Advertise here    

QuickBooks Forums      

Go Back   QuickBooks Forums > QuickBooks Software Support > QuickBooks Enterprise Edition Forum

Thread Tools Rate Thread Display Modes
Old 12-02-2016, 09:15 AM
rocketstuff rocketstuff is offline
Registered User
Join Date: Nov 2016
Posts: 7
Should I use QB's Inventory tracking?

I'm wondering if someone can advise on if I should use QB's Inventory tracking (i.e. perpetual inventory) or non-inventory parts (periodic inventory).

I sell my own custom manufactured skin care products online.

I order the boxes from one manufacturer and the product from another, they are then put together to create the final item (i.e. jar of creme, in box).

Question #1

I am thinking because of this I must use Quickbooks inventory feature and "assemble" the products using Quickbooks assembly items?

Question #2

I will be importing sales from my third party credit card merchant account. When importing an IIF file can I set it that a sale transaction posts the relevant item from inventory to COGS?

Or would this be achieved by posting $0 value sales summaries at the end of each month to post inventory to COGS?

Thanks in advance!
Reply With Quote
Old 12-02-2016, 10:54 AM
Joe Williams Joe Williams is offline
Registered User
Join Date: Jan 2006
Location: Oklahoma
Posts: 9,383
Are you going to the invoicing from QuickBooks to enter the sales?
If so then use the inventory section and you will have to "assemble" the product before selling it.
Joe Williams
Piedmont, Ok
Reply With Quote
Old 12-02-2016, 11:03 AM
rocketstuff rocketstuff is offline
Registered User
Join Date: Nov 2016
Posts: 7
No I'll be importing transactions from my third party cc gateway.

I'm kinda confused on when importing sales transactions if QB will try to post the COGS at the same time or not?
Reply With Quote
Old 12-03-2016, 04:48 AM
Rustler Rustler is offline
Registered User
Join Date: Feb 2008
Location: Texas - The Republic
Posts: 2,410
@ rocket

Non-inventory can be used for periodic inventory if you undertand the year end entries you have to make. But the default is that non inventory items is just an expense item.

I would
Stock the box and bottle as inventory - that allows you to contol qty on hand and ordering

In premier desktop, the assembly item would be used to make the product you sell from those two inventory items.

You have to find out what exports from the merchant account, there is no way we can know that.

You bring up periodic, there are two ways to do periodic inventory, choose one and stick with it, you can not mix and match

1. (my preference) Create an asset account called purchases and post all purchases of item for resale to that account. Periodically, weekly, monthly, etc value the inventory on hand, subtract that value from the amount shown in the purchases account and do a journal entry for the answer to the subtraction
debit COGS for that value
credit purchases for that value


2. Post all purchases to COGS. Periodically, but at least at the end of the year, you value the inventory on hand and do a journal entry.
debit the asset purchases account for that value
credit COGS for that value

Print the P&L
then reverse the journal entry
debit COGS for that same value
credit the asset purchases account for that value

This last journal entry, moves the value of what was on hand at the end of year back to COGS so the cost will be counted against the new year sales.
Reply With Quote

Bookmark and Share
Thread Tools
Display Modes Rate This Thread
Rate This Thread:

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is Off
HTML code is On

Forum Jump

All times are GMT -5. The time now is 12:01 AM.


Powered by vBulletin® Version 3.8.4
Copyright ©2000 - 2018, Jelsoft Enterprises Ltd.
All contents copyright (c) by AccountingUsers Inc.