Hello to all my friends using QuickBooks Online for inventory management! This QuickBooks Online Inventory video will teach you all about non-inventory parts in QuickBooks online. These are 2 sided items that you buy and sell but do not need to track the running quantity of. Usually, they are NOT the merchandise that you buy and sell. They are physical materials that you use on a job or things that you buy and sell but do not need to know the profit from each individual item. They belong on the same products and service lists as regular inventory These goods can have quantities listed when buying and selling but do not have reports that show quantity on hand. I thank you all and hope that you will click “like” and “subscribe.
I really loved video because you have taught more about non-inventory parts than I every learned in the last 3 weeks in a quickbooks online course, so please let me know when you upload the part 3 to this video and keep up the great work. I do follow you on Facebook.
We own a pool service business. We charge our custumers for the cleaning service at a flat rate then charge them additionally for the amount of chemicals(chlorine) we used. We don't track how many chemicals we have on our truck because we reload every week in person and switch out our used chlorine bottles for new ones and continue cleaning. Can we record chemical/chlorine sales as income under sales of product income and the purchases of chemicals/chlorine under business expenses in expenses?
Hi, In this example the the profit changes because of treatment of a purchased item as inventory and non-inventory. It makes sense to make this inventory so the profits are real. Does QB allow to change the non-inventory classification to inventory classification after actual posting? If yes, what are the steps?
It does not. You can use these non-inventory parts and simply be aware what happens to income and expenses for sided items. It's rarely an issue unless you need to adjust your numbers to report for G.A.A.P
Thank you for your question but I have encountered so many buzzwords and business phrases and catch phrases over the years that you would have to clarify what dropshipping accounting means And by the way don't get too used to that term because in a couple of years no one will use those words anymore the latest fashionable words will change
We have an archery shop and do not keep inventory of the arrows and arrow parts. We sell some and also give some away when someone purchases a bow. We have QB POS 18 which isn't connected to my QB Online which I use for accounting. I manually have to enter things in on the online. My accountant recommended as I'm entering a bill to enter it straight to Arrows & Parts Non inventory COGS expense account we set up. I'm not sure this is correct as now all of my bills for the arrows purchased are now going straight to the COGS account. How does this work when we do sell some?
Thank you I do want to help you but that's more of an accounting question than a quick book question In my opinion,ultimately whatever you spend is going to be deducted and it won't mat if you categorize it just cost a good sold or an expense I suggest that you click in the top right corner of this video to get the link to the full inventory playlist and once you have the knowledge by watching. The videos and proper order. You will be mourned formed and might be able to make a better decision for yourself. Mark
Hello. Thank you for the video. What if we have to pay for a license? For example, we bought a piece of equipment and we bought a license for this equipment. As I see according to the Uniform capitalization rules I have to capitalized the license costs as a value of inventory. Is it correct?
Thank you very much but that is a accounting question and not a QuickBooks question Capitalizing expenses depends on several things so I would ask your local CPA Mark
sir how do i handle a situation where i run a bookshop and already have a software tracking the inventory. in QBO i only want to create a single item -books and stationeries. when i bring stock from my suppliers i want to create a bill in the QBO and pay the bill .i have four branches and i want to create each branch as a customer because majorly they handle cash sales and using the them( as customer) i generate sales receipts daily. now i that a problem with the P and L account under the cost of goods because when i generate the report QBO includes all the purchases i made as the COGS whereas the true situation is that some of these purchases are still in the stock not yet sold. hos do i handle this situation so that i only the corresponding COGS for the actual sales in my P and L. kindly assist with this
Thnak you I may be able to help. I have an example of how to use a separate software just to track inventory, and then record the results in to QBO. This is the AMAZON store playlist. numbers: 6,7, and 8 in this playlist will show you an example of what you need to do. ua-cam.com/video/bGKLwCbd-o0/v-deo.html You can also watxh the full inventory course here to mater the idea so you can come up with your own way of handling this. ua-cam.com/video/LYQKnsYXsjY/v-deo.html -Mark
Every time i am stuck in accounting, I will watch your videos to find answer. However I am still confused. Please clarify this! Example: my finish product to sell including, Carton box, labor work and equipment 1. For Poly Bag and carton box are to enclosed product , do you count as supplies under expense or COGs under supply and material? 2. Under schedule C in COGS beside product cost, it ask for material, labor,equipment and rental. How do I set up in quick book for material supplies, labor and equipment ?
Thank you but I do not understand your question at all Instead of giving me an example just explain what the issue is because if you need the merchandise inventory playlist I can give you and it will explain everything. If you need any other playlist like a contract displaylist I can give you that as well. If you manufacture items and wish to assign all the costs to the manufactured item then I cannot help you because you need the assembly's feature if your manufacturing So please clarify which category of knowledge you need and I will send you the appropriate playlist Mark
1. Basically, I put my merchandise in poly bag. Do we claim cost of bag as expense or GOGS. If we claim As GOGS, is that inventory or non inventory? 2. As non inventory we don’t keep track of quantity, can we expense all cost for tax deduction even-though we still have inventory? Thanks!
I really loved video because I just took qbonline class you have explained more than we went over in 3 weeks, so please let me know when upload part 3 to this video Thanks in advance. I do follow you on Facebook
I was trying to help someone set up their non-inventory items following your instructions. But, when we got to actually adding the item we could only enter the income account. There was no place to enter the expense account. In your video there was a checkbox called something about purchasing the item from a vendor. After you checked that box you could add the cost and expense account. We don't have that option. Are we doing something wrong?
OK if you're following my instruction then you should be able to replicate what you See You have to look in the items list itself when you add the new item to choose to make it a 2 sided item it's a check mark that says "item will be Part of assemblies" Look for that
@@worldwidequickbooks I experienced the same thing as Workglue. My QBO doesn't show the Checkbox to Purchase from a Vendor and attach an expense account
Hello to all my friends using QuickBooks Online for inventory management! This QuickBooks Online Inventory video will teach you all about non-inventory parts in QuickBooks online. These are 2 sided items that you buy and sell but do not need to track the running quantity of. Usually, they are NOT the merchandise that you buy and sell. They are physical materials that you use on a job or things that you buy and sell but do not need to know the profit from each individual item. They belong on the same products and service lists as regular inventory These goods can have quantities listed when buying and selling but do not have reports that show quantity on hand.
I thank you all and hope that you will click “like” and “subscribe.
I really loved video because you have taught more about non-inventory parts than I every learned in the last 3 weeks in a quickbooks online course, so please let me know when you upload the part 3 to this video and keep up the great work. I do follow you on Facebook.
Just uploaded cash purchases yesterday, tommorow, on account merchandise purchases. Check the playlist for new videos every 48 hours
Thank you Mark once again for this very very informative tutorial. And the 3 methods are so easy and will be very effective ahead.
Glad it was helpful!
We own a pool service business. We charge our custumers for the cleaning service at a flat rate then charge them additionally for the amount of chemicals(chlorine) we used. We don't track how many chemicals we have on our truck because we reload every week in person and switch out our used chlorine bottles for new ones and continue cleaning. Can we record chemical/chlorine sales as income under sales of product income and the purchases of chemicals/chlorine under business expenses in expenses?
This is the perfect video for what you need. Try using "non-inventory" 2-sided items.
-Mark
Hi, In this example the the profit changes because of treatment of a purchased item as inventory and non-inventory. It makes sense to make this inventory so the profits are real. Does QB allow to change the non-inventory classification to inventory classification after actual posting? If yes, what are the steps?
It does not. You can use these non-inventory parts and simply be aware what happens to income and expenses for sided items. It's rarely an issue unless you need to adjust your numbers to report for G.A.A.P
Thank you for your presentation. Is it a good idea to use non-inventory items for drop shipping accounting?
Thank you for your question but I have encountered so many buzzwords and business phrases and catch phrases over the years that you would have to clarify what dropshipping accounting means
And by the way don't get too used to that term because in a couple of years no one will use those words anymore the latest fashionable words will change
We have an archery shop and do not keep inventory of the arrows and arrow parts. We sell some and also give some away when someone purchases a bow. We have QB POS 18 which isn't connected to my QB Online which I use for accounting. I manually have to enter things in on the online. My accountant recommended as I'm entering a bill to enter it straight to Arrows & Parts Non inventory COGS expense account we set up. I'm not sure this is correct as now all of my bills for the arrows purchased are now going straight to the COGS account. How does this work when we do sell some?
Thank you I do want to help you but that's more of an accounting question than a quick book question
In my opinion,ultimately whatever you spend is going to be deducted and it won't mat if you categorize it just cost a good sold or an expense
I suggest that you click in the top right corner of this video to get the link to the full inventory playlist and once you have the knowledge by watching. The videos and proper order.
You will be mourned formed and might be able to make a better decision for yourself.
Mark
Hello. Thank you for the video. What if we have to pay for a license? For example, we bought a piece of equipment and we bought a license for this equipment. As I see according to the Uniform capitalization rules I have to capitalized the license costs as a value of inventory. Is it correct?
Thank you very much but that is a accounting question and not a QuickBooks question
Capitalizing expenses depends on several things so I would ask your local CPA
Mark
sir how do i handle a situation where i run a bookshop and already have a software tracking the inventory. in QBO i only want to create a single item -books and stationeries. when i bring stock from my suppliers i want to create a bill in the QBO and pay the bill .i have four branches and i want to create each branch as a customer because majorly they handle cash sales and using the them( as customer) i generate sales receipts daily. now i that a problem with the P and L account under the cost of goods because when i generate the report QBO includes all the purchases i made as the COGS whereas the true situation is that some of these purchases are still in the stock not yet sold. hos do i handle this situation so that i only the corresponding COGS for the actual sales in my P and L. kindly assist with this
Thnak you I may be able to help.
I have an example of how to use a separate software just to track inventory, and then record the results in to QBO. This is the AMAZON store playlist. numbers: 6,7, and 8 in this playlist will show you an example of what you need to do.
ua-cam.com/video/bGKLwCbd-o0/v-deo.html
You can also watxh the full inventory course here to mater the idea so you can come up with your own way of handling this.
ua-cam.com/video/LYQKnsYXsjY/v-deo.html
-Mark
@@worldwidequickbooks thanks so much it has really helped me, now i understand it
Every time i am stuck in accounting, I will watch your videos to find answer. However I am still confused. Please clarify this!
Example:
my finish product to sell including, Carton box, labor work and equipment
1. For Poly Bag and carton box are to enclosed product , do you count as supplies under expense or COGs under supply and material?
2. Under schedule C in COGS beside product cost, it ask for material, labor,equipment and rental. How do I set up in quick book for material supplies, labor and equipment ?
Thank you but I do not understand your question at all
Instead of giving me an example just explain what the issue is because if you need the merchandise inventory playlist I can give you and it will explain everything. If you need any other playlist like a contract displaylist I can give you that as well. If you manufacture items and wish to assign all the costs to the manufactured item then I cannot help you because you need the assembly's feature if your manufacturing
So please clarify which category of knowledge you need and I will send you the appropriate playlist
Mark
1. Basically, I put my merchandise in poly bag. Do we claim cost of bag as expense or GOGS. If we claim As GOGS, is that inventory or non inventory?
2. As non inventory we don’t keep track of quantity, can we expense all cost for tax deduction even-though we still have inventory?
Thanks!
Nice presentation
Glad you liked it. I hope you will "like" and subscribe.
-Mark
I really loved video because I just took qbonline class you have explained more than we went over in 3 weeks, so please let me know when upload part 3 to this video Thanks in advance. I do follow you on Facebook
Wow, thank you
I was trying to help someone set up their non-inventory items following your instructions. But, when we got to actually adding the item we could only enter the income account. There was no place to enter the expense account. In your video there was a checkbox called something about purchasing the item from a vendor. After you checked that box you could add the cost and expense account. We don't have that option. Are we doing something wrong?
OK if you're following my instruction then you should be able to replicate what you See
You have to look in the items list itself when you add the new item to choose to make it a 2 sided item it's a check mark that says "item will be Part of assemblies"
Look for that
@@worldwidequickbooks I experienced the same thing as Workglue. My QBO doesn't show the Checkbox to Purchase from a Vendor and attach an expense account