How to Enter Physical Inventory and Enter Beginning Merchandise Inventory in QuickBooks Pro

QuickBooks enables users to easily maintain their inventory. Read the complete article to know how to “enter physical inventory and enter beginning merchandise inventory in QuickBooks Pro“.

Users also can manage to manufacture by using the tools provided for inventory management. Further, these tools can enable Electronic Data Interchange (EDI in short) throughout your organization. In lieu of this, Intuit has also updated QuickBooks with smart search, a tool that analyzes user preferences and search patterns to increase proficiency.

QuickBooks Physical Inventory

Manufacturers and retailers often rely on expensive software that does not deliver according to their expectations. QuickBooks, on the other hand, can take care of both, accounting and inventory management. It’s like shooting two ducks with one bullet. Further, users can purchase inventory directly through QuickBooks. Through QB, you can create a list of items and send them to the vendor. Upon receiving these items you can initiate the payment directly from QuickBooks. Further, these bills are saved and can be used for creating reports.

How to Enter Physical Inventory in QuickBooks Pro

One of the great things about QuickBooks Pro is that you can use it to track your physical inventory as well. This means that you can keep track of how much merchandise you have in stock and how much money you are spending on inventory each month.

  • Open inventory menu
  • Select Start Physical Inventory
  • Use the barcode scanner provided with your QuickBooks POS system to scan all the inventory items.
  • By doing so, users can easily register each item into QuickBooks along with their quantity.
  • You can also purchase this scanner separately from Intuit.
  • Users can also enter physical inventory manually though this will be a lengthy process and can result in errors.
  • Bar Codes store all information regarding particular items.
  • Each item has a unique barcode which QuickBooks POS identifies in order to input all data automatically.
  • Users who want to manually enter all the data can select ‘Add Counts by Hand’ or ‘Entering Counts Directly.
  • ‘Now users need to upload the data collected from the bar code scanner to the POS system.
  • For doing so, users can follow these steps:
    • Connect the Scanner through a USB cable to the main POS system
    • Switch on the scanner
    • Start POS and open the Inventory menu.
    • Select Physical Inventory
    • Click on Add Counts from Scanner.
    • On-screen instructions will appear that can be easily followed by the user
    • If you wish, you can clear the memory of the scanner after all the data has been uploaded.
    • If you do not delete data from the scanner, all of it will be recorded again during the next entry, thus leading to double entries of some transactions
  • View the summary and analyze any inaccuracy that might have occurred while manually entering data.
  • You can also check the item count of inventory and make changes to them.
  • After ensuring the accuracy of data, click on save and close.

QuickBooks saves data automatically while users are entering the items along with counts. This is done to ensure that data is saved even if QB crashes. You can pause the task or even close QuickBooks and edit the physical inventory after a while. QB POS informs users about similar transactions or double entry of items. Clear Counts and Restart can be used for clearing the item count record. Users can initiate counting as soon as QB refreshes.

Add Counts by Hand

Users can enter counts manually by selecting this option. It is considered the most efficient way of manually entering items and counts in QuickBooks POS. Follow the steps given below to Add Counts By Hand.

  • Open Inventory Menu
  • Select Physical Inventory
  • Click on Add Counts by Hand
  • Here users will be provided with two options. Upon selecting the correct option, users can proceed with the next step. The two options are as follows (cycle through the cells by pressing enter):
    • Go to Quantity Field: Every Time the user hits enter, the cursor cycles through the item and counts field. It’s easy, just feed in items and hit enter, then enter counts and repeat the process.
    • Add item: Users will be shifted only through the Item Name field. All you need to do is enter the item name or number in the fields. In this case, users need to make multiple entries for each item. QuickBooks will then figure out the count of each item automatically.
  • Start entering the items and let QB do the rest of the work.
  • Hit Save and Exit.

Though this method isn’t as fast as entering Physical inventory through the bar code scanner, still it is the fastest alternative available to QB POS users. Users who have selected the ‘Add Item’ method can also change counts while entering data. The delete option is provided alongside each individual item.

Edit Counts Directly

By choosing this option, users can create the whole inventory list by manually entering both the counts and items. This isn’t a viable option for recording a large amount of data. To edit counts directly, follow the steps given below:

  • Open Inventory Menu, a drop-down list will now open. From here, select the option that says physical inventory.
  • Enter Inventory items and counts and then use the following functionalities to group and organize items:
    • Filtering: QB POS systems allow flexibility for users to add item names and counts in multiple fields. These fields are then united with the filtering option. QB automatically organizes data according to the selected filters. There are multiple filters provided for making the search easier. Further, users can also filter on the basis of the count of items. Custom filters can be created with QB POS by following the steps given below:
      • Click on Create a Custom Filter.
      • Select the values that you want to use. You can also enter custom attributes as filtering options.
      • Click on Apply and Save. Use these custom filters while organizing or grouping items in QB POS.
    • Sorting: Sorting options can be used for arranging items on the basis of filters. Users can click on arrows provided beside column fields to sort data. You can also edit the filter applied while sorting data. Data can be easily sorted on the basis of count or date added. Further, users can also display entire data by sorting it according to name, type, or any other identifier. Users would be required to select particular columns before scrolling and viewing the data. Data can only be viewed for a single column at a time.
  • Click on Save and Close.

Once the data is entered, click on preview and check for discrepancies. Manually entering data augments the chances of encountering inaccuracies.

How to Enter Beginning Merchandise Inventory in QuickBooks?

QuickBooks Online can track the amount, income, and cost of products sold for your stock. Though tracking is fine you can also record and edit your stock from time to time. If you have been wrongly tracking your merchandise then most likely the problem must be with your beginning balances. If you don’t already know then today we will figure out “How to enter beginning merchandise inventory in QuickBooks”.

The stock element is accessible in QuickBooks Online. You can explore the information import page to turn on the stock following. Once chosen, you will see an extra message giving data about different settings that you will be required to change for tracking inventory.

Steps to enter beginning merchandise inventory in QuickBooks

  • Choose Gear Icon, select the Accounts and Settings option
  • Select Sales from the left bar.
  • Check the option ‘Track Quantity on Hand’
  • Click Save.

Once the Inventory is enabled, the beginning merchandise has to be added:

Items and Services is the area where you can see every one of your items and administrations together alongside the accessible amounts, costs, offering costs, and so on. To get to the Products and Services Page, tap on Company Gear Icon > List > Products and Services in the upper right-hand corner of the page.

Once on this page, you can include singular things by tapping the New catch or you can import from Excel in mass (by tapping on the Import sub-catch under New). As expressed before we Consultant the capacity to utilize three sorts of items and administrations: Inventory, Non-stock, and Service. In the event that you want to track stock amount close by and costs, you will need to utilize the Inventory sort.

Follow the steps to add a new Inventory item

  • From Gear Icon, select Products, and Services.
  • Click New
  • Select Inventory Item
  • Enter the Name and upload the image of the product.
  • Upload the initial quantity in hand including the date.
  • Utilize the Inventory Asset Account drop-down bolt to pick or include an Asset account. This record must be of the Inventory detail sort. See our insight base article Account detail sorts for ventures to change the detail sort if fundamental.
  • In the Sales Information area, pick or include an Income account. This record must be of the Sales of Product Income detail sort; see our insight base article Account detail sorts for ventures to change the detail sort if vital.
  • In the Sales Information segment, enter a Sales value/rate for this item (discretionary).
  • In the Purchasing Information segment, pick or include the Cost of Goods Sold record.
  • In the Purchasing Information area, enter a default buy Cost for this item (discretionary).
  • Snap Save.

Here are a few essential points which are important to remember at the time of adding inventory merchandise:

  • Recording the sales of a stock diminishes the estimation of the Inventory Asset account by the first cost of the item and decreases the Number of Hand units for it.
  • The price estimation of a stock/merchandise in your books is the sum you paid for it.
  • Recording the purchase of stock builds the estimation of the Inventory Asset account on your Balance Sheet report by the cost of the thing and expands the Number of Hand units for that thing.
  • Recording this deal also builds the Cost of Goods Sold record (COGS) by the first cost of the item and expands the Sales of Product Income account by the sum your client paid you for it. The contrast between the wage sum and the COGS sum is your gross benefit on that thing.