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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