Tutorial #QB4-2: Adding an Inventory Item
In order to sell your inventory items to customers and purchase inventory items from your vendors, you must identify what these items are to QuickBooks. Providing as much information as possible when you set up an inventory item will make the process of creating other forms in QuickBooks very efficient.
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Step 1: Open the Item List
Choose Item List from either the Lists or the Customers menu. The Item List window will appear. Information on this list includes name and description of items, type of items, the income account in which sales of this item are recorded, the quantity on hand, and the sales price per item.
Step 2: Add New Inventory Item
Click the Item button at the bottom of the Item List window, then click on New. The New Item window will appear.
Step 3: Choose Item Type
You must select a type from the Type list provided. For inventory items you will select Inventory Part as the Type.
Step 4: Indicate Item Name or Number
Enter a name by which you will identify this item when you request the item on sales and purchase forms. If this item is to be a sub item of another item, check the Subitem of checkbox and enter the master item to which this item will relate.
Step 5: Enter Purchase Information
Enter the description which will appear on purchase orders and bills when you purchase this item from your vendors. Enter the cost that you pay when you purchase this item. Choose an expense account (COGS, Cost of Goods Sold, is the account QuickBooks will attempt to choose in this field - you can override this choice if your account has a different name). Enter a preferred vendor from whom you purchase this item. All of the fields in this section, except the expense account field, are optional.
Step 6: Enter Sales Information
Enter the description which will appear on sales invoices and estimates when you sell this item to your customers, or you can use the purchase description which automatically appears here. Enter the price at which you plan to sell this item. Indicate by checking the box whether or not sales of this item are taxable. Choose an income account where sales of this item should be reflected. Entering all of the information in this sales section is optional except the income account field.
Step 7: Enter Inventory Asset Information
Indicate the Asset account in which the value of the inventory items you have on hand will be recorded. If you like, you can enter a reorder point. If you use this field and you attempt to make a sale that causes your inventory to drop below this point QuickBooks will warn you that it is time to reorder your inventory item. Also you will be reminded on your Reminder List to reorder inventory when quantities drop below this point. Enter the quantity of items on hand as of the date indicated.
Step 8: Save Your Entries
Click OK if you are ready to close this window and save your entries. Click Cancel to close this window without saving your entries. Click Next to save your entries and enter another new item.