Companies that work with inventory have unique needs. Tracking sales and quantities of specific products to sell adds a vast layer of complexity to accounting software. Fortunately, QuickBooks is built to deal with it. How well it deals with it depends on the level of QuickBooks product you use.
Today we’ll compare some of the differences commonly found when managing inventory in the basic level of QuickBooks Enterprise and QuickBooks Premier. QuickBooks Enterprise comes in several levels. Those levels affect the inventory management capabilities of the product. For now, we’ll stick with the lowest level.
First, let’s examine the inventory center.
Above is a screenshot of the inventory center in QuickBooks Premier. The circled area shows the cost and price information for the item that is selected in the list on the left-hand side.
Below is the screenshot of the inventory center in QuickBooks Enterprise.
Enterprise also shows the cost and price information for the selected item. However, in Enterprise that information is editable from right here. Furthermore, the desired margin or markup can be entered and QuickBooks will compute the new price on this screen.
To try that out, let’s change the margin on this Virus Vac A item to 40% rather than the current 50%.
Note that the price changed from $75 before at a 50% margin to $62.50 now reflecting the newly entered desired margin of 40%.
This capability facilitates rapid price changes based on a desired markup or margin. You can use either. The change is instantaneous. Enter margin or markup, whichever you prefer. Or, alternatively, enter the price directly and see the new effective margin or markup.
Besides the rapid price change advantage, this feature allows for experimentation with prices while taking little time to accomplish the comparisons. When one field is changed, the others update immediately.
Maybe you’d like to charge 9.95 for an item, but want to know what happens to the margin when you do. The inventory center in QuickBooks Enterprise works great for those kinds of ‘what-if’ scenarios.
A picture is worth…
Another difference in the inventory center in QuickBooks Enterprise is the ability to enter a picture.
All we need to do is to drag our image to the designated area and we’ll have an illustration of our product in QuickBooks.