How to add inventory items in QuickBooks

Check your plan. Intuit says inventory features are available for QuickBooks Online Plus, and its article on adding inventory products lists that plan alone.

Turn on inventory tracking first. Intuit asks for this before any items are added, because it's what lets QuickBooks keep stock levels up to date for you as you work.

Be sure the product is inventory. QuickBooks has four types. Inventory is for products you sell and track quantities of. Non-inventory is for things you buy or sell without counting them, such as nuts and bolts used on installation jobs but not sold on their own. Service is for work you provide, and Bundle is for several products or services sold together as one item, like a gift basket. A product already set up as non-inventory can have its type changed to inventory rather than being created again.

Work out the starting quantity. If you're new to QuickBooks, it's the stock you held on the date you plan to start tracking from, such as the start of your financial year. For a new product from a supplier, Intuit says to enter 0 and then record what you receive, so the opening figure isn't doubled.

1. Go to Settings and select Products and services.
2. Select New, then select Inventory.
3. Enter a Name, which is required, and a SKU for the product.
4. If you group your products, choose one from the Category dropdown.
5. Enter the Initial quantity on hand, and in the As of date field the date you started tracking that quantity.
6. Add a Reorder point if you want an alert when it's time to order more.
7. From the Inventory asset account dropdown, select Inventory Asset, the account Intuit's steps choose.
8. Add the description that should appear on sales forms, then the Sales price/rate.
9. From the Income account dropdown, find the account you use to track what you sell. To create one, select + Add new at the top of the list.
10. Add the description for purchase forms, then the product's Cost.
11. From the Expense account dropdown, select Cost of sales, as Intuit's steps do.
12. Choose a Preferred Supplier, then select Save and close.

Already keeping your products in a spreadsheet? Intuit suggests importing them all at once instead. Go to Settings, select Import data, then Products and Services, and select Import from file. The sample csv file on that screen shows the layout. Upload your Excel or CSV file with Browse, match each column to a QuickBooks field, fix any cells highlighted in red, and select Save. An import can't be undone, and each file takes up to 1,000 rows. On the older version of the import screen, the button is Import CSV and only CSV files are taken.

The product is saved to your products and services list and can be added to sales forms. From here QuickBooks updates its quantity on hand as you work, and the reorder point you set brings up an alert when it's time to buy more.

The two descriptions turn up on different documents. The sales description shows on invoices, sales receipts and other forms you send customers. The purchase description shows on bills, purchase orders and other forms you send suppliers. QuickBooks remembers the Preferred Supplier, which makes it simpler to reorder the product from them.

The Cost you entered isn't fixed. If the price changes, you can enter the new one when you buy more stock. The accounts on the item are the ones Intuit's steps pick; if you're unsure which accounts suit your business, check with your accountant. Each new product you start selling is set up the same way.