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Aaron Woolley

Aaron Woolley

Setting Up Inventory

Slide Duration:

Table of Contents

I. Introduction
Bookkeeping Basics

10m 25s

Intro
0:00
The Accounting Equation
0:10
Assets
1:15
Liability
2:19
Equity
3:11
Debit vs. Credit
4:10
T Account
4:40
How Your Bank Treats Your Account
5:02
Your Books
6:08
Chart of Accounts
7:15
Balance Sheet Accounts: Assets
7:25
Balance Sheet Accounts: Liability
7:40
Balance Sheet Accounts: Equity
8:22
Income Statement Accounts
9:03
Income
9:06
Expenses
9:26
Net Income
9:48
Getting Started

16m 34s

Intro
0:00
Using Forms
0:13
How to Edit Customer Form
1:06
How to Edit Vendor Form
1:37
Using Lists
2:34
Customer Lists
2:39
Vendor Lists
2:47
Employees Lists
2:59
Using Registers
3:16
Check Register
3:22
Chart of Accounts
3:40
How to Use Register
6:27
Getting Around QuickBooks
7:54
Navigating Through the Home Screen
8:08
Managing Employees
9:59
Managing Open Windows
11:23
The Menu Bar
12:02
The Icon Bar
12:28
QuickBooks Centers
12:50
Customers, Vendors, Employees Center
12:53
Banking Center
13:06
Report Center
13:38
Lead Center
13:46
Search Information
14:17
How to Search for Information on a Customer
14:28
The Homepage & Workflow
15:12
The Chart of Accounts: Assets, Liabilities, Equity
15:37
How to Access Chart of Accounts
15:45
Setting Up QuickBooks

20m 51s

Intro
0:00
The Express Start
0:23
Create New Company
0:49
Entering Company Information
0:55
Enter Business Contact
2:24
Preferences
4:16
Adding Contacts
4:22
Adding Products and Services
4:28
Adding Bank Accounts
5:26
Review the Chart of Accounts and Customize
6:10
Check Chart of Accounts Set Up
6:48
How to Add To Chart of Accounts
7:20
Entering Bank Accounts and Opening Balances
8:00
Edit New Bank Accounts
8:28
Add New Bank Accounts
8:52
How To Open Balance
9:58
Adding Customers
10:27
How to Add New Customers
11:05
Adding a Job
12:33
Add New Job For Customer
12:50
Adding Vendors
15:01
Access Vendor Center
15:17
Add New Vendor
15:33
Adding Additional Accounts
16:33
Adding New Accounts in Chart of Accounts
16:53
Adding Items (Products & Services)
18:06
Add New Item to Sell
18:45
II. Working With Lists
Working With Lists, Part 1

31m 24s

Intro
0:00
Editing The Chart of Accounts
1:08
Edit Account
5:10
Adding Subaccounts
6:17
New Subaccount
7:50
Working with Customers & Job Lists
11:32
Add new customer
13:25
Providing Additional Customer Information
17:50
Providing Customer Payment Information
22:10
Working with the Vendor Center
24:08
Add new vendor
25:50
Providing Additional Vendor Information
28:28
Working With Lists, Part 2

46m 1s

Intro
0:00
Working with the Employee Center
0:24
Add new employee
2:01
Add contact information
4:02
Additional employee information
5:31
Employment information
6:26
Adding Custom Fields for Customers, Vendors, Employee List
7:28
How Many Lists You Can Add And For Who
8:46
How to Add Customer List
9:35
Define Fields
10:37
Adding Custom Fields for Items
13:26
Open Item List and Edit
14:15
Define Fields/ Setup Custom Fields For Items
15:54
Managing Lists
17:01
Ways to Sort Lists
17:14
Add Items to Chart of Accounts
17:32
Add Owner's Equity, Draw, and Contribution under Equity Account
17:59
Sorting Lists Manually
19:31
Making Sub Accounts
20:35
Sorting Lists
23:26
Sorting Lists in Ascending or Descending Order
23:54
Sort by Name, Balance, etc., Ascending or Descending
24:26
Merging List Items
26:08
Merging Vendor Example
26:53
Renaming List Items
28:55
Renaming Item Example: Checking Account
29:13
Deleting List Items
29:56
Deleting Customer Example
31:19
Viewing Inactive and Active Customers
32:32
Printing a List
33:26
Printing Customer List
33:58
Printing for Just One Customer
34:40
Print Particular Info for One Customer
35:08
Adding or Editing Multiple Items at One Time
37:04
Example: Changing a Zip code
37:39
Working with the Lead Center
41:43
Finding the Lead Center
42:09
Add New Leads
43:05
Add Multiple Contacts to Lead Center
44:34
Convert a Lead to a Customer
45:16
III. Accounts
Working With Bank Accounts

29m 11s

Intro
0:00
Writing a QuickBooks Check
0:30
Amount field
3:59
Other fields
5:27
Print check
7:00
Using Bank Account Register
7:40
Entering a Handwritten Check
9:45
Transferring Money Between Accounts
16:33
Funds Transfer Option
17:24
Transfer with Check Register
19:18
Marking Cleared Transactions
20:57
Bank Statement
23:31
Reconciliation Summary
26:11
Viewing Cleared Checks in the Register
27:05
Searching for Specific Check Amount
27:40
Using Other Accounts in QuickBooks

13m 25s

Intro
0:00
Other Account Types in QuickBooks
0:36
Tracking Credit Card Transactions - Entering Credit Card Charges
0:58
Reconciling Credit Card Statement
3:52
Reconcile Credit Card
5:00
Marking Cleared Transactions
5:57
Paying a Credit Card Bill
8:11
Entering Bills
8:34
Writing a Check
10:15
Using Other Accounts: Assets & Liabilities

30m 16s

Intro
0:00
Working with Asset Accounts: Setting up an Asset Account
1:24
Add New Account
2:30
Enter Opening Balance
4:34
Setup Asset Account to Track Depreciation
7:33
Add Subaccounts: Cost & Depreciation
10:32
Enter in Depreciation of Transactions
13:01
Working with Liability Accounts: Tracking a Loan / Long Term Liability
15:39
Add Long Term Liability / Loan Account
17:09
Tracking Fixed Assets
20:29
Add New Asset
21:36
Recording a Payment on a Loan
24:23
Understanding Equity Accounts
27:03
Add New Equity Account
29:20
IV. Sales Information
Entering Sales Information, Part 1

24m 23s

Intro
0:00
Using Sales Forms - Various Types of Sales Forms
0:07
Invoice Overview
0:56
Sales Receipt Overview
3:09
Generate Statement
4:38
Choosing a Template for Sales Forms
6:00
Filling in Customer Information
7:54
Create an Invoice
8:04
Invoice in Accounts Receivable Ledger
10:28
Repeating a Sale - Memorized Transactions
11:36
Memorize Invoice
12:52
Memorized Transaction List
14:01
Batch Invoices
14:55
Create Batch Invoice
15:21
Entering a New Service Item
20:13
Add new service
21:25
Entering Sales Information, Part 2

12m 33s

Intro
0:00
Using Multiple Price Levels - Create New Price Level
0:07
Create Price Level List
1:49
Associating Price Level with Customers
4:27
Edit Customer
5:53
Using Price Levels on Sales Forms
7:09
Choose Rate
8:56
Assigning Price Levels To Individual Line Items
10:38
Entering Sales Information, Part 3

22m 33s

Intro
0:00
Managing Overdue Customer Payments - Using the Collections Center
0:21
Collections Center
0:39
Create Invoice Letters
2:00
Prepare an Invoice Letter
3:09
Generating Reminder Statements
7:32
Assess Finance Charges
9:14
Preview Statement
9:42
Processing Sales Orders - Invoices Against Sales Orders
10:28
Open Sales Orders by Item
12:04
Create an Invoice
13:24
Tracking Back Orders
14:36
Create Invoice from Sales Order
16:37
Receiving Items
18:21
Check Item List / Inventory
19:22
Create Sales Order
19:58
V. Payments & Deposits
Receiving Payments & Making Deposits, Part 1

12m 40s

Intro
0:00
Recording Customer Payments - Record a Payment in Full for a Single Job
0:20
Receive Payments
0:40
Undeposited Funds Account
2:25
Entering a Partial Payment
3:42
Assign Payment
6:36
Applying One Payment to Multiple Jobs
8:10
Entering Overpayments
9:44
Leave or Refund Amount
10:51
Issue a Refund
11:28
Receiving Payments & Making Deposits, Part 2

15m 8s

Intro
0:00
Handling Down Payments or Pre-payments
0:07
Apply Credits
4:30
Making Deposits - Selecting Payments to Deposit
5:58
Payments to Deposit
6:26
Make Deposit
8:02
How QuickBooks Handles the Deposit
10:16
Entering & Paying Bills

22m 1s

Intro
0:00
Handling Bills in QuickBooks
0:23
Using QuickBooks for Accounts Payable
2:24
How to Bring up the Accounts Payable Register
3:04
Entering Bills
4:03
Enter New Bill
4:30
Add Vendor to List
6:29
See the Balance
8:48
Paying Bills
11:17
Turning on Reminder List
11:49
How to Pay a Bill
13:34
How to Print the Checks
16:21
How QuickBooks Records Your Bill Payment
17:08
How to See Your Checking Account / Bill Payment Check
18:38
VI. Analyzing Financial Data
Analyzing Financial Data, Part 1

11m 42s

Intro
0:00
Understanding Your Business Using Reports
0:11
When to Use a Quick Report
2:41
Creating Quick Reports
3:05
How to Look at Details for Quick Reports
4:05
Zoom In on a Quick Report
5:19
What You See When You Zoom In On An Item
6:06
Customizing Quick Reports
6:53
How to Customize A Report
7:28
How to Add Transaction Number to QuickReport
7:57
How to Move Columns Around
8:14
How to Change Header
9:42
Analyzing Financial Data: Create & Customize Preset Reports

29m 26s

Intro
0:00
Creating and Customizing Preset Reports
0:35
Company & Financial
0:54
Customers & Receivables
1:04
Sales
1:53
Jobs, Time & Mileage
1:55
Vendors & Payables
2:35
Purchases
2:45
Inventory
3:06
Employees & Payroll
3:22
Banking, Accountant & Taxes, Budgets & Forecasts
3:43
Lists
3:49
Industry Specifics
3:54
Using the Report Center
4:37
Categories of Standard Reports Available
5:15
Creating a Balance Sheet Comparison Report
7:29
Filtering Reports
9:50
Customize Report
10:20
Saving Reports in PDF Format
13:58
Creating and Customizing a Sales Report
15:24
How to Change the Date to a Custom Date
16:30
Using Quickzoom in a Preset Report
17:49
What is Quickzoom?
17:55
How to Zoom
18:19
Widening and Narrowing Reports
19:59
Saving Report Settings and Creating Memorized Report Groups
20:50
What are Memorized Reports and What Are They Used For
21:04
Memorized Reports List
21:43
How to Create A New Memorized Report
22:19
Memorizing Preset Reports
22:48
Saving Report
24:14
Adding Reports to Memorized Report Groups
24:42
Adding Reports
26:49
How to Display Reports
28:50
Analyzing Financial Data: Printing, Exporting, and Quickinsight Graphs

30m 12s

Intro
0:00
Printing Reports
0:17
Preview Before Printing
2:34
Processing Reports in Groups
3:38
How to Run Reports in Groups
4:51
How to Display All Reports in a Group
6:09
Exporting Reports to Microsoft Excel
7:15
Purpose of Why People Export To Excel
7:48
Sending the Report to Excel
9:13
Formatting Options
12:08
Changing Filters
14:30
Choosing and Changing Different Filters
16:30
Creating Quickinsight Graphs
17:51
Creating an Income and Expense Graph
18:41
How to Create the Graph
19:46
How to Read the Pie Chart
20:05
Customizing Graph Data
24:16
Choosing by Customer Instead of Account
24:50
Using Quickzoom with Graphs
25:10
How to Zoom on a Particular Customer
26:15
Customizing How Graphs Display
28:31
How to Change Graph Into 2D
29:03
VII. Inventory
Setting Up Inventory

23m 51s

Intro
0:00
Turn On Inventory Feature
0:43
Enter Products Into Inventory
1:44
Entering Product Through Vendor Menu
2:07
Add New Item
2:43
Reordering Item and Reminders
6:00
Ordering Products/ Creating P.O's
7:02
How to Create Purchase Orders
8:05
Look Up Outstanding Orders
10:46
Getting a Report of Purchase Orders
11:34
Choose and Open Quick Reports
12:48
Receiving Inventory
13:47
Receiving Inventory Without an Invoice
14:13
Reviewing the Inventory List
15:38
Entering a Bill for Inventory
15:59
Entering Bill for Received Items
16:45
Manually Adjusting Inventory
18:31
How to Get to the Adjust Quantity On Hand Page
19:16
Add New Account
20:23
Check and Review Inventory List
22:59
Inventory: Tracking Finished Goods

22m 10s

Intro
0:00
Use Group Items or Create Inventory Assets?
1:57
Tracking Items Through Group Items
3:02
Using Inventory Assembly
3:42
What is a Bill Point?
4:58
Setting a Default Markup
6:16
Adding a Basic Mark Up
6:31
Add a Labor Item to Use in Assemblies
7:26
How to Add New Labor Item in Assembly
7:53
Creating Inventory Assembly Items
9:54
Adding New Assembly Item to Inventory
10:40
Adding in Assembly Labor
14:22
Editing the List
14:53
Building Finished Goods
16:05
Changing Sales Price
16:48
How to Build Assemblies
17:51
Understanding the Effects of Building Items
19:24
Run Report to Generate Item List
20:24
Inventory: Units of Measure

13m 14s

Intro
0:00
Setup Single Unit of Measure
2:12
How to Edit Unit of Measure on an Item
3:18
Setup Multiple Units of Measure
5:32
Setting up Preferences to Multiple Units of Measure Per Item
6:13
How to Edit Multiple Units of Measure on an Item
6:49
Assign Units of Measure to Items
8:44
Edit Items to Assign UN Set
9:01
Assign Measure Sets
9:42
Open Purchase Order and Select Unit of Measure
10:41
Use Units of Measure on Sales Forms
12:47
VIII. Tax
Tracking and Paying Sales Tax

21m 41s

Intro
0:00
Setup Tax Rates & Agencies
0:44
Setting Up Sales Tax Code List
0:55
How to Set up Tax Rate for Example City
3:26
Add New Item to Item List
3:46
Checking and Editing Item Through Vendor Center
7:20
Grouping Single Taxes
7:50
Why Taxes are Grouped
8:05
Creating New Sales Tax Group
8:59
Choose Tax Item to Add Into Group
9:51
Indicate Who and What Gets Taxed
10:45
Add New Customer To Assign Tax To
11:06
Invoicing Customer
13:03
Apply Tax to Sales
14:30
Editing Item and Choosing Tax Rate
14:53
Create a Sales Tax Liability Report
15:26
File Sales Tax Return/ Creating Liability Report
15:40
Use the Sales Tax Register
18:14
How to Read the Sales Tax Payable
18:35
Paying Your Tax Agencies
19:34
How to Pay Sales Tax
19:52
Choosing Which Items to Pay For
20:21
Print Checks
21:06
IX. Payroll & Invoice
Payroll Basics

17m 56s

Intro
0:00
Setup Payroll Items
0:54
Add to Subscription
1:07
Add Employee
2:26
Creating and Adding Personal Information
3:41
Adding Payroll/Compensation Information
4:43
Setup Taxes
6:27
Make a Payroll
8:36
Start a Scheduled Payroll
9:49
How to Edit Each Employee's Payroll Summary
10:30
Custom Items on Payroll
12:12
Print Payroll Checks
14:36
Print Later
14:39
Pay Payroll Liabilities
14:49
Forward Taxes to Authorities
15:06
Generate/Sending Check
15:46
IX. Payroll, & Invoice
Estimating & Progress Invoicing

14m 29s

Intro
0:00
Turning On Estimates and Progress Invoicing
0:21
Create a Job
1:30
Adding new job
2:22
Create an Estimate
5:14
Printing Estimate
7:56
Create Progress Billing
8:22
Invoice Estimate
8:32
Run Report: Job Progress Invoice vs. Estimate
10:46
Update Progress on Job Status
12:25
Edit Job Status
12:34
Make an Estimate Inactive
13:20
X. Time Tracking
Time Tracking

17m 16s

Intro
0:00
Turn on Time Tracking
0:23
Entering Time Data
1:27
How to Enter Time for Labor Per Job
2:45
How to Start Time Ticker While On Job
4:22
Recording Employee Time on a Weekly Timesheet
5:40
Use Weekly Timesheet
6:17
Enter Reimbursement Costs
7:59
Write the Check
8:38
Invoice a Customer for Time and Costs
10:19
Create an Invoice
10:33
Invoice for Time for Labor
11:54
Reports: Time by Job Reports
13:13
Paying Non Employees for Time Worked
14:27
Using Time Sheet & Jobs
16:37
XI. Customizing Forms & Writing QuickBooks Letters
Customizing Forms and Writing QuickBooks Letters

13m 43s

Intro
0:00
Customizing Invoices
0:10
Create Invoice
0:34
Customize Invoice
1:10
Downloading New Layouts
2:50
Create New Design
3:10
Designing Custom Layouts for Forms
5:11
Layout Designer
7:08
Using QuickBooks Letters
9:56
Create an Invoice Letter
10:22
Collection Center
11:49
Email From Collection Center
12:31
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Setting Up Inventory

Lecture Slides are screen-captured images of important points in the lecture. Students can download and print out these lecture slide images to do practice problems as well as take notes while watching the lecture.

  • Intro 0:00
  • Turn On Inventory Feature 0:43
  • Enter Products Into Inventory 1:44
    • Entering Product Through Vendor Menu
    • Add New Item
    • Reordering Item and Reminders
  • Ordering Products/ Creating P.O's 7:02
    • How to Create Purchase Orders
    • Look Up Outstanding Orders
  • Getting a Report of Purchase Orders 11:34
    • Choose and Open Quick Reports
  • Receiving Inventory 13:47
    • Receiving Inventory Without an Invoice
    • Reviewing the Inventory List
  • Entering a Bill for Inventory 15:59
    • Entering Bill for Received Items
  • Manually Adjusting Inventory 18:31
    • How to Get to the Adjust Quantity On Hand Page
    • Add New Account
    • Check and Review Inventory List

Transcription: Setting Up Inventory

Welcome back to Educator.com.0000

This is QuickBooks lesson: setting up inventory.0002

The first thing we need to talk about is how inventory works with some businesses.0005

If you are in a business that is just a service-oriented business, you may not have to worry about this particular lesson.0010

But, if you are utilizing inventory and reselling that inventory, then, this is a great lesson for you.0017

And QuickBooks is designed to help you manage your inventory and track the number of inventory that you have.0024

So, you do not lose track of what you have on hand.0030

A lot of times in business, if we do not have a good tracking system, it is really difficult to manage our cost.0034

So, setting up inventory, the first thing we need to do is turn on the inventory feature in QuickBooks.0040

And to do this, we need to go to our Preferences page.0047

To get to our Preferences in QuickBooks, well, QuickBooks is open, go to our Edit menu bar and select Preferences.0051

Under that, we want to look at our Items and Inventory and select the Company Preferences tab.0061

We want to make sure that the very first item under Purchase Orders and Inventory, Inventory and Purchase Orders are active,0070

make sure that, that box is checked, and then, we can go ahead and proceed and begin tracking our inventories.0078

Once that is selected, we can then, go ahead and click on OK.0086

And we are ready to begin entering inventory and products into our system and be able to start tracking those inventory numbers.0090

So, the next section that we are going to talk about now is how to enter products into our inventory.0101

A lot of times, we might buy products from a wholesaler and then, turn around and resell it for a profit.0109

The first thing we might want to do is make sure that we can enter in the products that we are selling properly.0116

To enter in the product into inventory, we want to go to our Vendors menu.0122

Under the Vendors menu, we will see down here under Inventory Activities or actually Item List, the very bottom, we want to pull up our Item List.0129

The other way that we can pull up our Item List is by going to Lists and choosing our Item List.0139

But, through this process, we will go Vendors and at the very bottom, choose our Item List.0144

Here, it gives us an entire listing of every product and service that we have to offer in which we are in business for.0152

So, in order to add a new item, let's suppose that we are going to add a new item, under the Activities or actually Item menu0160

button at the very bottom left of our Item List menu or window, we will see the Item button at the very bottom left. We will click on that and select New.0171

If you are familiar with adding things to Items, Lists or the Chart of Accounts, you can always do a Ctrl+N to get to the new Item List.0182

The item that we are going to add is going to be a new inventory part, and it will be an inventory part, so we will select Inventory Part.0193

In the Item Name/Number Field, we are going to type in Cab for short for Cabinet. We will call it 2015.0209

That is the style number. We are going to press tab, and we are going to select it to Subitem of Cabinets.0220

We will select our Cabinets as a subitem.0231

I typed it in. You can always pull the dropdown menu and select Cabinets.0234

The next thing that we want to do is we want to go into the Description on Purchased Transactions,0242

very middle of the page where it says Description on Purchased Transactions, and we are going to type in Kitchen Cabinet no. 2015.0254

We hit tab. Notice that it copies the same information into the Sales Information.0269

From the Purchase Information, it copies it over as the Description of Sales Transactions, as well, so we have that taken care of.0275

Under the Cost section, we are going to say it is $169, and the preferred vendor, we are going to choose Thomas Kitchen and Bath.0283

That is where we are purchasing these cabinets from. It is from Thomas Kitchen and Bath.0298

In the Sales Price field, we want to sell it to our customers for $225- a bit of a mark-up there.0304

We are going to leave the tax code as is if there is a tax there, and at this point, we will go ahead and choose the income account for this.0314

And it is going to be a construction type of income, and it will be in Materials.0327

So, under our Construction Income, we have a subaccount called Material Income, and we will choose that.0332

We will go ahead and hit tab out of that. It will bring us into the Asset Account.0340

And under the Asset Account field, we will just go ahead and make sure that it is an inventory asset, and we will leave it there because that is good.0346

We want to know that when we are down to a certain number of cabinets on this, we want to be able to reorder these.0355

So, it gives us a reorder point. QuickBooks will remind us when we get down to a certain supply number, that it is time to reorder.0363

We will choose that when we have 15 cabinets on hand that it is time to reorder this item.0372

On hand, let's say we already have 20 of those. We will hit tab.0378

And it automatically calculates the $169 cost times the 20 to be a value of $3380 that we have on hand.0384

And then, we could choose the date as of today's date, which is fine.0395

We will go ahead and click on OK to close the New Item window.0400

And we will notice that we now have the cabinet 2015 Kitchen Cabinet, item no. 2015 now added under our Cabinets there.0407

The next thing we want to talk about when we are dealing with inventory is when we get down to an order level,0422

we can go ahead and then, purchase new items.0430

QuickBooks will help us and can help you manage the ordering process, so we can track that, and we call that Purchase Orders.0434

So, a lot of times, we will need to order those products, so we can keep our inventory stocked, and you can actually buy inventory directly.0444

Instead of using the Purchase Order system, you can actually buy it direct.0454

by cutting the check and putting it right into Inventory and bypassing the Purchase Order system.0458

But, by using the Purchase Order system, you can keep track of what pending orders you have,0465

what pending items you have actually already have and you are waiting for to come in to replenish your inventory.0471

So, it is really a nice helpful tool that QuickBooks has is utilizing Purchase Orders.0478

The first thing we want to do is look at the Purchase Orders.0484

And QuickBooks will actually automatically generate a Purchase Order number for you to use if you need to for your vendors.0488

So, in using the Purchase Orders, we are going to show you how to create a purchase order.0495

From the Vendors menu, we are going to choose Create purchase orders.0503

So, this is now that we want to go ahead and order some items that we are low on.0513

We want to replenish our stocks, so we can continue selling that product.0517

We are going to open up a new purchase order, and in the Vendor field, we are going to type in Perry Windows And Doors and click on tab.0522

It will go ahead and fill out the Vendor Information, and then, we can go right into the body of the order number.0532

It, kind of, looks like an invoice set up in the same way.0539

In the Item column, we can go ahead and type in Frames or Exterior Frames, so I am going to choose under here Exterior.0543

If you do not have that in your sample, if you type it in, you can actually add that Exterior Frame into your sample.0553

But, I am going to type in Exterior Frame, actually, Frame and choose the Exterior Frame that is in the sample setup.0563

Again, if you do not have it, you can choose something else to order, but in this sample with my company file, we have an exterior frame.0573

You can go ahead and order cabinets or something else that will suit you.0581

Under the Description, we will just go ahead, and we could type in Exterior Frames, or maybe the item has already prefilled that for you.0584

In my case, mine did not put in a description for that, but we want to go ahead and order, say, ten of those items.0595

When we hit tab, it will automatically calculate how much we need to pay our vendor.0604

Under a Vendor Message, we could type something special if we would like. We can say Please rush ship this order.0613

And that, kind of, indicates to our vendor that we would like this rushed ship.0628

When we are done with filling out the items that we are ordering from that particular vendor, we can go ahead and click Save and close.0634

Now, what will happen is that QuickBooks will add an account under our Chart of Accounts called Purchase Orders.0643

And with that, under the Chart of Account with Purchase Orders,0653

we should be able to then look at and see the amount of orders that we have outstanding.0657

And it is a non-posting account that QuickBooks uses, and it will not affect your balance sheet or income statement, and it is a purchase order account.0665

It is also used to produce quick reports that will show us the current purchase orders that we are ordering already and that have not shown up yet.0674

So, we are having pending orders or pending items that we are waiting for, that we have ordered from our vendors and we have not paid for as of yet.0683

Now, we want to go ahead and do create a report of purchase orders and see what outstanding items we actually have.0694

When we look at that, we can go to our Lists menu, and from the Lists menu choose our Chart of Accounts.0705

And then, we should be able to look down here and find our Purchase Orders.0715

Since we just created a purchase order, we should be able to find a purchase order here.0725

It is down here at the very bottom. I found mine under the 9000.0754

It is called Purchase Orders. If I highlight Purchase Orders down at the bottom, then, I can run a quick report.0758

In order to run a quick report there, I will just go ahead and select the bottom of the Chart of Accounts window, Reports and choose Quick Report.0765

And then, we will not open up a quick report for that particular chart of account.0776

And it will list all of the purchase orders that I have outstanding in the report.0782

And now, I can see what I am waiting for, and there is Custom Kitchens and etc.0788

So, we can look down, or I can scroll down and look at my latest one from Perry Windows and see there is my ten items that I am looking for at $200 each.0797

So, I can see those Exterior Frames that I have ordered from Perry Windows.0810

I can close the window by clicking on the red X now that I have my quick report done, and I am happy to see what I am looking for.0819

Once we receive, after we make our purchase order, and the vendor sends us our product, we could then, receive that product.0828

A lot of times, we will get the product first, and maybe the invoice is to follow.0837

So, we are going to go ahead and receive the inventory without an invoice.0841

I am going to close down my windows. A quick way to do that is by clicking Window and Close all.0846

And so, once we get that product in, we are going to receive that product into our inventory.0851

From our Vendors menu, we are going to choose Receive items because we do not have the invoice yet, but we have the product in hand.0856

The first thing that I want to do is I am going to type in Perry Window for the Vendor that we are receiving product from.0873

And it gives us a little message saying Open purchase orders, that there is open purchase orders that exists for this vendor.0882

Do you want to receive against one of the purchase orders, and yes we do, so we are going to say Yes.0888

At that, we are going to look at the order number that we just placed. This is purchase order no. 40.0896

That is the one we just did that had the ten items at $200. I am going to click OK on that once I select it.0903

It will pull in that purchase order information, and it gives me those frames. It gives me those ten items that we collected there or actually ordered.0913

It says $200 as the cost.0925

So, once we receive it in, it is now going add those to our Inventory. Once I hit Save and close, it will not add it to our Inventory.0928

If we want to look at that, we can click on Lists and go to our Item List and go down to our Exterior Frames.0936

And we will notice that our Inventory has increased.0946

We could Save and close on all that, and that is how we receive inventory.0953

But, now, once we receive our inventory, when we have increased the number of items that we have ready to sell, we receive the bill.0958

And now, we have got to pay for it.0966

So, we are going to go ahead and enter that billing against that purchase order or against the item received.0967

What we want to do is now that we have the bill, we want to receive that bill for that particular inventory.0975

In order to do that and attach that bill to that receipt, we are going to go from the Vendors menu, and we will say Enter bill for received items.0982

So, of course, we can receive the items and enter the bill at the same time.0993

But, this case, we received the items and then, received the bill later, so we will say Enter the bill for received items.0998

In the Vendor field, we will pull down our Perry, so I am going to type in Perry Windows and Doors.1008

It is going to pull up a bill here, and we are going to look at that, and we will choose the very first one, which should be that one that we had.1014

It is Bill to follow, and we will say OK, and it should pull up the ten items. That is not the one I wanted, so I am going to clear this particular one.1028

I will not revert it. Get out of there.1040

I will do it again. It has got to be the second one, so under Enter bill for received items, when I do Perry, it is going to choose the second one.1044

And that should be the one that is our $200. There is the one we just entered for $200.1053

So, I chose the proper purchase order, and if I had a memo in there, I would have identified it a little bit better.1059

Right here, we chose the right one that is $200 that we are going to owe to our vendor.1068

It pulls it in. There is the bill for $200 that we owe them.1074

We will click Save and close, and it says You have changed transaction. Do you want to record your changes? Yes, we do.1078

And now, what happens is it goes ahead, and it creates an accounts payable, a credit, that we owe $200 to Perry.1086

And it also creates an asset of $200 to our Asset Inventory, and that is what QuickBooks is doing in behind once we can get that taken care off.1093

Now, the next section we want to do is we are going to now manually adjust inventory.1107

Sometimes, at the end of the month, we might have lost, maybe damaged goods of some sort, maybe a cabinet was broken at some sort up.1114

So, we need to adjust our inventory at the end of the period. This happens unfortunately, too often in some businesses.1124

And we want to minimize that, and that is why we utilize the inventory tracking1131

in QuickBooks to help minimize loss and damage of our items or goods for sale.1135

So, in order to manually adjust our inventory after we do a proper count at the end of the period,1143

we want to do a manual count, and when we see that our QuickBooks information and inventory is slightly off, we want to adjust that.1149

I am going to close all my windows here, and I am going to open up my Home screen by clicking on the upper left icon bar and choose Home.1158

And here is my Home screen here that shows me my little flow chart, but notice in the upper right of my Home screen is Inventory Activities.1168

The first thing I want to do is click on the right arrow there and look at the Adjust quantity value on hand.1180

So, we are going to choose that activity of the Adjust quantity and value on hand.1188

The first thing we want to do is leave it on today's date.1196

In this case, it says 12-15-2006. It gives us the adjustment account that we can put in Miscellaneous.1200

But, in this case, we are actually going to type in Inventory adjustment.1208

I want to hit tab, and it says Hey, you want to set this up? Yes, I do.1220

I am going to set up this account because it does not exist yet. This, I am going to assign it a number, Inventory Adjustment.1223

What is the cost? No, 6600-01, and that should be sufficient to set up this particular account.1239

And it gives us the Add new account for Chart of Account. Chart of Account, new, and I am going to put an assignment of a number.1252

If you are not utilizing Chart of Account Number, you do not need to worry about that.1258

But, I put in a number. Hopefully, it is not duplicated, and I have chosen 6600-01.1261

I will make sure that the name is Inventory Adjustment, and the account type is going to be Expense, so it is an Expense account.1269

So, I will choose Expense. Make sure that it is typed in properly.1294

It is an Inventory adjustment account, and I am going to say Save and close.1298

And now, we have a new item, Adjustment account called Inventory adjustment.1304

Now, I am going to go ahead and in the Quantity, under the Item, I want to choose Interior Doors.1310

It is a wooden door, but I want to choose an interior door that we are going to adjust after we checked it out1321

that we noticed that we have a different value on hand, and we have two left.1329

So, in the Quantity different, I am going to say I have got -2, so it is going to put in a new quantity of 45.1336

I could always put in the new quantity of 45, and it would calculate that we have -2 either one way or the other.1345

But, we have only 45 of those interior wooden doors. I hit tab, and it looks at the value adjustment.1352

It is going to create an adjustment to the value of our inventory assets of $139.79. It is going to adjust things for.1360

So, once I have got that done, I have my new quantity amount. I click Save and close.1372

And if I can check it, I can go ahead and say Lists and look at my Item Lists and go down to the wooden doors.1377

And under the wooden doors here - oops, where did they go - Interior.1387

I should have 45 on hand instead of 47, so that has been taken care of properly.1393

That is how we manually adjust the inventory, and that is how we set up our inventory for QuickBooks.1402

Hopefully, this lesson has given you a little bit of a start so that you can begin tracking your inventory on a regular basis.1407

I encourage you to do a regular manual inventory counts and reconcile them to your1416

QuickBooks as often as you can at least quarterly if not monthly preferably.1422

Thanks again for visiting Educator.com. We will see you next time.1427

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