To manage inventory accurately in QuickBooks Online (QBO) during periods when products are ordered but not yet received, you can follow several important steps:
Enter a Purchase Order: Begin by creating a Purchase Order (PO) in QBO as soon as you place an order with your supplier. This acts as a formal record that signifies a commitment to purchase goods and helps you track pending arrivals. POs do not affect inventory quantities or financial reports until the items are received.
Record Against Open PO: Once the inventory arrives, use the “Receive Inventory” feature to record the items against the open PO. This ensures that your inventory count and your Accounting reflect the actual goods on hand.
Track in a Separate Account: If you frequently deal with extended delivery times, consider setting up a ‘Goods in Transit’ account. Record the PO value in this account to track what inventory you are expecting. Transfer the value from this account to inventory once the goods physically arrive.
Frequent Updates: Regularly update POs and other records to reflect any changes or cancellations. Maintain communication with suppliers for accurate delivery estimates.
Adjustments for Accuracy: If discrepancies arise after goods are received, use the Inventory Quantity Adjustment function in QBO to correct inventory levels while documenting the reason for adjustments.
Regular Inventory Checks: Conduct frequent physical counts of your inventory and compare these counts with your QBO data. This will help identify any disparities early and keep your records accurate.
Automated Alerts and Reminders: Set up alerts or use a project management tool to remind you of incoming deliveries and when to expect them, ensuring you and your team are aware of pending actions.
Following these practices will help ensure you maintain an accurate inventory count, balancing your records with physical stock and Accounting for delays in receipt of goods.
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