Advanced Inventory for QuickBooks allows the tracking of inventory by various sites and a further designation of aisle, shelf, or bin locations within those sites.
The setup begins with the preferences. Edit->Preferences->Items & Inventory->Company Preferences->Advanced Inventory.
The preferences allow the setting of various options such as when warning messages should be displayed. It also permits the option of using some type of location, like bin, beyond just the site. Again, there is an optional warning message if merchandise is sold in quantity beyond what is in a specific location.
The list of sites created can be accessed at Lists->Inventory Site List. New locations can be added here as well.
Let’s setup a new site for Bakersfield.
The only required field to create this new location is Name. Others are optional. By using the checkbox, “is a bin within site”, we could create aisle or bin locations within existing inventory sites.
Site assignments for incoming merchandise can be set with the Item Receipt.
QuickBooks then keeps track of quantities by site and requires a site designation when items are sold.
If we attempt to specify the new Bakersfield location as the site for the goods being sold on a new invoice, QuickBooks will warn us that there is insufficient quantity at that site. However, it will allow us to sell this inventory anyway.
The result will be a negative on hand quantity at one site, while there may be positive inventory on hand company-wide.
It’s also important to note that QuickBooks does not track cost by site. Each inventory or inventory assembly type item will have the same cost company-wide. This is true when using the default average cost solution or the Advanced Inventory optional FIFO method.
When faced with a situation like the previous invoicing error (selling inventory from the wrong site), or needing to physically transfer inventory from one site to another, a special transaction exists in QuickBooks to accomplish this process.
This form is available at Inventory->Transfer Inventory. Once the above transaction is recorded, we will no longer have a negative inventory situation at the Bakersfield site.
The build assembly window allows for the selection of component parts by location and the specification of location for the finished product.
The Unassigned designation is a QuickBooks created location used when site tracking is first turned on. The Inventory Transfer procedure can be used to re-locate all inventory, or the Unassigned ‘location’ can be sold out in time as all new goods are assigned locations as they are received.
Hector Garcia, CPA
Certified Advanced QuickBooks ProAdvisor