QuickBooks Pro Plus desktop 2022 inventory reports Get ready because we bookkeeping pros are moving up the hill top with QuickBooks Pro desktop 2022. Here we are in our free QuickBooks sample file sample Rockcastle construction going through the setup process with a view drop down the open windows list on the left hand side company drop down home page in the middle, maximize in that home page opening up our major two financial statement reports reports drop down company and financial first balance sheet standard report going to take that thought up to 14 customizing the report fonts and numbers change that font to 14.
And okay. Yes, please. Okay. Same for the P and L reports drop down company and financial profit and loss P and L Income Statement customizing the report fonts and the numbers font change, please to what 14? Okay, yes, please. Okay, there’s our starting point. Once again, this time focusing in on inventory. Let’s go on back to the balance sheet to do so because that’s going to be an item on the balance sheet changing the date up top customizing the reports one more time range of Oh 101. Let’s make it 1230 12 Oh 123 to 1230 123. And run that report.
So that when we drill down on it, we have the detail for that month, and we’re looking at the inventory line items. So we’re tracking inventory within the QuickBooks system. If we’re tracking inventory within the QuickBooks system, we want to know not only what the inventory total is in dollar amounts on the balance sheet, but also what type of inventory we have the units that we have the number of those units that we have as well.
To do that, we need the sub ledger reports that we’ll take a look at at this point in time, remembering that if you are tracking inventory, or if you have inventory, you could conceive other methods that you might basically track inventory, you might be using something outside of QuickBooks, for example, to give sub Ledger’s to track the inventory that you have, and then entering the data into say, the QuickBooks system. If you’re tracking however, the items unit items within QuickBooks you will be doing so by setting up those items, as we looked at in the past.
And we’ll look at in more detail when we get up to setting up the new company files. And if you’re using the standard QuickBooks Desktop, you’ll be using then the weighted average method in terms of a flow assumption. To do that, let’s say that in will, and that’s a whole kind of topic in and of itself, what what are the different flow assumptions FIFO LIFO, weighted average specific identification, but that’s the general idea.
So we have other reports that are going to supplement this in a similar way as we had with the accounts receivable and the accounts payable, given more detail about this account, to find those, we could go to the reports drop down, we could then go to the inventory. And then if we knew which ones we’re looking for, we could just select them, this would probably be the fastest way to go. But here now we’re going to go to the reports, center reports drop down reports center, let’s maximize that report. Because it always does that little on maximizing thing for some reason, which is kind of annoying, but that’s okay.
inventory on the left hand side, we got our two main reports up top that being the inventory valuation summary inventory valuation detail, let’s run the summary report. There we haven’t it’s as of a point in time, so we could change the date up top to 1230 123. So I’ve closed the window on the left hand side, so we could see that in a bit more detail. So it looks a little bit like an intimidating type of report. But it’s not too bad. Once you get a handle on it. Obviously, it’s an easier report to read as well, when you’re using your own business. And you know what these inventory items are you set up the inventory items.
Also, this being a job cost system, which is can be a little bit more complex to follow as well. But in general, we got the information we got what’s on hand, we’ve got the average cost, the asset value, the percent of total assets, the sales price retail, and the percent of total retail on the right. So typically, we’ll be looking here in terms of a sub ledger in terms of the units on hand. The units on hand are things that we do not see on the financial statements, because we’re only looking at the dollar amount,
we got the average cost and the average cost is what we’re typically going to be using with regards to how we’re tracking the inventory within the desktop version by default given the fact that they use a weighted average flow assumption meaning that as prices change and fluctuate for the same unit or thing that we are looking at the same inventory item, then we’re going to be basically kind of waiting doing a weighted average. When we think about the costs of the units that we have, instead of using a first in first out kind of are lastin first out flow assumption.
In other words, we’re not going to be assuming that all of our units have different prices, when prices go up for the same unit, but rather, we’ll try to kind of average out what the price will be. That’s getting, that’s the general idea. So then we get the asset value, this adds up down below for the total assets for the inventory items listed by item, including the cabinets. So we got the total cabinets, the hardware, and the wood doors, and so on adding up to the 30,006 8338. Let’s maximize this and check out what we got on the balance sheet. On the balance sheet, we got the 30,006 8338.
So it does match out. Note that you’re more likely to have it not match between this report and these and the sub reports here, then you are would say the accounts receivable, or the accounts payable due to the fact that whenever you post something to accounts receivable or accounts payable in QuickBooks, they actually force you to give either a customer or vendor or respectively customer and vendor for receivable and payable, so that they can make sure that the sub ledgers the reports by customer and reports by vendor tie out to what’s on the balance sheet.
However, when you deal with the inventory, although you usually enter the inventory with a sales receipt or an invoice, and you use an item to do so, therefore, the tracking will be in place, it’s possible to record something to the inventory account without having to support an item or more possible at least. And that could throw off if you do that, that will throw off what is on your balance sheet to what’s on your sub reports. And you got to you got to be careful with that kind of thing when you’re tracking inventory in the in QuickBooks.
So then that’s going to that’s going to give us your cost side of things. That’s typically what we think about when you when you track the items in QuickBooks. But when we set up the inventory items, we also give them the sales price. In other words, when I set up an inventory item, we’ll talk about this later more. But let’s just take a look at it. Now. If I go to the items list, and if I was to set up an inventory item, we could just check out inventory item, possibly inventory item, here’s one, and I’m just gonna check it and edit that item.
Then the cost is over here, what we purchased them for, and then we’d have the sales price. This one they had a zero on the sales price, but we have the sales price over here. That’s how the system could know you know what we’re selling these items for. So we can, we could track both the cost, which should tie out to what’s on the balance sheet, and give us that added information back to the inventory valuation summary reports. And give us some information on the sales price.
So that we get basically our sales price item here with the retail items, this doesn’t tie out to anything, because we haven’t yet sold them. So they’re not on the income statement or anything yet, that’s what we plan on selling them for. That’s what we expect the retail price will be summary, meaning what we could sell them for, we don’t put them on the books for the retail price, we put it on the books for what we purchased it for, because that’s the value to us.
That’s what we actually bought the things for. And so that’s what it’s on the books at but we have that retail price as well. And then you can get the percentages of the totals that are running on the right hand side, let’s pull up the trusty calculator. Just to see that in a bit more detail. calculator, we need you, we need you calculator. So there it is, we’re gonna say then these percentages are going to be something like taking that the 10 794 divided by the total, which is the 24 454.
And moving the decimal two places over so you can see the percentage of the total same thing on the valuation. For the cost side, taking, for example, the 9000 divided by the 3068 3.38, moving the decimal two places over 29.33% About Alright, let’s go back. That’s the main report you’ll probably be working with. If we go back to the Report Center. However, we also have the inventory valuation detail. Let’s check it out. So we can see what it says. So take that from 12 one to 1230 123.
So we got the detail of this report, of course giving our inventory items and then the detail within them, which includes the invoices when that’s the invoices are going to be representing decreases possibly to the inventory amount. And then we would have the increases which could be represented say with bills as we see the activity types of reports on on the more detailed reports back to the Report Center. And so those are the probably the main reports we would take a look at the inventory stock status you can take Look at the inventory stock status running that report.
And so then we’re going to see, let’s close the item on the left hand side, this gives our inventory items, the preferred vendor down below gets the preferred vendor who we typically purchase from the reorder point, which could be a crucial point, if we’re trying to figure out you know what point at which we’re going to reorder the inventory items, the max, the on hand items, the you m unit of measure, order, the P O, the reorder quantity, and the next delivery and the sales at slash weak, you can customize these reports if some of these columns are not applicable to you, you can go to the Customize up top, and then you’ve got your columns and filters down here.
So if this was not applicable, for example, you can remove it thusly. Or you could just basically take this item and remove it like that, you can add them back in customizing the reports, adding those items, say back in with the checkbox. And there we have that let’s open this back up again, going back to the Report Center, and then we got the inventory stock status by vendor. So the stock status by vendor running that report, breaking out the information now by basically who we purchase from the who we buy the inventory from by vendor similar types of information by vendor.
Going back to the Report Center again, we’re going to then say we got the physical inventory worksheet. So this could be a worksheet for us to give us basically a double check of our inventory. So our inventory is being tracked. Now, with a with a flow assumption, which is a weighted average flow assumption. That means that it’s a perpetual inventory system that we’re using, meaning it’s going up every time you know, we buy the inventory, we increase it and then when we sell the inventory with the sales receipt or invoice, those two documents are automatically decreasing the inventory as we go, it’s not requiring us then to physically you know, decrease them in our books.
But we still want to of course, track them to the physical inventory and port to be tracking if there’s any shrinkage, or any spoilage it kind of stuff to see that our inventory is is accurate. So we would want possibly, we can then print out a physical worksheet count worksheet, and then do a comparison between the physical count and what is in QuickBooks. Obviously, when we do the physical count, if we had somebody else do the physical count one internal control would be not to give them the number that is on hand in the system so that they do a physical count.
And then we can take and tie them out to what we have in the system with our perpetual inventory system to see if there’s any kind of problem, possibly any shrinkage or spoilage. Going back to the Report Center. Again, we got the pending bills, this might be something more applicable if we were making the inventory instead of just purchasing marking up the inventory as well. So those are the major inventory reports. Remember, of course that going back to the balance sheet.
Most of these reports pretty much all reports other than the balance sheet in the income statement, as is the inventory reports are in essence supplementing a line item on one of the major financial statement reports this would be an inventory inventory on the financial statements broken out are given in terms of dollars. We also want to see the supporting units in place and the unit cost and so on