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05/24/2012 at 04:51PM PDT
Important Announcement! A planned system-wide upgrade will take place over the Memorial Day Weekend in the US (From Thurs, May 24, 2012 at 6 pm PDT thru Tues, May 29, 2012 at 5 am PDT). This includes QuickBooks, QuickBooks Payroll, Point of Sale, & Salesforce.com. This is only for US based products. This does not affect QuickBooks Online customers! During this time, you can shop, but can’t place orders online, activate products or update account info. We apologize for the inconvenience & thank you for patience while we improve our infrastructure to better serve you. International versions are unaffected. For more info, see our community discussion.
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PHinCA
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09/07/10 2:27pm PDT
Viewed by asker 09/09/10 8:08pm PDT

Should a manufacturer's rep with no physical inventory use inventory items?

I have a client who is a manufacturer's rep.  They do not carry a physical inventory. Their supplier's ship to their customers. However, they want to track details of all part numbers and use inventory items (which is really his supplier's inventory) to track all parts. 

They use POs and send invoices and use the Mfg and Wholesale Edition.  It seems their balance sheet will carry an Inventory they do not really own.  Is there a better way to do this?

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Michelle Long CPA
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Michelle Long CPA
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09/07/10 4:52pm PDT

Use 2 sided, non inventory parts (check the box above the description that says 'this item is used for a specific customer or job or something similar).  This allows you to use the item on the POs and bills (records the expense) and invoices too ( records the income)without hitting the balance sheet.   You can see item profitability reports too.

Please post additional questions or else click SOLVED. Thanks!

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PHinCA
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09/07/10 5:29pm PDT

This is surprising because a CPA set them up and I thought I was missing something.  The two sided non inventory part will work and I don't think they will lose any functionality that they have now.  Do I need to fix this by adding new items for non inventory parts and doing an inventory adjustment to fix the Balance Sheet?  Anything else like deleting any other inventory items?

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Michelle Long CPA
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09/07/10 5:46pm PDT

Not all CPAs know much about QuickBooks (I don't know much about S corp taxes!).   You probably should discuss it with the CPA before you make changes though.

Yes, you would need to create new 2 sided items, adjust inventory and make the old items inactive.  Backup first! 

Please post additional questions or else click SOLVED. Thanks!

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09/07/10 5:58pm PDT

I resent that remark about not all CPAs know much about Quickbooks.  Well, not really, since I'm one of those CPAs that doesn't know much about Quickbooks.  I know how to print reports but that is pretty much the extent of my use of Quickbooks.  So Michelle is correct that it shouldn't be surprising if the CPA isn't a Quickbooks guru.

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Michelle Long CPA
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09/07/10 6:08pm PDT
The solution

I don't know much about taxes and I'm definitely not a tax guru!   That is why I exchange referrals with CPAs who are tax gurus but don't know much about QuickBooks.  We both can do what we know and like! 

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09/07/10 8:16pm PDT

Thank you Michelle, for once again, coming to my rescue!

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You're welcome -- glad to help!

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