In this QuickBooks Online Inventory training class, you will receive an overview of the QuickBooks online inventory playlist and what to expect in this free, mini course. The 2 videos that follow this one separately shows 2 different ways to get a new blank, empty QuickBooks online account for free. You could use the free, accountant’s edition or sign up for the free-for-30-days plus version of QuickBooks Online. Then you can follow along step-by-step and master every possible transaction, situation or idea that relates to using QuickBooks Online for inventory management.

In this QuickBooks Online Inventory training class, you will learn how to set up your QuickBooks online account for this QuickBooks Online Inventory Course. You will follow entering customers, vendors, setting up reports and changing the account settings for this particular example company.

In this QuickBooks Online Inventory training class, you will the reason for, as well as how to use, non-inventory parts. These are items that go on the same products and services list in QuickBooks online that your actual merchandise inventory would go on. The only difference from a record keeping and bookkeeping perspective is that these “2 sided items” do not have their quantity tracked in QuickBooks online. Mostly everything else about 2 sided items and non-inventory parts are the same when recording sales and purchases for these goods. Usually, these are things that you would use as part of a job like “supplies” or something that you use to enhance the service that you may or may not bill your client for. They have both an “income” type of account to record the sales price and an “expense” type of account to record the cost of purchases of these items. When putting them on a purchase document, like a bill or a check, the purchase cost you set up will appear. However, when putting them on a sales document like an invoice or sales receipt, the sales price you set up for that item in the items list will appear on the document. You can input the quantity when buying and selling just to help calculate the money amount of the transaction, but the accumulated running quantity on hand will not be saved in any reports.

In this QuickBooks Online Inventory learning session, you will see how to “activate” inventory parts in QuickBooks Online. This means turning on the inventory track quantities in the account settings window or the company settings window, depending on what subscription level of Q.B.O. you have. Once you change this setting, QuickBooks Online will add inventory features and inventory reports to your existing QuickBooks online account. The reports will show the tracked merchandise inventory quantity of each purchase, sale and return of goods as well as the running quantity on hand. Activating this option will allow QuickBooks Online to add inventory parts to this products and services list and add more options to the New transaction plus sign menu specifically for inventory.

In this QuickBooks Online Inventory learning session, you will learn how to record purchasing merchandise for cash or any other immediate payment method for buying your goods for resale. When you pay to purchase new merchandise, your bank account decreases, and the inventory asset account increases by the purchase cost of the new goods you just bought. If you wrote a check, you could use the checks window or if you paid online, you could us ether expense window from the QuickBooks online interface. The quantity of the items purchased will increase and you will see that increase on the inventory valuation detail. You will see the quantity on hand increase after each purchase.

In this QuickBooks Online Inventory learning session, you will learn how to record purchasing merchandise “on account”. This means that we buy the merchandise and pay after the goods are received. When you pay to purchase new merchandise when the customer pays later, the account that records the future payment is accounts payable. This account is a current liability and it will increase when you purchase merchandise inventory from a vendor whom you will pay after the goods are received. Just like any other purchase of inventory, the inventory asset account increases by the purchase cost of the new goods you just bought. The quantity on hand of the inventory item still increase after each purchase and you will see this change on the inventory valuation detail report as soon as you enter the vendor’s bill for the merchandise inventory that was shipped to you from the vendor.

There are 4 accounts that you must debit and credit to record selling merchandise when you use the perpetual inventory system. You can see your gross profit from the T accounts You will quickly and easily understand the most important accounting ideas from this, perfect, easy to understand playlist. Users of Accounting Software should be able to make journal entries themselves. This course will give you the ability to do that. You will properly learn the appropriate accounting vocabulary. Then, you will see how our accounting system started with the fundamental accounting equation. This playlist will finally get a clear explanation for the ideas of debits and credits. We will practice them together before learning about the general journal and the accounting cycle. For merchandise companies, I provided an explanation of Inventory Valuation, Inventory Adjustment and Cost Of Goods Sold. You will enjoy the presentation about Account Adjustments, Closing Entries and distributing partnership income. I even included the calculation of early pay “cash” discounts as well as interest and mortgage calculations. The teaching and learning methods of accounting have been extremely successful regarding student passing rate and job placement.

In this QuickBooks Online Inventory learning session, you will learn how to record sales of your merchandise inventory when the customer pays cash or gives some kind of immediate payment. If the customer pays up front, the correct transaction document to make for the sale of your goods is a sales receipt. When you list your products on the sales receipt, QuickBooks online will credit the sales price to the sales income account and calculate the cost of goods sold for that sale based on your purchase cost of the goods that you sold and listed on the sales receipt. The cost of goods sold account will increase by the purchase cost of the goods on the receipt that were part of the merchandise sale.

In this learn QuickBooks Online Inventory training class, you will learn how to record sales of your merchandise inventory when the customer pays for the merchandise you sell after the day of the sale. This could be called a “credit sale” or a “sale on account”. When this happens, the proper transaction document is an invoice. Creating an invoice for a client for selling your goods will both increase the customer’s balance a well as decrease the quantity on hand for the item that you are selling. The income from the sale will be recorded as the sales price increasing the sales income account. The cost of the sale for what you originally paid for the goods will be recorded in to the cost of goods sold account as the original purchase cost is removed from the inventory asset account.

In this learn QuickBooks Online Inventory instructional class, you will learn how to record returns of merchandise from customers from cash sales that had sales receipts. The way to record this is to make a “refund receipt”. This is a document that records the return of merchandise and the giving of a refund to a customer who paid cash for the items that they purchased. It is very simple to make a refund receipt; it is exactly the same as making a sales receipt, but it simply has the opposite effect in QuickBooks online records and data. You MUST put the exact same inventory items on the refund receipt as were on the original sales receipt. This way: the quantity of the goods will increase for what was returned, the sales income for the products returned will decrease by the original sales price and the cost of goods sold will also decrease by the purchase cost of the goods returned. Of course, your cash will also decrease for what you refund ack to the client.

In this learn QuickBooks Online Inventory training lesson, you will learn how to record returns of merchandise from customers who pay by credit where the original sale was recorded on a sales invoice. The proper accounting procedure would be to make a credit memo for the goods that were returned from the customer. This credit memo has the exact opposite effect of the invoice. That’s what you need to record, and you must put the retuned items on the credit memo exactly the way you did in the original invoice. This will reduce the customer’s balance to the appropriate amount. The credit memo must then be applied to the original invoice in the sale. The way to do that is to us the receive payments window to record a “zero-dollar payment”. This will be a separate transaction with an amount of zero. What this does do, however, is “apply” the credit memo to the invoice. This extra step allows you to see the remaining balances of specific invoices after the credit has been applied.

In this learn QuickBooks Online Inventory video tutorial, you will learn how to record returns of merchandise from your company to the vendor whom you purchased your products from in the first place. Any prior purchase made “on account”, by recording a vendor bill, requires a “vendor credit” be created to reverse the effects of the original purchase. A vendor credit decreases the vendor’s balance and also decreases the quantity on and off merchandise. Your count for your goods available goes down because you are giving back merchandise to the vendor so therefore you have less on hand. The vendor credit must be applied to the original vendor’s bill that you entered when you recorded the purchase. The effect of the credit will be the exact opposite of what the effect of the bill was if you assume that you put the exact same items on the credit as was on the bill. The vendor credit must then be “applied” to the original bill by making a “zero-dollar” payment. This is because the “pay bills” window is the only window that allows you to apply vendor credits to vendor bills. Just like you can check the quantity on hand via the “inventory valuation detail” report, you can check the vendor’s bills you owe and see if the credit was applied correctly by looking at the “unpaid bills detail” report.

In this learn QuickBooks Online Inventory training tutorial, you will learn how to record returns of merchandise to a vendor where the original purchase was made for cash. These cash purchases have a special purchase returns procedure to record. You still need to make a vendor credit for that return. You will see that when you make the deposit in the deposits window for the vendor refund check. This purchase return refund amount will show up as a positive amount in the vendor’s balance. The credit memo you made is like a refund receipt to the vendor. The negative amount of the credit memo and the positive amount from the refund that you deposited will “zero out” the vendor’s balance if you use the pay bills window to do this. You need to make a “zero-dollar” payment on the day of the return and then check the unpaid bills report to be sure that the deposit check from the purchase return was applied properly to the vendor’s credit. Of course, the balance and quantity on hand of your inventory will go down for what was given back to the vendor.

In this learn QuickBooks Online Inventory video class, you will learn how to record and manage purchase orders to vendors. Purchase orders are NOT transactions. They simply request the merchandise from the vendor. You must activate purchase orders in the account settings or company settings window. After you activate purchase orders, you will have purchase order related reports and the ability to record purchase orders. These purchase order documents are not transactions. They will not effect your financial balances anywhere until the order is received. The only reports that they will show up on are: open purchase order detail”, open purchase order list and transaction list by vendor. They will not appear in any other report. When the order is received, the quantity of goods on hand increases and the purchase order will disappear from the open purchase order report. If the order is only partially filled because the delivery from the vendor only included some of the requested product, then the order will remain on the open purchase order report. These “back order” items will be received later and close the purchase order to remove it from the report.

In this learn QuickBooks Online Inventory course section, you will learn how to adjust inventory quantity on hand for special, rare or unusual situations. Normally, the quantity on hand of your merchandise will only change when you have a: sale, purchase or return. However, sometimes the physical count of inventory will change for things like: theft, casualty loss, spoilage, obsolescence or stupidity. You could even gain goods that you can make available for sale If you find or even if someone donates to you the product you sell. When you adjust inventory, the quantity will change in the inventory valuation detail report. The inventory asset account will change and the “balancing entry” for the other account that would change when adjusting inventory is called an “adjustment account”. It is usually an “other income” or “other expense” type of an account. This mean it will affect your net income but not your normal operating net income.

In this learn QuickBooks Online Inventory training tutorial, you will learn how deal with prepaid inventory. Any time you purchase merchandise and pay more than just a few days in advance before receiving the goods. If you pay very early, the account that represents your pre-paid inventory should be separate from the normal inventory asset account. It is also a current asset. However, since NO accounting program has a feature that tracks specifically, pre-paid inventory, you must do the “work around” shown in this video in order to track the prepaid inventory details in Quickbooks Online. This involves making an account for prepaid inventory. To make this work, the prepaid account must be a “bank” type of account. This is because this ‘work around” will use the “checks window” or the “expenses window to transfer the inventory from prepaid to inventory asset upon receiving the goods. The quantity on hand of your products should NOT increase until the items are physically received and available for sale to the customer. Since the inventory asset account is matched with the “inventory valuation detail” report for quantities of each item of goods, the prepaid inventory account has no separate report that shows quantities and individual item values. You MUST use the Memo field of the account to record item details. This is the closest any accounting program can come to managing details of purchased merchandise before receiving the items. For refunds, use the deposit window exactly the way you used the checks window when recording prepaid inventory transactions. This very special method that I invented for my clients in the late 1990’s will work best. I hope it’s ok, therefore, to call it the Mark Smolen method of prepaid inventory.

In this learn QuickBooks Online Inventory training tutorial, you will learn how QuickBooks Online manages changing purchase costs for identical items that you buy and sell. If the same item is purchased by you more than once with the same purchase cost, then QuickBooks online needs to calculate a cost-per-unit in order to determine the cost of goods sold when the items are eventually sold. Of the 3 common inventory valuation methods, QuickBooks DESKTOP (not this) uses the “weighted average” method. However, our QuickBooks Online uses the “First In First Out” method (F.I.F.O) (FIFO) method of inventory valuation and ultimately calculating the cost of the inventory on hand for the “inventory asset” account as well as finding the goods sold for each sale.