Entering Physical Inventory in QuickBooks

QuickBooks is a versatile software that not only streamlines financial tasks but also helps businesses keep track of other crucial activities, such as inventory management and payroll processing. The software provides users with features and tools that make stock management and product manufacturing a hassle-free experience. QuickBooks even simplifies Electronic Data Interchange (EDI) with its professional tools.

Intuit, the parent company of QuickBooks, has further enhanced the software's capabilities by integrating a smart search tool that improves user efficiency by processing their search history and preferences. QuickBooks stands out from other expensive software options by providing industry-specific solutions that meet the basic needs of each industry with prompt response. The software is adept at handling both financial and stock-related tasks.

Prerequisites

Before entering physical inventory in QuickBooks, ensure that you have an active QuickBooks Point of Sale Software subscription.

Recording Physical Inventory in QuickBooks

To record details regarding physical inventory, follow these steps:

1. Open the software and locate the Inventory option.

2. Select the tab to open the Inventory menu.

3. Under the new menu, locate and click on Physical Inventory.

4. Scan all the inventory items using a barcode scanner, which is the best system for registering and recording stock items directly within the software, including quantity details. Each item has a unique barcode that QuickBooks POS identifies to automatically input all data.

   • If you don't have a barcode scanner, you can purchase one separately from Intuit.
   • Alternatively, you can manually enter physical inventory details, although this process is lengthier and more prone to errors.

5. To manually enter data, locate and click on the tab called 'Add Counts by Hand' or 'Entering Counts Directly'.

   • If you're using a barcode scanner, upload the collected data to the POS system by following these steps:
     1. Integrate the scanner with the Point of Sale software using a USB cable.
     2. Turn the scanner switch on.
     3. Start the Point of Sale Software and locate the Inventory menu, followed by the Physical Inventory option.
     4. From the options under scanner, select the tab labeled Add Counts and follow the instructions on the window to complete the process.
     5. If you wish to avoid the problem of double entry, clear the memory data stored within the software once the details have been uploaded to the system.

6. After entering the data manually or otherwise, analyze the stored data and view the summary. Check the item count to avoid any discrepancies.

7. Once you've verified that the data is correctly entered, close the process by selecting Save and Close tabs.

QuickBooks automatically saves data while users enter items and counts to ensure that data is not lost even if the software crashes. You can pause the task or close QuickBooks and edit the physical inventory later. QuickBooks Point of Sale informs users about similar transactions or double entries of items. Use the Clear Counts and Restart option to clear the item count record, and QuickBooks will refresh, allowing you to initiate counting again.

Adding Counts by Hand

To manually enter counts and items in QuickBooks Point of Sale, follow these steps:

1. Open the software and locate the Inventory menu.
2. Under the new menu, click on the Physical inventory tab.
3. Select the Add Counts by Hand option.
4. Choose one of the two tabs based on your requirement:
   • Go to Quantity Field: This option circles through the selected item and performs a count function whenever you press the Enter button. Enter item details and counts, press Enter, and then press Enter again to repeat the process.
   • Add item: In this option, analyze and enter the names of the items already added. Only the Name and Number fields need to be filled in this category. QuickBooks completes the rest of the process after multiple entries of each item are made.
5. Start entering the items and let QuickBooks do the rest of the work.
6. Click on Save and then Exit.

Although this method isn't as fast as entering physical inventory through a barcode scanner, it is the fastest alternative available to QuickBooks Point of Sale users. Users who have selected the 'Add Item' method can also make changes and edit counts while typing in data. A delete option is provided alongside each individual item.

Editing Counts Directly

By choosing this option, users can create the entire inventory list by manually entering both counts and items. This isn't a viable option for recording a large amount of data. To edit counts directly, follow these steps:

1. Open the Inventory menu, and from the drop-down list, select Physical inventory.

2. Enter inventory items and counts, then use the following functionalities to group and organize items:

   a) Filtering: QuickBooks Point of Sale allows users to add item names and counts in multiple fields. These fields are then united with the filtering option, and the software automatically organizes data according to the selected filters. There are multiple filters provided for making searches easier. Users can also filter items based on count. To create custom filters in QB POS:

   1. Locate and click on the Create a Custom Filter tab.
   2. Select the values you want to use or enter custom attributes as filtering options.
   3. Click on Apply and Save. Use these custom filters while organizing or grouping items in QuickBooks Point of Sale.

   b) Sorting: Sorting options can be used to arrange items based on filters. Click on the arrows provided beside column fields to sort data. You can also edit the filter applied while sorting data. Data can be easily sorted based on count or date added. Additionally, you can display entire data by sorting it according to name, type, or any other identifier. Select particular columns before scrolling and viewing the data. Data can only be viewed for a single column at a time.

3. Click on Save and Close.

Once the data is entered, select the preview tab to check for any mistakes. Manual data entry can increase the scope of inaccuracies and unwanted imbalances.

Integrating QuickBooks Desktop with QuickBooks Point of Sale

Users can swiftly integrate QuickBooks Desktop with QuickBooks Point of Sale software. Data is automatically synchronized between the two software. To link both software together, users need an active subscription for both. Once connected, data is synced in real-time. Connectivity issues do not impact the functionality of either software if they have been hosted on servers. Additionally, you can use the data synced to QB Desktop to create multiple reports and analyze physical inventory.

An electronic data interchange can be created across the entire organization by giving multiple users across departments access to view the Physical Inventory list and count. This eliminates the need to purchase separate software for managing inventory.

FAQ

Q: Can I pause the physical inventory process and resume later?
A: Yes, QuickBooks automatically saves data while you enter items and counts. You can pause the task or close QuickBooks and edit the physical inventory later.

Q: How can I avoid double entries while entering physical inventory?
A: QuickBooks Point of Sale informs users about similar transactions or double entries of items. Use the Clear Counts and Restart option to clear the item count record, and QuickBooks will refresh, allowing you to initiate counting again.

Q: Is it necessary to have a barcode scanner to enter physical inventory in QuickBooks?
A: No, while a barcode scanner is the most efficient method, you can also manually enter physical inventory details using the Add Counts by Hand or Entering Counts Directly options.

Q: Can I integrate QuickBooks Desktop with QuickBooks Point of Sale?
A: Yes, you can swiftly integrate QuickBooks Desktop with QuickBooks Point of Sale software. Data is automatically synchronized between the two software, provided you have an active subscription for both.

By following the steps outlined above, users can easily enter, add, and edit Physical Inventory details within QuickBooks without any loss of time or hindrance. If you encounter any issues, it is advisable to seek assistance from the knowledgeable QuickBooks expert team set up by Intuit or connect with the live chat option on our website – QuickBooksNumber.Support.