Inventory adjustments when accepting Purchase Orders from customers

Welcome back to the Community, sciencetothemax. I will be happy to help! If you have QuickBooks Online Plus or Advanced, you can use the inventory feature to automatically track and manage the quantity on hand and purchase orders. Here's how to start that:

1.  Go to Settings, then choose Account & Settings, and select the Sales tab.
2. Choose Edit in the Products and Services section.
3. From the  Show Product/Service column on sales forms, turn on Track Quantity and price/rate, and Track inventory quantity on hand, as seen in the example below.
4. Click on Save and then Done.

From there, you would need to create the product or service item and add them to your inventory to start tracking, which is linked here. A remarkable feature they have added is when you hover over the quantity area, you can see quantity on hand, reorder points, and quantity on purchase orders, as seen in the example below. Regarding purchase orders, the same link also includes how to record and track purchase orders. 

As far as choosing the account is concerned, you would have to speak to your accountant about the best course of action. If you don't have one, feel free to use our ProAdvisor service, where you can connect with experts within your area!

If you have any other questions, reply below, and we will do our best to provide a solution. Bye for now.