For a particular item, the quantity on hand is the number of items you
currently have in stock. QuickBooks automatically keeps track of this number for all the inventory items in your Item List. QuickBooks can also track the number of items at different sites with the Advanced Inventory add-on which is only available in QuickBooks Enterprise Solutions (additional fees may apply). Learn more at www.qbes.com/inventory.
It increases when you purchase new inventory or receive items you ordered
through a purchase order. For example, if you have 30 faucets on hand and then
discover that you need 20 more, QuickBooks increases the quantity on hand to 50
when you indicate that you have received the 20 faucets—either by
entering an item receipt or bill for the faucets, or by paying for the faucets
directly with a check or credit card.
It decreases when you sell items by writing an invoice or entering a sales
receipt, or when you make an inventory adjustment to account for theft or
damage. For example, if you have 50 faucets and then sell 30 of them,
QuickBooks decreases the quantity on hand to 20.