UPDATED 09/03/2019

What QuickBooks Enterprise can do with Inventory (as of version 2020):

  • Track Inventory Parts and Inventory Assemblies (Bill of Materials)
  • Build sub-assemblies (Inventory Assemblies within other Inventory Assemblies)
  • Track Multiple Units of measure
  • Track Backorders with Sales Orders
  • Track Item Receipts separately than Bills with Enhanced Inventory Receiving
  • Prevent users from selling inventory not in stock (Negative Inventory)
  • Track Minimum and Maximum desired inventory levels
  • Track up to 12 custom fields on items
  • Assign a default class to an item
  • Track Inventory in multiple locations
  • Track Inventory in bin locations within the warehouse
  • Use FIFO Inventory costing method
  • Track Inventory with Serial Numbers or Lot Numbers
  • Basic USB Compatible Barcode scanning in transactions such as Sales Receipts, Invoices, and Item Receipts
  • Basic Mobile (Android Phone) Pick/Pack/Ship Solution
  • Track a preferred vendor per item and up to 4 alternative vendors
  • Track Vendor Part Number, in addition to Manufacturer’s part number
  • Allocated Landed Cost (from other bills that contain shipping, customs, insurance, etc.) into inventory item cost
  • Mobile (Android) based cycle counts
  • Mobile (Android) PO receiving
  • Advanced Pricing of items based on multiple criteria (Customer Type, Date, and Volume Sold)

What QuickBooks Enterprise CANNOT do with Inventory (as of version 2020):

  • Track lead time functionally, although the lead time can be stored in the preferred/alternate vendor table
  • Both Serial Number AND Lot Numbers
  • Serial number controls. While QuickBooks can track serial numbers, it cannot prevent a user from choosing the wrong one or leaving a serial number out of the transaction.
  • Unlimited Serial Numbers in a single line: there is a limit of 4096 characters in a single item line, so you would be limited to the qty of serialized items you can enter in a transaction line when you multiply QTY X Serial Number character length.  Workaround is to use multiple transaction lines
  • Track Expiration Dates (Lot Numbers could be used as workaround)
  • Inventory Forecasting Reports
  • Proactive notifications of Inventory Levels
  • Inventory Categories or Grouping (other than using sub-items or classes)
  • Barcode scanning for inventory adjustments
  • Individual FIFO layers per Lot
  • Specific Cost Identification with Serial Numbered products
  • Create Assemblies from Sales orders
  • Track different costs for an item across multiple vendors
  • Track volume discounts on purchases
  • Inventory Matrixes (style grids)
  • Product Alternatives (substitute product)
  • Restrict user to sell product at specific price, price range, or above cost
  • Accounting for scrap during manufacturing process
  • Non-Sellable site location (like in-transit locations)
  • Prevent QuickBooks user from lowering the price of an item or staying within a target margin rate

 

Whenever I do an implementation consultation with clients, trying to decide if QuickBooks is the right solution for their inventory-based business, these are the type of questions I ask:

  • On a scale from 1-10, how confident are you on your current accounting system’s valuation of inventory?
  • What is the margin of error from your current Inventory Valuation report?
  • Do you sell “online”; through a website, or other web-based channels like Amazon or eBay?
  • Do you feel that the right products are being inventoried? (Other words, are there items that are “non-inventory” in nature, but being tracked as inventory or vice-versa?)
  • When was your last complete physical inventory done? How often are they done?
  • Do you perform segmented cycle counts? (In other words, counting a small group of sku’s in a cyclical basis)
  • Do you ever do VALUE adjustments (this is different that usual QUANTITY adjustments)
  • Do you use unique (internally created) part numbers or do you use the vendor/manufacturer’s part number? (or both?)
  • Do you sell custom and/or unique items that a are only sold once in a lifetime (for a specific customer or job)?
  • If you were to classify your inventory in groups, what would those groups be? (for example: Shirts, Pants, Shoes, etc…)
  • Do you have a pre-designated space in the warehouse for every product? (such as cages, racks, or bins, that are uniquely numbered)
  • How many people perform activities that can affect your inventory? (for example, anyone that creates a sales order and/or promises the customer a product, anyone that creates purchase orders, anyone that receives inventory and/or signs off on the fact they were received, anyone that creates vendor bills from inventory purchases, and any allows to move product in/out of the warehouse for any reason…)
  • If there are multiple people, please tell me what would you like the desired responsibilities and access restrictions to each of these people that are affecting the inventory.
  • How often do you take product out of the warehouse for “giveaways”, samples, and/or internal consumption that are not necessary “sold”?
  • Are there multiple warehouse locations? And do you have inventory in consignment (physically under the position of your customer, but they belong to you until they are sold)?
  • Do all your products come with barcodes from the vendor/manufacturer? And/or do you manually add barcodes to the packaging?
  • Do you have product with lot numbers and/or serial numbers? Do you have product that expires?
  • Do you track raw materials separate than finished goods? Do you track Work in Process for partially processed raw materials?
  • Does the cost of the product vary greatly throughout the year? Do you have any thoughts around the value of using “First-In First-Out” inventory, rather than avg. costing?
  • Do your customer pick-up the product from your warehouse? And/or do you ship to them directly? Do you do “drop ships” (where the product goes from the vendor/manufacturer to the end customer)
  • How easy or challenging is to physically find products in the warehouse?
  • How easy or challenging is to physically find products inside your accounting system when purchasing or selling a product?
  • Are there “old”, inactive, or unused products in your accounting system that need to be cleaned up?
  • Do the dates in which the you physically receive the inventory and the date that you receive the bill for that inventory vary? Do you often have discrepancies in the qty and/or price in the bill from the original PO?
  • Do your vendors send you an updates item/price list regularly? If so, do you “import” them?
  • Is the cost of freight, insurance, and/or other direct costs included in the valuation of your inventory?
  • Do you base the sales price of your products as a markup directly from your costs? Or do you have a fixed “list” or retail price for the products?
  • Do you give your sales people “wiggle room” on setting sales prices? Or Do your customers get a specific price/discount based on the “type” of buyer they are or the volume they generate?
  • Do you pay sales commissions? Based on gross sales? Or gross profit?
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