 QuickBooks Desktop 2023 Inventory Reports Let's do it within 2-its QuickBooks Desktop 2023 Support Accounting Instruction by clicking the link below giving you a free month membership to all of the content on our website broken out by category further broken out by course each course then organized in a logical, reasonable fashion making it much more easy to find what you need than can be done on a YouTube page we also include added resources such as Excel practice problems, PDF files and more like QuickBooks backup files when applicable so once again click the link below for a free month membership to our website and all the content on it QuickBooks Desktop Sample Raw Castle Construction Practice file provided by QuickBooks going through the setup process we do every time maximizing the home page going to the view drop down see that we got the hide icon bar open windows list checked off with the open windows open on the left go to the reports drop down company financial then P&L profit and loss to change the range from 0101242 123124 and then customize the reports with the fonts and the numbers to change it to 12 so we can say OK and then yes and then OK and then we're going to go to the reports drop downs again company and financial this time the big balance sheet will change it this time with the drop down this fiscal year poor Favore changing the font size to 12 and OK and say yes and OK that's the setup process we've been doing every time we're now looking at some subsidiary reports remembering that every other report other than these two main financial statement reports generally provides more detail expands upon some line item or multiple line items on one of these reports this time we're looking at the line item on the balance sheet of inventory we want more detail about the inventory now remember that when you're thinking about inventory you got to think about the different kind of methods that you might have with relation to tracking inventory so let's just do a quick recap on that if I go back to the home page over here note that inventory has a component that goes through both the vendor cycle or payable cycle or expenses cycle or whatever and purchases cycle you might call it and on the customer side of things revenue cycle because when you're purchasing the inventory we are clearly going to be paying a vendor for the inventory that we are purchasing and then when we sell the inventory we're going to be using the invoice or the sales receipt down here to sell them now note that that is assuming that we're using the perpetual inventory system and that if we're tracking this within the QuickBooks system we're using a perpetual inventory system but we don't necessarily have to do that we could use what's called a periodic inventory system in which case you might buy the inventory and still possibly record it on the purchasing side of things when you buy it but then you might try to take a physical count to record the decrease in the inventory and therefore when you sell the inventory even if using a sales receipt or invoice or sales receipt maybe you don't set up the items to track the inventory in the system with the sub ledger but rather you just do a physical count to then decrease the inventory yourself manually at the end of the night at the end of the week at the end of the month or something like that that could be a little bit easier in some cases when you're a small business and you're trying to track the inventory or you can try to track it within QuickBooks which of course would be a perpetual inventory system, QuickBooks desktop uses a weighted average flow assumption as opposed to a first in first out last in first out for example or specific identification we'll talk a little bit more about that shortly if you're using inventory and you don't understand those terms then you might want to do some more research just on how to track the inventory in an accounting system in general okay so given that we're going to assume of course that we're tracking the inventory in the system so when we buy the inventory when we enter a bill for example here that's going to be increasing the inventory and we can see that if I look at the items down below the items are the things that tells QuickBooks that you need to not only increase the inventory account on the balance sheet but also the sub ledger account tracking it by the inventory unit and then when we sell the inventory down here with an invoice or a sales receipt then it's going to be the item that's going to be telling us if it's an inventory item not just the sales price of the inventory but it's also going to tell us how much to decrease the inventory by the cost of the inventory and record the cost it could sold as we have seen in the past so now given that if we go back to the balance sheet there's our inventory that is on hand that we're waiting to sell in the future when we sell the inventory we're going to be decreasing the inventory account here and recording it as an expense of the inventory we used to generate revenue called cost of goods sold so if we go to the reports dropdown to give us the more detail we can go to the inventory reports you got the inventory valuation and detail the two main reports here let's get there also by going to the reports center up top, maximize in the reports center because it always unmaximizes for some unknown reason and the main report would probably be the inventory valuation summary so let's go ahead and run that one and let's hit the dropdown and say this is going to be for the fiscal year notice this report is an as of a point in time report because it's given us detail based on a balance sheet account as of a point in time it's not really measuring performance over a time range so let's try to customize it and increase the fonts a little so we can get a little bit more hopefully that doesn't mess things up too much it totally messes everything up messes everything up okay it's okay let me just make these a little bit larger okay so then I'm going to scroll all the way to the left so we've got the amount on hand we got the average cost the asset value the percent of assets and then the sales price so it's given us both what we're purchasing the item for as well as what we're selling the item for when we're tracking the inventory on our balance sheet we're putting it there at cost not the amount that we're going to sell the item for what we purchased it for so the amount on hand of course be the units of the inventory we have that's going to be useful something we need to know because periodically even if using a perpetual inventory system we're going to want to do a physical count and make sure that we tie out and then record any kind of shrinkage resulting from theft or spoilage or something like that and then we've got the average cost so this is how much it costs on average now why would it put an average cost there note that if we're looking at these units and we're assuming that these units are all the same type of unit meaning if you were to go into the warehouse and just pick one out they would all be basically the same then the question is well how are we going to account for it over time as the price of these things might go up so if the price goes up over time then you have to use a flow assumption that's where the FIFO LIFO average comes in we are using an average so even if the cost of these units changed we've paid different amounts for those 400 units even though they're all the same because of inflation or something like that then we're just going to be using an average cost and that's where we get the asset value here so obviously if that's the average cost it would be 400 times the 2.56 and there's the 1024 about and then we've got the percent of assets so you could have a comparison of this line item let's say this was 10,000 this 100023.74 divided by the total divided by the total down here of 30624.52 and move that back up and that should give us then our percent if I move the decimal two places over 32.7 about and then we have the sales price note that this file doesn't always have a sales price in part because they're using a job cost system I think it's useful to note at this point that if you're doing bookkeeping or accounting work you might want to think about kind of specializing in particular industries and inventory is one of those areas where you can do some specialization so for example you might want to ask questions like do you track inventory do you have or are you basically a service business if they have inventory do they track it within the system using a perpetual inventory system or outside of it using some kind of periodic inventory system is it the kind of company that basically simply buying inventory marking up the inventory and then selling it making a profit from the increase in the price when they sell it or are they buying inventory as a raw material and then creating the end product from it in which case you would be using say a job cost system most likely or possibly a process cost system which those kind of systems typically have more specialization so even if you're tracking inventory in the system the easiest inventory would typically be one where they're not manufacturing they're not starting with raw materials and then making the inventory that's more of a specialized field it would be one in which they're buying inventory marking it up and then say selling inventory so in any case if you if we look at some of these items here's the sales price and this is the what we what we bought it for so one thousand five hundred selling them for one thousand seven ninety nine and then of course we can calculate the retail price which is going to be the units on hand times the price so in this case we've got the units on hand which are way over here at the six of them six of these times and then if we go to the right we said we have the sales price times one seven ninety nine it's going to give us our ten seventy nine so then the total if I go back to the left here if I take the total here we got the thirty thousand six twenty four fifty two should tie out to the balance sheet thirty thousand six twenty four fifty two now this one usually will tie out if you're using a kind of perpetual inventory system but remember QuickBooks is not as stringent to make sure the subsidiary account ties out here as they are with the accounts receivable and the accounts payable as we saw with the accounts receivable even if you choose to record something to accounts receivable that's not using the sales forms for example if you use these two forms the sub ledger will clearly have the data it needs but you could say make a journal entry and post something to accounts receivable or accounts payable in which case it would require you to post it to have a vendor or customer whereas it's possible to post something to inventory and not assign it to an item so you have to kind of be careful with that that doesn't you don't usually do that but that could throw off your sub ledger which can kind of mess everything up just something to keep in mind okay so that's the main report going to close this back out the other reports that you might have in the report center we got the inventory valuation detail let's run it changing the range this is going to be for this fiscal year now this one is a range let's let's customize it too and so we can make it a little bit larger let's make it just 11 this time see if that makes me widen all the columns again that's not too bad okay so so now we this one is a range because it's showing the detail within each of these categories so the bills the invoices are the things that are decreasing the inventory items and the bills in this case are the things that are increasing a bill means we're purchasing something cash is ultimately going to go out at the end of the day that's us buying inventory the invoice means we're selling something so at the end of the day we hope to get something going into the checking account and the inventory is going down because that's what we are selling so here's our more detailed report giving us some activity on the inventory and let's go back in then we got the inventory stock status we got inventory stock status by item so you can look at the units so now we've got the reorder point so when we have the inventory we can set kind of the reorder point meaning if inventory goes below a certain threshold QuickBooks will remind us that you need to buy more inventory we've got the amount on hand here this is going to be important because we want to tie that out to the physical count even though we're tracking inventory within QuickBooks here on a perpetual inventory system meaning it goes up when we buy the inventory automatically it goes down when we sell the inventory the physical count can differ due to things like theft due to things like spoilage and so we have to then count the inventory and make sure it still ties out so we got the inventory stock status by vendor so we can have a stock status broken out by who we buy the inventory from the physical count worksheet is going to give us then the quantity on hand which we can compare to the physical count typically if you're having employee count the physical count you probably don't want to show them the actual quantity on hand because you want them to count the physical count and not know the quantity on hand so that you so they're not likely to cheat and just sit back and not do anything and just write down 400 in the box or something it's an internal control in other words so and then you got the pending builds so that's going to be the general inventory reports