To do this task
Only the QuickBooks Administrator can do this task.
Open the items and inventory preferences.
Go to the Edit menu and click Preferences.
In the list at the left of the Preferences window, click Items & Inventory.
In the list at the left of the Preferences window, click Items & Stock.
Click the Company Preferences tab.
Make sure the Inventory and purchase orders are active checkbox
(Optional) Select the Quantity reserved for Pending Builds checkbox if you want this quantity deducted before showing the available quantity.
(Optional) Select the Quantity on Sales Orders checkbox if you want this quantity deducted before showing the available quantity.
(Optional) If you want to be warned each time you try to sell more of an item than you currently have in inventory, select the Warn if not enough inventory to sell checkbox and then click one of the following:
When the quantity I want to sell exceeds the Quantity On Hand
When the quantity I want to sell exceeds the Quantity Available
If Advanced Inventory is turned on, select Also warn per inventory site. (Advanced Inventory is only available in Enterprise Solutions. Additional fees may apply. For more information go to www.qbes.com/inventory.
Quantity on hand vs. quantity available
The quantity on hand is simply the number of an item that you have in inventory. The quantity available is the quantity on hand minus the quantity on pending builds (if selected in step 3 above) and the quantity on sales orders (if selected in step 4 above).