Part 1: Setting Up | Part 2: Purchasing inventory | Part 3: Adjusting inventory
In Part 1 and Part 2 of this series, Hannah has set up QuickBooks to track inventory and purchased her inventory from her vendors. In Part 3, Hannah starts to sell her inventory and runs into the problem of damaged stock. See how she handles this.
Video script
After getting operationally prepared to order & receive inventory, Hannah has a Grand Opening for Hannah’s Illusion Supplies.
Following a booming first week of almost 20 orders, Hannah creates invoices to include with each shipment. The invoices include inventory items she’s created. QuickBooks automatically reduces her inventory by the number of items she includes on the invoice.
Only a month after her grand opening, a pipe breaks in Hannah’s store room and a dozen magic wands are damaged. Now she’ll have to make adjustments to her inventory manually.
With the sprinkler stopped and mess cleaned up, Hannah uses Vendors > Inventory Activities > Adjust Quantity/Value by Hand and reduces the number of magic wands she has available by 12. Note that you can also adjust value here, too. When you make an adjustment account, work with your accountant about how you want to set that up.
The following week, Hannah notices that 3 of the top hats in a recent shipment are crushed, and she returns these to Wright’s Top Hats.
She chooses Vendors > Enter Bills again, but this time selects Credit at the top and selects Wright’s as the vendor and top hats as the items. QuickBooks decreases the quantity of Top Hats on hand and creates a credit that she can apply to her next bill from Wright’s.
Hannah keeps tabs on her inventory through the Inventory reports such as Inventory Stock Status by Item. She can also print a Physical Inventory worksheet that she can use to take inventory manually.
We hope you’ve enjoyed the Inventory series from QuickBooks for Mac and meeting Hannah. For more videos and articles, visit quickbooks.com/littlesquare.
About Ben Hess
