QuickBooks for Mac 2014 User’s Guide 186
Setting up inventory
Now that you’ve got an overview of how inventory works, thanks to Hannah and her shop, let’s take a look at the
details of each part of managing your inventory. Here's what you need to know to set up inventory in QuickBooks.
Turn on inventory tracking
Before you can start tracking inventory, you need to turn on inventory tracking.
To turn inventory tracking on:
1 Choose QuickBooks > Preferences, and then click Inventory.
2 Select the “Inventory and purchase orders are active” checkbox. Before you can start tracking
inventory, you need to turn on inventory tracking.
To turn inventory tracking on:
• Choose QuickBooks > Preferences, and then click Inventory.
• Select the “Inventory and purchase orders are active” checkbox.
Set up accounts for inventory
You need at least one each of the following types of accounts in your chart of accounts to track inventory.
Use this account to track the current value of your
inventory. If you want, you can set up subaccounts within
this account to track the value of different types of
inventory.
Use this account to track the income from the resale of
inventory items. If you want, you can set up subaccounts
within this account to track the income from different
types of inventory.
Use this account to track the cost to you of the items you
have sold. If you want, you can set up subaccounts within
this account to track the costs for different types of
inventory sold. On a profit and loss report, QuickBooks
subtracts the total cost of goods sold from your total
income to provide a gross profit before expenses.
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