Two questions. Question 1: Is this process still the best option as of today? Or did QB create a better way of managing inventory costs before they are ready for sale in QB online or QB desktop? Question 2: If you want to see historical costs that went into the WIP account of the Chevy (parts, labor, etc.) after you transfer it to Inventory, can you drill down into that WIP line item that now shows $0 and see the costs that went into that vehicle? Just to see all costs that went into the total Inventory COGS amount?
Great video Hector, Thank you! Additional question: if the item happens to be sold when you are entering an a/p invoice against the inventory item, would QB recognize the sales and automatically record to COGS vs adjusting the inventory? We have two team members entering data, one could sell the item prior to a/p team mate entering the invoice.
Thank you for the video/solution. I'd like to begin using method 2 for allocating additional costs for 2023. Do you recommend going back to January to allocate costs, or should I just use the method going forward. Thank you.
Good to see your explanation but how can we check the breakdown of all costs (repair, parts, wash, and fuel) incurred on each unit? Secondly, what if we want to see the total of repair, parts, wash incurred on all vehicles made ready in a specific month?
Thanks. But I have a question.Sometimes, we buy a goods from foreign vendors with foreign currency. and some multiple costs maybe with a local currency. in this case, does this solution work?
With the 2nd method, would it be possible to only add the cost of the part to the product and have 0 be the quantity? That way you could still increase the valuation of the inventory item without having to subtract the original cost or add/remove quantities. Or would that not add the part cost to the COGS account when you mark the item as sold? Edit: Trying this, QuickBooks Online does not allow you to enter an amount as being greater than 0 if the quantity is 0.
Great video. Wish the expenses you had building the inventory item would show up in COGS on your P/L. I like hitting that report and seeing my account costs/incomes quick and simple. Seems you cant have it both ways
Hi Hector, thanks for another great video. I think this is going to be helpful to me, but here's what I need to know. Our business is sales and service of wheelchairs and so we sometimes purchase used wheelchairs from current customers and try to sell them for the customer. We of course assess the chair to ensure it is in great condition prior to selling so we inevitably need to replace parts out of our inventory. So, I understand to put the chair into inventory, but how do I assign parts to that chair. Example, we buy the chair and add two casters. How do we take the casters out of inventory and put on the chair.
If you put the chairs in inventory, then you can follow the exact same steps here to increase the value of those items by adjusting the inventory part’s cost.
@@HectorGarciaCPA Thanks for responding Hector! I'm just not understanding how the casters get removed from inventory and charged to the chair. Do I have to enter that manually. For example, I follow your directions as above and then go to casters inventory and do a quantity adjustment with a note saying they went to that particular chair?
@@bobdumanoir9337 they need to come into inventory first via a purchase or an adjustment. Then you sell it via an invoice or sales receipt to make it “come out” or use the workflow explained in the video
Hello Hector, Great and really helpful video. Just one question, at the year end accounts by doing the second method wouldn't the car inventory value be overvalued? Please clarify or maybe im missing something, lol
I actually have a small business that does a little bit manufacturing, equipment sales, parts sales, in-shop and in-field repairs, and rentals. Sometimes items we buy to sell in our parts department are bundled together to sell both individually and as kits, other times these same items are used in manufacturing, repairs for customers, or repairs for equipment to be sold. Is there a web based software that you would recommend for all of these functions? I currently have QBO advanced, but it does not work for all areas. Thanks in advance.
I have a client who fits closely with the scenario you used in your video, with one exception. He sells mainly to one customer on consignment. When I run the Sales By Product Summary, only a few of the vehicles have a COGS value. Do you know why this is? All the vehicles have been sold. Thanks in advance.
Enjoy your videos, especial when you continue to tape while something goes wrong (QBO hiccup), It is good to know that I am not the only one. I am also a CPA and long time desk stop user (1995!). Do you recommend establishing a sub account to the inventory asset account to track similar components. I do understand that this can easily overwhelm the chart of accounts, but would like your opinion please. Thank you and much peace.
Excellent video as always, Hector! Question: you mentioned at the end of the video that the process that you discussed is different than manufacturing with inventory assemblies. Could the methods that you showed in this video still be a workaround for an inventory assemblies process in QBO since QBO doesn't have this feature (the feature is only available in QB Desktop)?
Great Video!! I have a question: Example, I bought 100 chairs the cost me in 2020 $50 each, when I Run my Inventory summary to see how much I have in Inventory it says $5000, than I bought another 50 pieces and added on inventory but cost me $60 now. If I run the inventory it shows $7500, in those new 50 pieces how can I change the start price to $60 without touching my old inventory that I bought it for $50?
I have the same question too. Hopefully it can be answered. QB don’t have function that can manage inventory with different cost in different period. New cost will alter the old price.
Hi Hector, I own a bar and I would like to know how do I keep inventory of my liquor bottle. As I don't only sell bottles but mostly a shot out of a bottle. How do I record that I QBO?
@@HectorGarciaCPA thanks for your fast reply. And what if I would like to use QBO for creating PO's and also viewing my sales per product and not for keeping track of my inventory amount. Then I should create all my sell items as 'Non-inventory items'?
Afcource you can do that, all you have to do is When you enter your inventory Items enter it as Liters or Oz and when you sell it to customers use the same measure method
QBO support suggested to watch your videos! I wonder if there’s any way to sell existing inventory item in parts. We purchased it with price in whole, but would like to break down prices to a couple of components to sell. I can’t seem to find a way to change inventory to another product. I would appreciate your input.
Hi Hector, thank you for this great video. Do you have the same video on QB enterprise? we are manufacturing plant using QBO and KatanaMRP. I want to allocate insurance and shipping for all items that are procured from abroad.
Hola, tengo una pregunta, cuando hago el invoice debo cobrar el sale tax? en mi caso la compania no es un dealer, es una s corp que hace servicio, renta y vende vehiculos, gracias de antemano@@HectorGarciaCPA
gracias por responder, la venta de carros es muy poca porque no tiene licencia de dealer, el cliente al momento de registrar el vehiculo como hace para no pagar el sale tax nuevamente@@HectorGarciaCPA
WHAT NONSENSE YOU ARE GIVING THE TRAINING OF RESHAPING INVENTORY. IF QUICKBOOK DO NOT GIVE THIS FACILITYIN THE SOFTWARE WHY YOU ARE PUTTING YOUR ILLOGICAL IDEAS
Two questions. Question 1: Is this process still the best option as of today? Or did QB create a better way of managing inventory costs before they are ready for sale in QB online or QB desktop? Question 2: If you want to see historical costs that went into the WIP account of the Chevy (parts, labor, etc.) after you transfer it to Inventory, can you drill down into that WIP line item that now shows $0 and see the costs that went into that vehicle? Just to see all costs that went into the total Inventory COGS amount?
Great video Hector, Thank you! Additional question: if the item happens to be sold when you are entering an a/p invoice against the inventory item, would QB recognize the sales and automatically record to COGS vs adjusting the inventory? We have two team members entering data, one could sell the item prior to a/p team mate entering the invoice.
It will recalculate based on FIFO
Thank you for the video/solution. I'd like to begin using method 2 for allocating additional costs for 2023. Do you recommend going back to January to allocate costs, or should I just use the method going forward. Thank you.
Yes a consistent tax year is ideal
Good to see your explanation but how can we check the breakdown of all costs (repair, parts, wash, and fuel) incurred on each unit? Secondly, what if we want to see the total of repair, parts, wash incurred on all vehicles made ready in a specific month?
You wouldn’t be able to if you prefer to have it as Part of the Inventory value, is the sacrifice you would make
Thanks. But I have a question.Sometimes, we buy a goods from foreign vendors with foreign currency. and some multiple costs maybe with a local currency. in this case, does this solution work?
It should work too
Great video! Helped with consolidating COGS expenses for e-commerce inventory as well!
:)
With the 2nd method, would it be possible to only add the cost of the part to the product and have 0 be the quantity? That way you could still increase the valuation of the inventory item without having to subtract the original cost or add/remove quantities. Or would that not add the part cost to the COGS account when you mark the item as sold?
Edit: Trying this, QuickBooks Online does not allow you to enter an amount as being greater than 0 if the quantity is 0.
Great video. Wish the expenses you had building the inventory item would show up in COGS on your P/L. I like hitting that report and seeing my account costs/incomes quick and simple. Seems you cant have it both ways
Correct
Hi Hector, thanks for another great video. I think this is going to be helpful to me, but here's what I need to know. Our business is sales and service of wheelchairs and so we sometimes purchase used wheelchairs from current customers and try to sell them for the customer. We of course assess the chair to ensure it is in great condition prior to selling so we inevitably need to replace parts out of our inventory. So, I understand to put the chair into inventory, but how do I assign parts to that chair. Example, we buy the chair and add two casters. How do we take the casters out of inventory and put on the chair.
If you put the chairs in inventory, then you can follow the exact same steps here to increase the value of those items by adjusting the inventory part’s cost.
@@HectorGarciaCPA Thanks for responding Hector! I'm just not understanding how the casters get removed from inventory and charged to the chair. Do I have to enter that manually. For example, I follow your directions as above and then go to casters inventory and do a quantity adjustment with a note saying they went to that particular chair?
So if your alternator and mudflaps came out of inventory rather than a new purchase - how would you enter to show they came out of inventory/
@@bobdumanoir9337 they need to come into inventory first via a purchase or an adjustment.
Then you sell it via an invoice or sales receipt to make it “come out” or use the workflow explained in the video
@@HectorGarciaCPA Thanks Hector. I was just thinking about doing an invoice. Thanks for your help.
Hello Hector, Great and really helpful video. Just one question, at the year end accounts by doing the second method wouldn't the car inventory value be overvalued? Please clarify or maybe im missing something, lol
If they are all in the balance sheet, there is no over/under valuation.. it stays with the asset until sold
I actually have a small business that does a little bit manufacturing, equipment sales, parts sales, in-shop and in-field repairs, and rentals. Sometimes items we buy to sell in our parts department are bundled together to sell both individually and as kits, other times these same items are used in manufacturing, repairs for customers, or repairs for equipment to be sold. Is there a web based software that you would recommend for all of these functions? I currently have QBO advanced, but it does not work for all areas. Thanks in advance.
I have a client who fits closely with the scenario you used in your video, with one exception. He sells mainly to one customer on consignment. When I run the Sales By Product Summary, only a few of the vehicles have a COGS value. Do you know why this is? All the vehicles have been sold. Thanks in advance.
If they are not setup as an inventory part. Then the COGS wont show
Enjoy your videos, especial when you continue to tape while something goes wrong (QBO hiccup), It is good to know that I am not the only one. I am also a CPA and long time desk stop user (1995!). Do you recommend establishing a sub account to the inventory asset account to track similar components. I do understand that this can easily overwhelm the chart of accounts, but would like your opinion please. Thank you and much peace.
I like separating the inventory yes
Excellent video as always, Hector! Question: you mentioned at the end of the video that the process that you discussed is different than manufacturing with inventory assemblies. Could the methods that you showed in this video still be a workaround for an inventory assemblies process in QBO since QBO doesn't have this feature (the feature is only available in QB Desktop)?
QBO cannot do manufacturing… you need to add an app like SOS inventory
How to deal with Manufacturing goods like coffee , where raw materials quantity reduces while it reach the final product ?
QB online doesn’t handle manufacturing.
Great Video!! I have a question: Example, I bought 100 chairs the cost me in 2020 $50 each, when I Run my Inventory summary to see how much I have in Inventory it says $5000, than I bought another 50 pieces and added on inventory but cost me $60 now. If I run the inventory it shows $7500, in those new 50 pieces how can I change the start price to $60 without touching my old inventory that I bought it for $50?
I have the same question too. Hopefully it can be answered. QB don’t have function that can manage inventory with different cost in different period. New cost will alter the old price.
Thanks for such valuable guidance. Can you please create a video on QuickBooks online for restaurant/bakers?
Probably will not happen. Not my specialty
Hi, Can 1 customer pay in multiple currencies in QBO to settle his/her debts
No.. you would need to adjust via Journal entry
How would you manage the inventory if you owner finance to the buyer?
Thats a complex question. No sure how to answer that
6.6.21 Nice video Hector. Gets a person thinking on how to do the transactions. Thanks
Yeap.
Hi Hector, I own a bar and I would like to know how do I keep inventory of my liquor bottle. As I don't only sell bottles but mostly a shot out of a bottle. How do I record that I QBO?
You need a POS system for that. QBO is not ideal for managing inventory is restaurants or bars
@@HectorGarciaCPA thanks for your fast reply. And what if I would like to use QBO for creating PO's and also viewing my sales per product and not for keeping track of my inventory amount. Then I should create all my sell items as 'Non-inventory items'?
Afcource you can do that, all you have to do is When you enter your inventory Items enter it as Liters or Oz and when you sell it to customers use the same measure method
QBO support suggested to watch your videos!
I wonder if there’s any way to sell existing inventory item in parts. We purchased it with price in whole, but would like to break down prices to a couple of components to sell. I can’t seem to find a way to change inventory to another product.
I would appreciate your input.
You would need to use an inventory adjustment. Reduce the one you dissembled and increase the new “pieces”
Can this apply to custom charges with stock items more than 1 item which are different?
No
Hi Hector, thank you for this great video. Do you have the same video on QB enterprise? we are manufacturing plant using QBO and KatanaMRP. I want to allocate insurance and shipping for all items that are procured from abroad.
Katana will manage that in its own very different way.
With enterprise, i have a complete 16 hour series on manufacturing and inventory management
What is the impact on bank account & vendor Account?
None
Wouldn't it be easier to just start with a product and add the recon to that?
Depends on the situation
Hi can you show me how to manage inventory in QuickBooks online for not for profit organization that is not for sale
Its the same as any other business
Thank you so much.
Hi Sir. What can I do if I want to use QuickBooks online but I want to apply weighted average costing for inventory.
Cant
@@HectorGarciaCPA Thank you, Sir!
Why don't you use classes? Wouldn't that be easier? How about retail deals that are being financed and have doc fees, taxes , and all the other fees?
It would.. but with QBO plus you are limited to 40 classes
Thank you!!! Great solution!
Omg lo que estaba buscando hace tiempo, gracias por el video
Perfecto
Hola, tengo una pregunta, cuando hago el invoice debo cobrar el sale tax? en mi caso la compania no es un dealer, es una s corp que hace servicio, renta y vende vehiculos, gracias de antemano@@HectorGarciaCPA
@@bangelb3 si vendes carros al
Publico.. tienes que cobrar sales tax
gracias por responder, la venta de carros es muy poca porque no tiene licencia de dealer, el cliente al momento de registrar el vehiculo como hace para no pagar el sale tax nuevamente@@HectorGarciaCPA
@@bangelb3 ya la pregunta es muy especifica, disculpa. Habla con un contador local
I need help i cant figure it out
If you want to hire a consultant from my office call 954-414-1524
Thank you for this video!!!
Karina Gonzalez you welcome
Buenas tardes ,por favor podrias hacer algun video en español igualito al de este video? muchas gracias.
Mi canal es en ingles 100% - es mucho trabajo hacer el trabajo doble, pero puedes prender los captions
Ok, muchas gracias
Great Video :)
Very complicated this video.
Oh yea... welcome to accounting
JesiunJoby
WHAT NONSENSE YOU ARE GIVING THE TRAINING OF RESHAPING INVENTORY. IF QUICKBOOK DO NOT GIVE THIS FACILITYIN THE SOFTWARE WHY YOU ARE PUTTING YOUR ILLOGICAL IDEAS
You are right, I’ll take the video down.