The process of tracking inventory is done when you purchase and sell products.

Inventory is added with purchasing through a check, expense, or a bill.

When purchasing:

  1. Choose the Plus sign (+) > Bill.
  2. Fill out the top part of the bill as you normally would, then click the option Item details.
    Note: This setting is "sticky", so next time you access the screen the option will already be open.
  3. Select the appropriate product, quantity, rate, and any other applicable information.
  4. Click Save.

After the check, expense or bill is saved, you'll see the increase in quantity reflected in the product's information.

When selling:

Record the sale of inventory items on an invoice or a sales receipt, including quantity sold.  After the invoice or sales receipt is saved, you'll see the decrease in quantity reflected in the product's information.

How to Adjust Quantity on Hand Manually:

Sometimes you may need to adjust Inventory quantities without recording a sale or purchase transaction.

  1. Choose the Plus Icon > Inventory Quantity Adjustments.
  2. Enter the Adjustment Date
  3. Enter Inventory Adjustment Account
  4. Optional, (if you have Location turned on) Add Location
  5. Select Product
    1. Description and current quantity on hand will pre-populate
  6. Optional, enter new Description
  7. Enter New QTY
  8. Optional, (if you have Class turned on) Add Class
  9. Optional, add additional products
  10. Optional, enter Memo
  11. Click Save.

When you save the inventory adjustment, QuickBooks Online automatically records appropriate adjustments to your stock Asset and Cost of Goods Sold (under stock Shrinkage) accounts. 

An inventory adjustment can be deleted or edited as well if needed.

  1. Choose the Find +
  2. Select Advanced search
  3. From the All Transactions dropdown> Select Inventory Quantity Adjustment
  4. Search
  5. Once Adjustment is found, Edit or Delete 

For additional information on Inventory Cost Accounting and Cost of Good Sold (COGS) see Inventory Links and Resources.