You've turned on Advanced Inventory for this company file. You must complete the steps below for quantity on hand by site to be correct.
Intuit recommends 6 steps to setup Advanced Inventory correctly. For best results, perform the solutions in order shown.
The first step to track multiple inventory sites is to tell QuickBooks Desktop where you track inventory. These locations are called sites. Sites can be actual warehouses with different addresses, trucks, piles, staging areas, or any other locations—large or small—where you want to track inventory quantities.
To do this task
Repeat the process until you set up all your sites.
When you have completed this step, you are ready to move to step 2—How to switch from another method of tracking multiple inventory sites (optional)
If step 2 doesn't apply (you didn't use another method to track multiple inventory sites), you can move to step 3—Set reorder points for each site
You may currently use a different method (with QuickBooks Desktop or different software) to track multiple inventory sites. Before you use multiple inventory sites, you need to ensure that your inventory numbers are correct so you can easily transition to using Advanced Inventory.
How do you switch from your method? Find your current method in the following list and expand the topic to see detailed instructions. If you don't see your method, look at "You use another method."
With this method, you use different software to track how much inventory you have at each site.
To switch to the Advanced Inventory method:
Using your other software, run a report to identify the quantity on hand at each site
If you don't have your inventory items set up in QuickBooks, learn how to set up inventory.
With this method, you use a naming method or structure to distinguish between items at different sites. For example, if you have 3 warehouses, you use 3 items to represent the same item located at each warehouse.
If you use this method, follow these steps to switch to the Advanced Inventory method:
Important: These steps are complicated and require good working knowledge of QuickBooks Desktop. Consider getting help from a QuickBooks ProAdvisor or your accounting professional.
Calculate the quantity on hand (QOH) for each item at each site. You should also know the global QOH (the total quantity across all sites). Write these numbers down or print a report from QuickBooks Desktop.
"Clean up" your item list. The goal is to have only one item on the list for each item you sell.
Decide which items to use in the future. Remember that you only need one item in QuickBooks Desktop. In the example above, suppose you choose WH1 Widget 1.
Adjust the quantities to zero for the redundant items you won't use. Then make the corresponding increase for the item that you will use. In the example:
Decrease the QOH for WH2 Widget 1 from 20 to 0.
Decrease the QOH for WH3 Widget 1 from 40 to 0.
Increase the QOH for WH1 Widget 1 from 100 to 160.
Note: After making all adjustments, the net effect on the adjustment account should be zero. However, if each item that represents the same item at different locations has different average costs, the net effect won't be zero. There are 2 ways to handle this problem. If:
the value differences are small:
Talk to your accounting professional. If the value differences are small create a special inventory adjustment account for this transaction, and make your adjustment. Then have your accounting professional write off this amount.
the value differences are significant:
Important: You can also merge redundant items. However, if you merge items, you lose any historical information about sites/locations.
With this method, you use classes to represent each site or location. Then you classify inventory purchase and sales transactions.
Switching from this method is easy. Simply stop using this method, and follow these steps:
Calculate the quantity on hand (QOH) at each site.
"Clean up" your item list:
You should have one inventory part or assembly part item set up in QuickBooks to match each inventory part you buy or sell.
This inventory part should accurately reflect the global (across all sites) QOH for that item.
Important: Advanced Inventory doesn't classify income and expenses. It only tracks inventory. You should still use class tracking to classify noninventory-related income and expenses at different locations.
If you used a different method to track multiple inventory sites, be sure to:
Figure out the quantity on hand (QOH) at each site.
(Optional) If your current method uses an item list, you must first clean up your item list:
You should have one inventory part or assembly part item set up in QuickBooks Desktop to match each inventory part you buy or sell.
With Advanced Inventory, you can track site-specific reorder points for each item. This means you can have a different reorder point for each site, and QuickBooks Desktop can warn you when you're running low at a specific site.
Important: Site reorder points don't "roll up" (add up) to calculate a global reorder point. You must set the global reorder point for each item.
Choose Lists > Inventory Site List.
Click the Activities drop-down arrow and select Set Reorder Points.
Click the Set reorder point for site drop-down arrow and select the site you want to set a reorder point for.
In the Site Reorder Point column, enter the reorder point for each item.
To set reorder points for other sites, click the Set reorder point for drop-down arrow and select another site. Then repeat the process.
When you turned on Advanced Inventory, QuickBooks Desktop prompted you to begin with a single, temporary starting site. Consequently, QuickBooks Desktop shows that your entire inventory is stored at one location.
Now you may be ready to transfer your inventory from the starting site to their actual sites. To do this step, you need current inventory counts for each site.
To enter a new transfer for each site:
Choose Vendors > Inventory Activities > Transfer Inventory.
In the Date field, enter the date of the transfer. This can be the date you begin tracking multiple sites.
In the Reference No. field, enter the appropriate transfer number. We recommend "setup1," "setup2," and so on for these transfers.
Click the Transfer from drop-down arrow and select your temporary inventory site.
Click the To drop-down arrow and select the actual inventory site.
Select the inventory items to transfer to the site:
To select individual items:
Click in the Item column.
Click the drop-down arrow and select an inventory item.
(Optional) In the Memo field, enter the reason for this transfer such as "Transfer opening quantity to site."
(Optional) Click Print to print a copy of the transfer for your records.
Click the Save & New button.
Repeat these steps for each inventory site.
When finished, click the Save & Close button.
If you want to transfer the same items to multiple sites, you can save time by duplicating the inventory transfer:
Click Previous until you find the transfer you want to duplicate.
Choose Edit > Duplicate Inventory Transfer.
Change the details of the transfer as necessary.
(Optional) Repeat these steps for each inventory site.
A site column appears on all forms (invoices, purchase orders, and so on) you see onscreen. However, this column doesn't appear when you print the form.
This could be a problem if:
You need to print the site on internal documents such as picker lists or work orders.
Your customers need to know the site.
Learn to add the site to forms.
This final step is only necessary if you have memorized transactions that include inventory part items. If so, you should edit the memorized transactions to enter the site information.
How to edit memorized transactions