Quickbooks 2021 Tutorial for Beginners - How to Add Inventory

In this Quickbooks 2021 tutorial for beginners I show you how to add inventory. Adding inventory in Quickbooks is a crucial step to understanding what is profitable and what is not. This, in turn, will help drive your decisions for pricing and sales.
In this tutorial I show you all the basics of how to add inventory in Quickbooks, which starts with understanding Items and the Item List. Once you understand these concepts, adding inventory to Quickbooks 2021 will make sense and you will be on your way to having accurate books.
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[@QbuniversityOrg]

Hey, hey, it's Sunday! Please SUBSCRIBE and LIKE the video! And feel free to leave comments and questions here!

[@gabrielchristopher9363]

Good day Sir, you are just a mini god on earth. I really appreciate you so much and how versatile you are on QuickBooks. You are just a mentor to me. I will always stick to your channel because your presentation intro before you give the class of the day is awesome. It gets the viewers want to know more and how the task can be accomplished. Great job you are doing sir!

[@yhanne008]

Do you have to create inventory first before you can create a purchase order?

[@mjhult]

Yes you do

[@gabrielchristopher9363]

Good day Sir, you are just a mini god on earth. I really appreciate you so much and how versatile you are on QuickBooks. You are just a mentor to me. I will always stick to your channel because your presentation intro before you give the class of the day is awesome. It gets the viewers want to know more and how the task can be accomplished. Great job you are doing sir!

[@widizeiga3120]

definitely diving into your videos. Thank you so much for taking the ti to teach us that are green in the field. Have a great day

[@QbuniversityOrg]

Thanks you too!

[@beatricem1838]

Thanks, great video, nicely explained. I have just subscribed to your channel for more.

[@QbuniversityOrg]

Awesome thanks!

[@phuonglady5310]

So interesting. I like it

[@deman817]

Thanks man you are very helpful for us small business peeps

[@QbuniversityOrg]

You’re welcome!

[@moderndwellingsofGeorgia]

May I ask a question? In the new interface for Chart of Accounts, how do you associate an expense account with an income account? We're a home builder that does cost-plus, so each vendor invoice we pay has to be billed to our client. There is no "use for billable expenses" checkbox. How do you now make the association? Note: QBO Plus version, on a Mac with Chrome. Thanks.

[@sandracarroll754]

Question: How do I handle prepaid inventory in Quickbook? Situation: I placed an order for inventory items and paid with a credit card. My credit card is now due but I haven't received my inventory items (shipping issues). How do I handle that?

[@ravishcahaneea2724]

Hi @The Quickbooks University. In order to increase stock, we go through purchase orders and enter bill by items. However while entering a bill through the items rather than expenses part, it does not account the purchases, like DR Purchases, CR Accs Payables. It is only at the time of sales, when we sell 2 items of stock part, the 2 items are reflecting under purchases with (Qty 2 * stock price). How do we record the purchases amount together with the stock ??. please reply. Thanks!

[@sandipollard6484]

When re-ordering for example, another "Box" same item # but in a different dye lot, how would you enter it? By date?

[@GabrielaStef61]

If I purchase honey bottles in bulk and then sell the honey bottles by the piece, how do I count for the honey that fills the bottles, which is the product that fills the bottles?

[@missybarth4088]

I just found this video because I just purchased an existing business and I could not figure out their profit and loss. Thanks to this video I realized they have their inventory set up as COGS and Parts Expense Account. It was not set up to an income account. Now I am working on changing all the inventory to COGS and an income account.

[@QbuniversityOrg]

Great! I hope it was helpful

[@missybarth4088]

Do you have any video's that teach how to enter a bill that I was charged sales tax and shipping? Just curious if I enter the item under item and tax (I was charged) and shipping as an expense?

[@marketbuy]

Great videos! Thank you! Off Topic. My QB2021 will expire in January 2022. Currently, it has the new 2022 version update. Renewal is $349 with Intuit in Jan 2022. Currently, Costco has a sale for QB2022 for $199 with 15 months subscription. If I purchase QB2022 from Costco, do I simply use the new activation code on my current QB 2021-2022 version before it expires in mid Jan 2022? Is that how it’s done? Thank you 🙏

[@QbuniversityOrg]

You know that’s what I think would happen but most likely you just install the Costco one use their code, then open your file in the new install

[@axumcreative]

@The Quickbooks University what are your thoughts on how to add "Variations" to an inventory item? For instance a "rock n roll" t-shirt that is sold in variations of sizes like small, medium and large etc., I only want one inventory part number and same cogs account associated for all the shirts but need to add the "variations" in sizes under this inventory part number / item. What would you do?

[@QbuniversityOrg]

Well if you only have one inventory part for all sizes it’ll make it tougher to know when to reorder or make more? I would create the shirt and make the sizes sub items. Put all the items to the same cogs account

[@axumcreative]

@@QbuniversityOrg Gotcha, I am trying to track the sale/movement of each size within the overall inventory part #. I will look into sub items. Thanks

[@relevantragdoll98]

How to add more subitem options

[@nicktheengineer5976]

Thanks for this. How would you handle the naming of items of branded products? The 31 character limit is a real disadvantage of QB. Once the brand name is included there is not much left for the product name! Would you create an item that is the brand and then have all of the items of that brand as sub items?

[@QbuniversityOrg]

Yeah that actually is a good idea. Make the name brand the main item then create sub items for the various products.

[@louietoltolvlog9699]

@@QbuniversityOrg Hi. Is there a way I can see lowest item price i purchase in quickbook? We buy potatoes in 3 different vendors and have them in item list in qb. All different price. How do I see lowest potatoes cost of goods sold (item price)?

[@QbuniversityOrg]

@@louietoltolvlog9699 off the top of my head you’d probably have to pull a report of inventory purchase for that item, sort from lowest to highest and see it that way.

[@tammyweiland3729]

If I purchase construction materials to use for only a specific job, should I still add to Inventory Part - COGS 50400 or should I just enter it as Non-inventory Part and place it under, for example, Job Materials - Expense Account?

[@QbuniversityOrg]

Just enter as Job Material Expense. I would not inventory that

[@lovemyshepherd]

i'm looking for a video "how to" entry of bills and paying them. Also categorizing receipts to add up to that payment? Does that make sense?

[@QbuniversityOrg]

Here’s one kzbin.info/www/bejne/qIPIgoCZjJipqM0

[@QbuniversityOrg]

Here’s another one kzbin.info/www/bejne/nYKXaGaqpJ2ba9E

[@azizurrehman2145]

Very Good Explaination sir

[@QbuniversityOrg]

Thanks!

[@azizurrehman2145]

Plz give us link to download free quick book for learning purposes

[@QbuniversityOrg]

@@azizurrehman2145 there is not one for desktop, only QB Online

[@maricrisgaurano1096]

I find your video helpful to set up my inventory.... thank you But how can you add inventory on existing item list... I tried to edit but it can't be add

[@QbuniversityOrg]

You just right click on the Item List and click Add New

[@loisheld2631]

Can you have more than 1 inventory asset account #? In other words, is Inventory 106-00 the only Inventory Asset Account, or can you have additional Inventory Asset accounts? Thank you!

[@QbuniversityOrg]

You definitely can have more than one!

[@joymax7320]

Thank you for this video. How do you remove an item in inventory. ???

[@QbuniversityOrg]

Well, you can delete the item, but I would recommend making it inactive. It also depends on if you show any of that particular inventory on hand. If so, you will have to write it off. To make the Item inactive simply go to the Item List and right click on the inventory item and choose Make Inactive

[@joymax7320]

@@QbuniversityOrg Thank you so much

[@QbuniversityOrg]

@@joymax7320 welcome!

[@alexalvarez3569]

What's the best way to enter items if we sell them by the Each AND by the Dozen? And the Dozen also has a slightly discounted price than the each.

[@QbuniversityOrg]

I would set up 2 different items. One for singles and one for dozens

[@alexalvarez3569]

@@QbuniversityOrg But when keeping track of inventory, is there a way to combine them? Or will we have to track them separately?

[@QbuniversityOrg]

It depends on how you receive them into inventory. If you just get a bunch of roses then I would receive them all into the single rose item. Then create an assembly item that is a dozen to create a dozen inventory. If you don’t really keep “dozens” inventory then I would just have the single rose item and show 12 sold when someone buys a dozen and show the discount on the sales receipt.

[@akl9103]

Hi. Is this desktop or online? If online which QB level subscription would this tutorial be for?

[@QbuniversityOrg]

It’s desktop

[@paigeburch7914]

Good Afternoon! If I have inventory of 100X and I make an invoice of 75X, will quickbooks automatically take that 75X out of my inventory? then will my inventory show 25X?

[@QbuniversityOrg]

Yep

[@paigeburch7914]

@@QbuniversityOrg If I have 250 Gallons of Y at $6.00/gallon and 200 Gallons of Y at $5.50/gallon, will it keep those separate in my inventory?

[@QbuniversityOrg]

@@paigeburch7914 unfortunately it will average your cost

[@cherryfeebalanghig8691]

Hi i wish you could help me. In my QB, I create a summary report of purchase orders however the first purchase order I create becomes double and when tried to delete it will delete also the other one that has billed amount. Is it normal to have double purchase order?

[@QbuniversityOrg]

It’s not normal but what report are you looking at? Go to the chart of accounts and at the bottom do a quick report of the purchase orders and see if they are double there

[@cherryfeebalanghig8691]

Oh I see, thanks for the help. I'm just looking for a purchase order total amount and each purchase order total amount.

[@QbuniversityOrg]

@@cherryfeebalanghig8691 you’re welcome!

[@ConnieGoodson]

My question is I am just starting to use inventory. I have Multiple sites. I made my item list and site list. Entered my beginning inventory and it shows up in the Warehouse inventory. Then I transfter some of the begining inventory to another site. It show up in that site. Then I went to invoice the cusomers from the two sites and it has that I do not have inventory on hand to sell. Why?

[@QbuniversityOrg]

Does the inventory on hand report show that you have the inventory showing? Are you pulling the right Item on the invoice? Is the date on the invoice before the date of the inventory transfer?

[@ConnieGoodson]

Thanks for helping. To answer all your questions yes inventory shows up and I have the right items. The invoice date was not before the transfer date. I did put inventory in Dec and invoiced in Jan. I changed the inventory dates to Jan and it seems to be working. Not sure why it would not bring inventory forward??? Thank you for your comments. Connie

[@QbuniversityOrg]

@@ConnieGoodson glad you got it to work!

[@jijimelody8658]

Hi! Can I ask, what if there is no inventory part in the item list type

[@QbuniversityOrg]

There should be? What version do you have?

[@ellenwinter9591]

How do you create GST or HST reports and file tax to government once a while?

[@QbuniversityOrg]

That’s going to be a sales tax function in QB. I would search for videos on that topic.

[@ellenwinter9591]

@@QbuniversityOrg thank your for your help 🙏 😊

[@QbuniversityOrg]

@@ellenwinter9591 welcome!

[@mukidmunna]

Is there any way to Add inventory for bulk product with variable quantity (Kilograms) per Bags. I need to track the number of bags. But I sell in kilogram to my customers. In invocie I need to show the total number of Bags as well the weights of each bags.

[@QbuniversityOrg]

You can set up a unit of measure for the inventory. Have you done that?

[@mukidmunna]

@@QbuniversityOrg yes. But It didn’t solve my problem. Each of my Bag contains different weights of products. So how to solve this

[@QbuniversityOrg]

@@mukidmunna what if you took it into inventory based on weight?