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thewiz62
July 14, 2024
Question

Inventory management

  • July 14, 2024
  • 1 reply
  • 0 views

I have a shop where I sell antique clocks. I have many clocks that I previously acquired, some many years ago. How can I enter these in my inventory when I have no purchase records for them, and show that they had some cost initially so the sale isn't considered to be all profit?

1 reply

S
SheandL
July 15, 2024

Hi there, @thewiz62. I'm here to walk you through the steps in managing your inventory items in QuickBooks Online (QBO).

 

You can turn on the Inventory tracking feature to properly account for your antique clocks inside QBO. This way, you can seamlessly handle what you buy and sell. To set up this, here's how:

 

  1. Go to the Gear icon and Account and Settings.
  2. Under the Sales tab, head to the Products and services.
  3. Turn on both Track quantity and price/rate and Track inventory quantity on hand.
  4. Click Save, then  Done.

 

Once done, add the clocks as an inventory item in QBO. I'll walk you through on how to accomplish this.

 

  1. Head to the Sales menu at the left navigation panel.
  2. Select Products and Services.
  3. Click the New button, then select Inventory.
  4. Please ensure that you enter all the required details accurately. Also, estimate the cost of each item correctly, as the information entered will be used to calculate your Cost of Goods Sold (COGS) when you sell the items.
  5. Click Save and close.

 

Please read this article for reference: Set up and track your inventory in QuickBooks Online.

 

Afterward, since you don't have purchase records of these items, you can adjust the inventory value using a journal entry to reflect these clocks on your books accurately.  To create one, here's how:

 

  1. Go to the + New button.
  2. Select Journal entry.
  3. Add the necessary information and ensure that the information is right.
  4. Click Save and close.

 

For reference, read this article: Create journal entries in QuickBooks Online.

 

Additionally, you can read this helpful article to help you pull up reports regarding your products and services in QBO: Run reports in QuickBooks Online.

 

Be sure to reply in the comments if you need help in managing your inventory items in QBO. I'm one comment away.

T
thewiz62Author
July 15, 2024

Thank you very much for your reply. I believe I understand your procedures. If I understand correctly, the purpose of the journal entry is to account for the difference between what the stated cost of the inventory item was as entered, and what the item sells for...is this correct? Can you provide any details about what accounts to use when making the journal entry? Thank you again for your time and help. 

E
ErwinQ
July 15, 2024

Thank you for getting back to the thread, @thewiz62. Allow me to provide more information about your concern.

 

Yes, you got it right. With regard to what accounts to use,  I encourage collaborating with your accountant for detailed guidance in selecting the accounts as they know which accounts will impact your books.

 

I'm adding these resources to personalize and save their current customization:

 

 

If you have more questions about managing your inventory in QBO, please don't hesitate to reach out. I'm always here to help.

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