Those of you familiar with QuickBooks Online (QBO), know that rather than an Item List, like QB Desktop, QBO uses the terminology Products and Services List.
This list, in QBO, comprises the products and/or the services your company sells. When setting up a new item to sell, those have been the choices, product or service.
In the Plus version of QBO, you could specify that you wanted to track quantity on hand for a particular product.
Display the Products and Services list. It still looks the same. But, when you select the New button to add a product or service, what QBO calls a drawer opens. The ‘drawer’ is a partial screen entering from the side as opposed to a window in the middle of the screen.
An even more significant change is that now you have three types of items to choose from when creating a new product or service.
We will select Inventory Item.
Previous to this change, we would select Product and then check a box indicating we wanted to track quantity on hand. That selection would then make the item behave similar to an inventory pert type item in QuickBooks desktop.
That checkbox is no longer part of the product/item setup. Now the fact that we select Inventory Item in the first step of creating a new product causes QBO to track quantities for this item.
Just as before though, we still enter an initial quantity and an ‘as of’ date.
The initial quantity can be zero. In most cases this is the best solution. Enter a zero quantity then purchase the items on a check or bill. The one time it really makes sense to use the initial quantity is when first creating the QBO company file.
Even if the quantity is zero, the ‘as of’ date still needs to be entered. Be sure to use a date prior the date of the first transaction using your new item.
The remaining information needed for your new item is essentially the same as it was before. The major difference is the appearance of the setup window, and replacing the track quantity checkbox with a new item type.
Hector Garcia, CPA
Certified Advanced QuickBooks ProAdvisor
12401 Orange Drive #136
Davie, FL 33330