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Inventory Tracking in QuickBooks

kimberly kelly's Profile

One of my clients is having an issue with QuickBooks Inventory.  They are entering inventory purchases via the "write checks" function and entering the appropriate items/quantities/prices on the "items" tab.  The "expense" tab is left blank.

QucikBooks seems to automatically be populating the expense tab with a duplicate cash transaction.  We think it is because the quantity for a particular sku was entered incorrectly and then more units were sold than what was on hand (e.g. they bought 100 units, but entered it as 10 and then sold 90). 

Has anyone seen this happen before?  What kinds of processes have you put in place to prevent this? (QB will even go back and change an amount on a check that has been cleared through then bank recon process and/or for a prior period that has been "closed" in QB.  Any wisdom would be greatly appreciated!


Steve Cassady
Title: CFO/Owner
Company: Cassady Consulting
(CFO/Owner, Cassady Consulting) |

A couple thoughts:
Did your client use the PO function when they ordered the inventory items. If so, there is a different process you go through versus directly to write checks.

Also, you may want to see how items are set up. For example, if you order in cases and sell units, you need to have that set up properly.

Jeannie Johnson
Title: Owner
Company: Johnson & Associates
(Owner, Johnson & Associates) |

I have seen the expense tab populate when you are using the items tab and the vendor has been used in the past to purchase expense items. If the preference is selected to remember the last purchase from the vendor it may be adding that line or lines to the expense tab. It may help to fill in the check on the items tab and then click over to the expense tab to make sure that there aren't any lines there. If there are just delete them and save the check.

If your client is not using the PO function, you may want to encourage them to do so. It will simplify the inventory process and give them better tacking.

Ron Stevenson
Title: VP Operations & Finance
Company: Blue Slate LLC
(VP Operations & Finance, Blue Slate LLC) |

We have found the PO and Receiving functions to be quite robust in QB. We set up inventory items in QB, issue PO's to the vendor and receive them in inventory as soon as they arrive. The A/P is recognized at that point based on vendor terms (brings visibility to cash flow needs). When the material has passed incoming QC and the vendor invoice comes in the invoice is processed against the receiving transacation and is ready to be paid when due. You can always see what you have received, what is open on PO's (late) and where you may have missed invoices. Payment of invoices due is then separated from the receiving and inventory transactions as it should be.

Anna Bielecki
Title: Chief Financial Officer / Controller/Sen..
Company: ToBe Enterprises
(Chief Financial Officer / Controller/Senior Consultant, ToBe Enterprises) |

The QBinventory user need to follow the recommended flow of processes: PO (optional), receive inventory with bill or without bill, enter bill, bill payment. Otherwise your client will experience many mistakes on their books. The cleanup afterwards is difficult and can be costly because usually QB advisors need to be involved. QB has simple and short manual for this function included within help menu. Highly recommend all your client’s users to view it.
Let me know if you need detailed information. I implement QB for manufacturers, wholesalers and distributors, and contractors who use inventories. It works and it's easy.

Benjamin Mcfarland
Title: Manager
Company: Openul
(Manager, Openul) |

The fundamental part for any business to gain success is Inventory management. Inventory quantities are automatically updated when we buy and sell products. What is selling and what to reorder should be clearly visible to have growth in any business. It became easy to check the selling prices, quantity and cost of any particular product if inventory item is added. QuickBooks helps you to manage all inventory details in one place, even it gives you flexibility to print customized checks like the one available at and eliminate the need of writing checks manually for paying vendors, employees, clients etc. It keeps accounting up-to-date, no more need of entering inventory numbers into spreadsheets manually, and all things will take place automatically within second.


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