Managing Inventory with QuickBooks: Order, Receive, and Adjust

To manage inventory using QuickBooks, enable purchase orders, create and send them to suppliers, then record received inventory to update quantities.

### How to Manage Inventory in QuickBooks Using Purchase Orders and Adjustments
* 📦 To manage inventory in QuickBooks, you can **order new inventory whenever you're running low** and account for it using a **purchase order**.
* 🛒 To create a purchase order, ensure you have purchase orders enabled in QuickBooks, then go to Sales, Products and Services, and **open a purchase order for the products you need to reorder**.
* 📧 You can customize the purchase order, add items, adjust quantities, and send it to your supplier. The purchase order itself **does not change your inventory levels**.
* 💵 When you receive the inventory from your supplier, you'll need to record it as an **expense, a check, or a bill** in QuickBooks to adjust your inventory quantity and handle the accounting.
* 🔍 If the actual inventory on hand differs from what's in QuickBooks, you can make adjustments. Find the product, select "**Adjust quantity**," enter the **actual quantity**, and choose an **inventory adjustment account**.
* 📉 The default account is "**Inventory Shrinkage**," but you can create a more descriptive account based on your needs.
* 👩 It's important to consult your accountant before making inventory adjustments, as they will **impact your financial statements**.
* 🚀 Once you've set up and understood how to use **purchase orders** and make **inventory adjustments** in QuickBooks, you're ready to **effectively manage your inventory**.

if you are using QuickBooks to manage your inventory, then you can order new inventory whenever you're running low. Let's go over how to order and account for new inventory using a purchase order. Then we'll go over what to do when you receive your new inventory. Finally, you'll see how to make adjustments to your inventory if QuickBooks thinks you have more or less than you really do. To start, let's make sure you have purchase orders enabled in QuickBooks. Select Settings, then Account and Settings. Click on the Expenses tab. If purchase orders are not set to on, select Edit and enable Use Purchase Orders. You can also add custom fields, enable custom transaction numbers, or create a default message for all purchase orders. When you are ready, press Save and Close the Settings window. Now let's get started. Go to Sales, then Products and Services. Here you can see which products are low or out of stock. If you see a product you need to reorder, select the arrow next to Edit and Reorder to open a purchase order. If you want to include multiple items on

the same purchase order. You can select them all. Then, under batch actions, select reorder. Select the supplier you want to order from. If you set up a preferred supplier for your product, you'll see one selected already, but you can change it if you need to. The shipping address is your address, but if you do drop shipping and you want your order delivered directly to a customer's address, you can select the customer under ship to. Fill in ship via if there is a specific carrier you want your supplier to use. Under item details, enter all the items you want to order. Enter in the quantity you want to order. Notice that if you hover over this, QuickBooks will show you how much you have on hand and your reorder point. You can adjust the rates and amounts for individual products as needed. You can also add more products to the PO. Just select them from the drop-down menu or add them if you don't see them. You can also add a message to your supplier, a memo, or add an attachment. Once you're finished, you can save and send to your supplier or select

another save option and send it later. Here is a customizable email that QuickBooks will send to your supplier along with the purchase order. If everything looks good, select send and close. If you go to expenses and suppliers, you can see your new purchase order listed here. Once you've sent it off, your supplier can start processing your order. A purchase order itself does not change your inventory levels. It's just an order with your supplier. When you actually receive your inventory from your supplier, you'll need to record how you paid for it. You can enter it as an expense, a check, or a bill depending on how you are paying for the inventory. This is what actually adjusts your inventory quantity and handles all the accounting. If you've received and paid for the inventory already, then you'll enter a check if you've paid by check or an expense if you've paid by any other method. If you haven't paid yet and your supplier has given you a bill with a due date, then enter a bill. These methods are all very similar. For this example, we'll enter a bill.

there are videos with more details on how to record bills, checks, and expenses. At the end of this video, select your supplier. Since you have an open purchase order with them, you'll see it over here. Select add to add the details of the purchase order to your bill, check, or expense. If the amount of inventory you received or the price you paid for it is different than what was on the purchase order, you can change it here. Once you are finished, select save option. Now, if you go to sales and products and services, you'll see that QuickBooks updated the inventory quantity on hand based on your purchase order and the subsequent bill. One final note about managing inventory: if the amount of inventory you actually have on hand is not the same as what's in QuickBooks, you can make an adjustment. Find the product, select the arrow next to edit, then select adjust quantity. You'll see the product here and the amount QuickBooks thinks you have on hand. Here, enter the number you actually have, then choose inventory adjustment account. This tells QuickBooks where the value of

the missing inventory should go. The default is inventory shrinkage, but you can create a more descriptive cost of goods sold or an expense account for things like theft, spoilage, or charitable contributions if you prefer. This will affect your financial statements, so you should consult your accountant before doing this. Once you are finished, select a save option, and you'll see that QuickBooks has adjusted your inventory. Now you are ready to start managing your inventory with QuickBooks.

How to manage Inventory in QuickBooks Online

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Managing Inventory and Purchase Orders in QuickBooks

You can easily order new inventory in QuickBooks by enabling purchase orders and using the Sales menu to identify low or out-of-stock products.

When creating a purchase order, you can select the supplier, enter the items and quantities you need, and add a custom message if necessary.

QuickBooks also allows you to make adjustments to your inventory and account for any discrepancies in stock levels, ensuring accurate record-keeping.

Managing Purchase Orders and Inventory Payment in QuickBooks

QuickBooks allows you to send a customizable email to your supplier along with the purchase order and track it in the system.

A purchase order itself does not impact inventory levels, as it is just an order with the supplier.

The actual adjustment of inventory quantity and accounting is done when the inventory is received and paid for, which can be recorded in QuickBooks as an expense, a check, or a bill, depending on the payment method.

Managing Inventory in QuickBooks: A Step-by-Step Guide

Videos provide detailed instructions on recording bills, checks, and expenses in QuickBooks, including how to add purchase order details and make inventory adjustments.

QuickBooks can automatically update the inventory quantity on hand based on purchase orders and bills, but it also allows users to manually adjust the inventory quantity to match the actual amount on hand.

QuickBooks allows for the tracking of inventory shrinkage and offers the option to create a more detailed cost of goods sold.

It is important to consult with your accountant before making these changes, as they will impact your financial statements.

Once the adjustments are made, QuickBooks enables effective inventory management for your business.