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billhdz
January 11, 2024
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Can non-inventory items be used to buy and sell products without using the QB inventory feature?

  • January 11, 2024
  • 2 replies
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Hello,

Can non-inventory items be used to buy and sell products without using the QB inventory feature?

 

I am an artist that sells art prints wholesale and retail.  For the most part, I produce most of the prints in-house, so I don't have the need to track inventory in 95% of the cases.  If I have to track inventory, I would use a spreadsheet.

 

I am thinking that the way to do this is by setting up my products as non-inventory items.  Is this the correct approach? 

 

I am asking, because everything I read about non-nventory items has to do with nuts and bolts, and minor things lke that. 

 

The only two option I see to use in QB with what I am trying to set up is "other charge" and "non-inventory items"

 

Thank you in advance for your help! 🙂

p.s. "I am using Quickbooks Desktop 2021, but I am thinking this can apply to all versions of Quickbooks."

 

Best answer by MirriamM

Hello there, billhdz.

 

I'm here to assist you with your inventory query. 

 

Yes, you can use non-inventory items in QuickBooks Desktop (QBDT) to buy and sell products without using the inventory feature.

 

Setting up your products as non-inventory items is indeed the correct approach for your situation. Non-inventory items in QBDT can be used to track sales and purchases without affecting the quantity on hand. This is ideal for businesses that don't need detailed inventory tracking for their products.

 

Additionally, when you create a non-inventory item, you can specify the sales price, purchase cost, income account, and expense account associated with that item. Doing so will allow you to track the sales and purchases of your art prints without the need for detailed inventory management.

 

Lastly, this approach is applicable to QuickBooks Desktop 2021 and other versions of QuickBooks as well. 

 

For more tips while working with your inventories, you can browse a topic from this page: Running your business / Inventory.

 

If you have any questions about inventory in QuickBooks Desktop 2021, feel free to ask for further assistance. I'm here to help.

2 replies

M
MirriamMAnswer
January 11, 2024

Hello there, billhdz.

 

I'm here to assist you with your inventory query. 

 

Yes, you can use non-inventory items in QuickBooks Desktop (QBDT) to buy and sell products without using the inventory feature.

 

Setting up your products as non-inventory items is indeed the correct approach for your situation. Non-inventory items in QBDT can be used to track sales and purchases without affecting the quantity on hand. This is ideal for businesses that don't need detailed inventory tracking for their products.

 

Additionally, when you create a non-inventory item, you can specify the sales price, purchase cost, income account, and expense account associated with that item. Doing so will allow you to track the sales and purchases of your art prints without the need for detailed inventory management.

 

Lastly, this approach is applicable to QuickBooks Desktop 2021 and other versions of QuickBooks as well. 

 

For more tips while working with your inventories, you can browse a topic from this page: Running your business / Inventory.

 

If you have any questions about inventory in QuickBooks Desktop 2021, feel free to ask for further assistance. I'm here to help.

    Rainflurry
    Rainflurry
    January 11, 2024

    @billhdz 

     

    "Can non-inventory items be used to buy and sell products without using the QB inventory feature?"

     

    Yes, certainly.  That is the purpose of the non-inventory product.  It's for products that you buy/sell that you don't need to track as inventory.  The question is not can you use inventory or non-inventory products for your art, but should you ?  Technically, if inventory is an income-producing factor in your business then you should be tracking (capitalizing) the value of inventory that you have in-house or on consignment.  And, you then also should be on accrual basis accounting.  Are you on cash or accrual basis?  Are you a sole proprietor or an S-Corp or ???  If you're on cash basis then you do not track inventory.  If you're on accrual basis then, yes, you should be tracking inventory.  Forgive me if you're aware of all this - it's not always clear the level of tax/accounting experience of users on this forum.   

      B
      billhdzAuthor
      January 11, 2024

      @Rainflurry 

      Thanks for the reply.  I am a single member LLC.  Cash Basis.

       

      I basically use Quickbooks to keep track of all my sales, invoices, credit card payment info, and check.  Then I print a Profit & Loss and Balance Sheet, and I give this to my accountant to do my taxes.

       

      Some things I charge for are services and some are wholesale and retail.

       

       

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