purchased last year, the expense transaction has already occurred outside my bookkeekping. Is the credit account Inventorn On Hand?

M
Mark_AG
January 8, 2024

Hi there, @mapmiester.

 

I'd gladly assist you with your query for today. If you purchased your inventory last year, you can record it using simple transactions such as creating a Bill with the specific date you purchased and marking it as paid on the same date. This will automatically add quantities to your inventory and to your expense account.

 

Ensure you create the product/service item with a suitable income and expense account. By default, the income account is Sales, while the expense account is the Cost of Goods Sold.

 

Suppose you're referring to a Journal Entry. In that case, whether the Inventory on Hand is on a credit or debit account, I recommend consulting your accountant to ensure you're crediting the correct account.

 

Furthermore, you can also learn how to adjust your inventory quantity in QuickBooks Online to manually adjust an item's quantity without recording a purchase or sale to match what you have in stock. 

 

Let me know if you have further questions about inventory tracking in QuickBooks Online. I'm always here to assist you. Have a great day!

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