What role does QuickBooks Advanced Inventory play?

 Introduction to QuickBooks Advanced Inventory

The use of accounting software like QuickBooks is widespread among businesses of all sizes. QuickBooks' Advanced Inventory module, which enables companies to manage their inventory more effectively, is one of its features. We will go through the definition of QuickBooks Advanced Inventory, its features, and how to set it up in this blog article.

What is QuickBooks Advanced Inventory?

The QuickBooks Advanced Inventory is an add-on module that provides advanced inventory management capabilities to QuickBooks. It allows businesses to track inventory across multiple locations, set reorder points, and manage inventory using barcode scanning. It also integrates with popular shipping carriers and provides real-time updates on inventory levels.

Features of QuickBooks Advanced Inventory

1. Multi- Inventory monitoring by location: Companies may keep track of their stock at several locations with QuickBooks Advanced Inventory. Businesses with several retail outlets or warehouses will find this capability to be extremely helpful.

2. Barcode scanning: QuickBooks Advanced Inventory supports barcode scanning, which makes inventory management faster and more accurate. It allows businesses to scan items as they arrive or leave, reducing the chances of errors in manual data entry.

3. Reorder points: QuickBooks Advanced Inventory lets businesses set reorder points for their products. This means that when inventory levels drop below a certain threshold, the software automatically generates purchase orders to replenish stock.

4. Serial number and lot tracking: QuickBooks Advanced Inventory allows businesses to track inventory by serial number or lot. This feature is especially useful for businesses that deal with products that have expiration dates or require traceability.

5. FIFO costing: QuickBooks Advanced Inventory supports FIFO (First In First Out) costing, which ensures that the oldest inventory is sold first. This helps businesses avoid spoilage or obsolescence of inventory.

Setting up QuickBooks Advanced Inventory

To set up QuickBooks Advanced Inventory, follow these steps:

Step 1: Purchase QuickBooks Advanced Inventory

QuickBooks Advanced Inventory is an add-on module that requires an additional purchase. You can purchase it directly from Intuit or from a QuickBooks reseller.

Step 2: Enable Advanced Inventory in QuickBooks

Once you have purchased QuickBooks Advanced Inventory, you need to enable it in QuickBooks. To do this, go to Edit > Preferences > Items & Inventory > Company Preferences, and check the box next to "Enable Advanced Inventory."

Step 3: Set up Locations

Businesses may keep track of their inventory across various locations with QuickBooks Advanced Inventory. Before beginning to monitor inventory, you must first set up your locations in QuickBooks. You may create locations by going to Lists > Inventory Activities > Manage Locations.

Step 4: Set up Barcodes

If you plan to use barcode scanning, you need to set up your barcodes in QuickBooks. To do this, go to Lists > Inventory Activities > Manage Barcodes.

Step 5: Set up Reorder Points

To use the reorder points feature in QuickBooks Advanced Inventory, you need to set up reorder points for your products. To do this, go to Lists > Item List, select the product, and click on the "Edit" button. After that, set the "Reorder Point" field under the "Inventory Information" tab.

Step 6: Set up Serial Numbers and Lot Tracking

If you plan to use serial number or lot tracking, you need to set up your preferences in QuickBooks. To do this, go to Edit > Preferences > Items & Inventory > Company Preferences, and check the boxes next to "Serial/Lot Number Tracking."

Step 7: Set up FIFO Costing

QuickBooks Advanced Inventory supports FIFO costing. To use this feature, you need to set up your preferences in QuickBooks. To do this, go to Edit > Preferences > Items & Inventory > Company Preferences, and select "FIFO Costing" in the "Inventory Valuation Method" dropdown.

Benefits of QuickBooks Advanced Inventory

1. Improved inventory management: QuickBooks Advanced Inventory provides businesses with the tools they need to manage inventory more efficiently. It allows businesses to track inventory across multiple locations, set reorder points, and manage inventory using barcode scanning. This leads to fewer errors, lower costs, and higher productivity.

2. Real-time inventory updates: QuickBooks Advanced Inventory provides real-time updates on inventory levels, allowing businesses to make informed decisions about ordering and stocking products. This reduces the chances of overstocking or running out of stock.

3. Increased accuracy: QuickBooks Advanced Inventory supports barcode scanning, which makes inventory management more accurate. It eliminates the chances of errors in manual data entry, reducing the risks of miscounting, misplacing, or mislabeling items.

4. Customizable reports: QuickBooks Advanced Inventory allows businesses to generate customizable reports that provide insights into inventory levels, reorder points, and other inventory-related metrics. This helps businesses make informed decisions about inventory management and procurement.

5. Seamless integration: QuickBooks Advanced Inventory seamlessly integrates with other QuickBooks modules, such as Sales Order Fulfillment and Purchase Order Management. This makes it easy for businesses to manage their inventory across the entire supply chain.

Conclusion

QuickBooks Advanced Inventory is a powerful tool that can help businesses manage their inventory more efficiently. Its features, such as multi-location tracking, barcode scanning, and FIFO costing, can help businesses reduce costs, increase accuracy, and improve productivity. Setting up QuickBooks Advanced Inventory is straightforward and requires only a few steps. By using QuickBooks Advanced Inventory, businesses can gain real-time visibility into inventory levels, make informed decisions about ordering and stocking products, and improve their overall inventory management.