QuickBooks Online Inventory

Professional woman standing in a warehouse, between rows of very tall shelves containing large boxes. She is holding a clipboard and has a calculator laying on a box in front of her, as if she is doing an inventory count.

The QuickBooks Online Inventory feature can be somewhat confusing. My goal is not to give you detailed instructions on every aspect of the inventory feature, but instead to provide some information that may guide you as you learn how to use it.

There are a number of different transactions you can record in QuickBooks Online which impact inventory, and some that do not. I’ve prepared a one-page PDF handout that summarizes how transactions impact inventory. I’m also duplicating the content here.

These actions INCREASE (Debit) Inventory

  • Creating a bill
  • Writing or printing a check
  • Recording an Expense
  • Creating a credit memo
  • Creating a refund receipt
  • Recording positive inventory adjustments

NOTE: Creating a bill will NOT increase inventory unless you add (or connect) a purchase order to it. When you create the bill, open purchase orders will be listed on the right side of the bill screen.

These actions DECREASE (Credit) Inventory

  • Creating invoices
  • Creating sales receipts
  • Creating vendor credits
  • Entering credit card credits
  • Making negative inventory adjustments

Actions that DO NOT Affect Inventory

  • Creating estimates or purchase orders
  • Receiving customer payments
  • Paying bills
  • Recording transfers
  • Creating journal entries

I hope you find this information helpful.

author avatar
Gwen Harrison President

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