Then enter the part name or number for the inventory item into the “Item Name/Number” field. Select “Inventory Part” from the “Type” drop-down at the top of the window within the list that appears automatically when you open the window. To create a new “Inventory Part” within QuickBooks, click the “Item” button in the lower-left corner of the “Item List” window and then select the “New” command from the pop-up menu to open the “New Item” window. However, if you have items that you purchase from a vendor, hold as inventory, and then resell to customers, you can set up those items as “Inventory Parts” for ease of tracking in QuickBooks. You cannot show inventory value for a manufacturing company or where the inventory value is changed as it goes through a process, as it is simply too complex for QuickBooks to compute. You can set up “Inventory Part” items within the Item List to create items for which you want to track the quantity and value in QuickBooks. You can display the Item List by selecting “Lists| Item List” from the Menu Bar. You use the Item List to add, edit, delete, and inactivate inventory part items. QuickBooks tracks the quantity and value only for “Inventory Part” items within the Item List as you sell or reorder the items. In order to track inventory, you must enter each item that you want to track as an “Inventory Part” within the Item List. As you order, receive, and sell inventory items, QuickBooks records each inventory-related transaction and adjusts the inventory quantity and value accordingly. With QuickBooks, you can track the number of items in stock and the value of your inventory after every purchase and sale. The average cost of the inventory equals the total cost of the items currently in stock, divided by the number of items in stock. QuickBooks cannot use FIFO or LIFO methods. If inventory is enabled, QuickBooks uses the average cost method to determine the value of inventory. Click “OK” to set your default inventory preferences. Then set any additional default settings needed for inventory and items. To the right, click the “Company Preferences” tab and make sure the “Inventory and purchase orders are active” checkbox is selected in order to enable inventory-related features in your QuickBooks company file. In the “Preferences” dialog box, select “Items & Inventory” from the scroll box at the left side of the window. You can enable inventory within your company file and view the default inventory preferences, by selecting “Edit| Preferences…” from the Menu Bar. Click here for the complete training tutorial!įor many companies, inventory is enabled if you create your company file using the “EasyStep Interview.” However, if you did not enable inventory when you created your company file, you can enable it at a later point in time.

Quickbooks contractor pro 2014