![]() ![]() Double-check that you’ve entered the correct cost for your goods. You might get an incorrect value on your COGS account for a few different reasons. It’s also a good idea to double-check your inventory, in this case, to see if you need to reorder anything. This tells QuickBooks that the items are on the way. You can usually fix negative inventory in QuickBooks by converting open purchase orders to bills. Negative inventory can occur when you sell more products than you actually have available in your inventory. Incorrect inventory asset accountĭouble-check that the Income account used for the item has the account type Other Current Asset, as well as the detail type Inventory. Let’s quickly go over some of the common QuickBooks inventory asset account problems you might encounter and see how to fix them. How to fix common QuickBooks inventory asset account problems This can make reordering a little easier in the future.Īnd you’re set! Just repeat the steps for your other inventory items to set them up. You can also select your Preferred supplier for the item if you have one.Select Cost of Sales from the Expense account dropdown menu.You can change this later if you need when buying supplies. Fill in what you normally pay for the item in the Cost section.The information you fill in here will show up on forms and invoices you send to suppliers. Fill in your product description in the Purchasing information field.QuickBooks will set up an income account for you, but you can change it if you wish. This will be the account QuickBooks uses to track the income from the items whenever you sell them. Select your income account from the dropdown menu.This is what you will charge the customers when you sell the item. This will show up on forms you send to customers, such as sales receipts and invoices. ![]() Enter your product description in the Description field.You can do this by following the steps below: This account is set up by QuickBooks for you automatically, but if you want to, you can change it.Īfter this is done, you can continue setting up your product’s description, sales and purchasing info, and tax. Go to Inventory Asset Account and set it to Inventory Asset.QuickBooks will send you a warning to order more if the quantity of your inventory item falls to the reorder point. The number you enter here will serve as the lowest number of an inventory item you want to have on hand before you wish to order more. Fill in the Quantity at Hand for your product (note: you should do a physical count of your inventory before this, as changing the initial quantity later can cause some accounting errors).Select the category from the Category dropdown menu.Go to the Unit dropdown menu and select the unit.You can also set the SKU ( stock keeping unit) code for your product to help you track your product later on. The account type and detail type categories was compiled from QuickBooks Online Simple Start on 5/15/22. Account CategoryĬomplete List of QuickBooks Account/Detail TypesĪ complete list of QuickBooks' available Account Types and Detail Types is tabulated below. The 15 Account Types in QuickBooks can be mapped onto the broader Account Categories as shown below. Each new account is required to have an Account Type and Detail Type selected. ![]() Each Detail Type is mapped to a single Account Type. There are 15 available Account Types and 154 Detail Types. In QuickBooks Simple Start the options in these two fields are not editable. QuickBooks Account Types and Detail TypesĮach Account in a QuickBooks “Chart of Accounts” has an Account Type and Detail Type. IE: Non-operating income like capital losses ![]() IE: Non-operating income like capital gains, interest income IE: Overhead Expenses, Operating Expenses IE: Shareholders' equity, book value, net asset value The 10 Account Categories below are one possible way of categorizing accounts. A common best-practice is to number the accounts in a Chart of Accounts using number ranges similar to those below. ![]()
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