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dal1cas2
Dec 6, 2018 6:13 PM UTC
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Inventory Tracking without cost or sales

Is there a way to track inventory without having it affect the accounting side of things? I just want to keep track of my on-hand inventory but not have it go through payables/receivables

 

Charies_MAnswer
Dec 6, 2018 8:16 PM UTC

Welcome to the Intuit Community, dal1cas2.

 

At the moment, there isn't a way we can track inventory without affecting cost and sales. Inventory tracking is designed to track quantity, sales revenue, and cost of goods sold. 

 

If you wish to have this feature included in the next update, I encourage you sending this great suggestion to our product developers the the feedback feature in QBO. I'll do the same thing on my end.

Here's how:

  1. Click on the Gear icon.
  2. Click Feedback.
  3. Type in your feedback or feature request.
  4. Click Send Message.

We're always working on providing our customer the best product and service they deserve. We'll keep your suggestion in mind for future development plans.

 

If there's anything else I can do for you, or questions about inventory tracking in QBO, feel free to let me know. I'd be glad to help.

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11 replies

Regina_Lend_A_Hand_Accounting
Regina_Lend_A_Hand_Accounting
Dec 6, 2018 8:14 PM UTC

When you purchase inventory it becomes an Asset of the business. When you make a sale from your purchased inventory it becomes a cost of goods sold expense for your business. Your inventory is tracked with "accounting", thus your inventory needs to be part of your accounting.

Charies_MAnswer
Dec 6, 2018 8:16 PM UTC

Welcome to the Intuit Community, dal1cas2.

 

At the moment, there isn't a way we can track inventory without affecting cost and sales. Inventory tracking is designed to track quantity, sales revenue, and cost of goods sold. 

 

If you wish to have this feature included in the next update, I encourage you sending this great suggestion to our product developers the the feedback feature in QBO. I'll do the same thing on my end.

Here's how:

  1. Click on the Gear icon.
  2. Click Feedback.
  3. Type in your feedback or feature request.
  4. Click Send Message.

We're always working on providing our customer the best product and service they deserve. We'll keep your suggestion in mind for future development plans.

 

If there's anything else I can do for you, or questions about inventory tracking in QBO, feel free to let me know. I'd be glad to help.

    qbteachmt
    qbteachmt
    Dec 6, 2018 8:28 PM UTC

    Of course you can track inventory without running it through AP or AR, and it doesn't have to affect costs or sales.

     

    Let's take these separately: AP is only Enter Bill for something I did not yet pay for. You can list Inventory on the purchase as Check Expense or Credit Card Charge. This is how you show you bought something, with Quantity and Cost.

     

    AR is part of Unpaid Sales. Inventory is not by definition Sales; it is by definition Stuff on hand. So, for instance, a machine shop or fabrication shop might need to track tool bits, saw blades and materials as Inventory for inhouse management, which is never what is sold. Perhaps you sell Trailers, and build them Custom.

     

    So, you list Bar stock, square tubing, cut off blades, etc as inventory on Purchases. When you then Build that trailer to sell, you "Adjust inventory" to remove the Tubing and Bar Stock from on hand. You also Adjust inventory for removing new saw blades as they get placed in the machines.

     

    And you would sell that trailer, as your revenue item. You would never sell inventory, in this type of operation.

     

    I have a client that builds and tests rocket engines. They manage a lot of inventory, all for In House purposes. They sell Engineering Services.

     

    Regina_Lend_A_Hand_Accounting
    Regina_Lend_A_Hand_Accounting
    Dec 6, 2018 9:22 PM UTC

    Materials that are used to build a finished good for sale can be setup as "Non-Inventory" parts and tracked in QBO as such. If I build a fence and sale it to a customer I would not charge them for the hammer and nails I used to build it with, but the hammer and nails would still be a cost of doing business, and I may still feel the need to track the inventory levels of my tools and supplies. If you purchase a good that you "resale" to a customer, this is a "Cost of Goods Sold".

     

    Of course you "can" track inventory for business use outside of A/R and A/P. If you don't sell your purchased inventory, it does not become a sale and income for your business. If you do not sell products that you purchase for your business, the cost of those products do not become a cost of goods sold for your business. "Inventory" is NOT defined as "Sales". Everything we purchase or sale in the course of doing business has a value and should be "accounted" for accordingly.

     

    If I purchase products that I use for research and development and sell information based on my findings, but don't sell any of the materials I purchased to perform the research, that does not change the fact that the materials I purchased were needed to perform the research and therefore become a "cost of services sold" when I sale my research findings as a "service".

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