In This Chapter
Using the Item list to track inventory
Keeping inventory as you purchase items
Keeping inventory as you sell items
Using purchase orders to help track inventory
Adjusting inventory records to reflect what's really in stock
Dealing with multiple inventory locations
Taking the lazy person's approach to inventory
For small and growing businesses, inventory is one of the toughest assets to manage. First, of course, you need to physically care for stuff. Second, you have to make sure that you don't run out of some item or have too much of some other item.
QuickBooks (unfortunately) isn't all that sophisticated in its inventory management features, but it is easy to use. And with a little jiggering, you can probably get it to work in any simple case. (The one tricky part that I talk about a little later in the chapter is what you can do when you keep inventory in multiple locations, but I'm going to hold off on that discussion for a bit. That'd be like jumping off the deep end of the dock before you learn to swim.)
If you want to make inventory accounting really easy and don't care about a bit of imprecision, take a peek at the last section of this chapter, "The Lazy Person's Approach to Inventory."
Before you can track your inventory, you need to do two things. First, you need to tell QuickBooks that you want to track inventory. To do this, choose Edit
Figure 7.1. The Preferences dialog box for Purchases & Vendors.
Here's the ...