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11/29/11 1:43pm PST
Viewed by asker 12/04/11 1:10am PST

inventory....HAY? what kind of inventory title?

QuickBooks Canada : Pro 2012

I'm trying to enter inventory for the first time. We are farmers, and we sell hay that we produce on the farm...what kind of inventory is that?

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11/29/11 8:59pm PST

What do you mean, "what kind"?  Why not call it Hay?

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When I go to enter the hay into the items, I have choice of Service/inventory part/ OR non-inventory part....looking at the descriptions below, non of them really apply to the product I sell.  I don't purchase hay to sell to a customer later.  It is a product that is grown on the farm then sold.  The non-inventory description suits to some degree (items you sell without ever buying) BUT you can't track inventory.  Do I just ignore the definitions and use "inventory part".  Or will it mess things up if I don't have purchasing information for my hay?

 

Inventory parts are items that you buy and then stock for a while before selling. QuickBooks tracks the quantity on hand, the current inventory value, and the average cost of your inventory items. It also tracks some accounting information like "cost of goods sold" for inventory items that you have sold.

Non-inventory parts are items that you purchase (usually on behalf of a specific customer) and then immediately sell or install, or items that you sell without ever buying. For non-inventory parts, QuickBooks will only track how much you have spent or taken in. Some people use non-inventory parts even for items that they stock because they prefer a simpler approach—even though it gives them less information.

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Although the definition you quoted does not say so, Inventory Part Items are also appropriate for products that are manufactured or assembled from other components.  Either an Inventory Part or a Non-Inventory Part might work for your hay. 

QB is definitely used by some farmers but it is a "non-typical" application for QB and accordingly I suggest you consider consulting your own professional accountant and/or a QB ProAdvisor with farm accounting experience for guidance in setting up and using the program in a manner best suited to your specific requirements.

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