Video: Inventory, Part 1…Hannah sets up her shop

Part 1: Setting Up | Part 2: Purchasing inventory | Part 3: Adjusting inventory

Watch how Hannah of Hannah’s Illusion Supplies uses QuickBooks to set up her inventory of top hats, wands, and rabbits.

Video script:

Meet my friend Hannah who has decided to be her own boss and open a new store, Illusion Supplies. She’ll be selling tools of the trade to magicians in North America and around the world.

Hannah creates her company file – using  QuickBooks for Mac of course – and she turns on Inventory tracking through her Preferences.

She also uses the Vendor Center to create vendors for three suppliers she plans to use for her inventory:

  • McCormick’s Wand Supply
  • Wright Top Hats
  • Carol’s Rabbit Hutch

She creates inventory items for wands, top hats, and rabbits. When creates the items, she chooses “Inventory Part” as item type because she plans to resell these items. QuickBooks will track how many inventory items remain in stock after a sale, how many items she has on order, her cost of goods sold, and the value of her inventory.

When she creates her items, she has the option to select one of her vendors as a preferred vendor for that item.

Hannah also makes sure she has these accounts in her Chart of Accounts:

  • Inventory Asset, which is an Other Current Asset account, to track the current value of her inventory. This is created automatically when Hannah creates an inventory part.
  • Sales, an Income account, to track the income from the sale of her inventory items. If you sell both items and services, you’ll may want to use a Sales account for each depending on what works best for your business.
  • Because she’s created an inventory item, QuickBooks automatically creates a Cost of Goods Sold account to track the costs to Hannah of the items she’s selling.

Now Hannah’s Illusion Supplies is set to acquire inventory. Stay tuned for the next video when Hannah orders and receives inventory in prep for the store’s Grand Opening.

About Ben Hess

Ben Hess uses digital media to tell compelling stories - video, photos, motion graphics, and even stick figure storyboards ... whatever it takes. He's also a QuickBooks user and is thrilled to be one of the first Little Square inhabitants. Ben grew up in Atlanta and is a recovering football and soccer player turned passionate fan (Falcons and Earthquakes!). He tries to cycle when there's time. But there never is. See all of Ben's videos

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