How to Create Inventory Products in QuickBooks Online: Step-by-Step Guide

1. Introduction and Purpose

Creating inventory products in QuickBooks Online lets you manage available stock, acquisition costs and sale prices from a single platform.Proper item setup facilitates tracking of goods, improves catalog organization and helps keep accounting records up to date.

2. Steps for Product Creation

• Access to products and services: Log in to QuickBooks Online and go to the products and services section from the sales or settings menu, according to the interface available.
• Product type selection: Click the option to create a new item and select the type Inventory. This feature must be available and enabled in your QuickBooks plan.
• General information: Enter the product name, SKU code, category, and description, according to the available fields.
• Sales configuration: Set the sale price and select the revenue account corresponding to the product.
• Purchase configuration: Record the acquisition cost and verify the cost of goods sold account associated with the item.
• Initial stock: Enter the quantity available at the time of creating the product, the reference date, and the data needed to establish its initial inventory value.
• Save and verify: Review the entered information and save the product to add it to the QuickBooks Online catalog.

3. Continuous Movement Log

• Purchase recording: When acquiring new units, record purchase transactions using the appropriate documents and select the inventory product to update stock levels.
• Sales recording: When issuing sales invoices, select the inventory product so QuickBooks deducts the sold units and records the corresponding cost of goods sold.
• Quantity control: Check available stock and verify recorded movements to maintain a track of inbound and outbound items.
• Inventory adjustments: When there are differences between physical and recorded quantities, use the available adjustment tools to make the appropriate corrections.
• Tracking and analysis: Review inventory reports to assess costs, available quantities, and product movements.

4. Video Tutorial

Check out our tutorial video to learn how to create inventory products in QuickBooks Online, set up their prices, costs and initial stock, and maintain organized control of your company's merchandise.