Setting Up Inventory Items

When you set up an inventory item in QuickBooks, you provide descriptive information about the item as well as basic facts such as cost, sales price, sales tax treatment, and preferred vendor. In addition, you have the option of indicating how many of these items you prefer to keep in stock so QuickBooks can warn you when stock is running low. All inventory items must be set up in this manner before you can refer to the items on forms such as purchase orders, invoices, and bills.

Select Item List from either the Lists or the Customers menu.


You can also click the Items & Services icon found in the Company area of the Home page.

Press Ctrl+N.

Select Inventory Part from the Type drop-down list.

Did You Know?

Entering the cost is optional. If the amount you pay for this item varies, leaving the cost field blank and entering the cost when you enter a bill from your supplier might be easier.

Did You Know?

You can indicate the quantity of inventory items on hand. When you set up a new inventory item, you have the option of entering the number of items on hand. Based on the purchase price you entered, QuickBooks calculates the value of the items on hand. This feature is available only when setting up a new item. To change the quantity on hand after the item has already been set up, see "Adjusting Inventory Quantities" later in this chapter.

Enter the name of the item as it will appear on your inventory list.

Enter the name of the item as it appears on purchase orders and bills when you purchase this item.

Enter the Manufacturer's Part Number if you know this information.

Enter the cost you pay when you purchase this item.

Enter the cost of goods sold (COGS) account that will be charged when you purchase this item.

Enter the vendor where you prefer to shop for this item.

Enter the name of the item as it appears on invoices when you sell this item to your customers.

Enter the sales price you charge for this item. If the price varies, you can leave this blank.

Change the Tax Code option if necessary to indicate whether the sale of this item is subject to sales tax.

Enter the income account that is credited when a customer purchases this item.

Enter the asset account that is increased when you add this item to your inventory.

If you want to be reminded to reorder this item, enter the quantity of items that represents the cutoff for reordering.

Click OK.

Show Me. QuickBooks 2006
Show Me QuickBooks 2006
ISBN: 0789735229
EAN: 2147483647
Year: 2005
Pages: 328
Authors: Gail Perry © 2008-2017.
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