Like most small business owners, you likely rely on QuickBooks to help manage your finances. But you may not be taking full advantage of all the features QuickBooks offers.
One such feature is advanced inventory tracking. And there is an advanced inventory QuickBooks solution that can be especially useful to businesses in the manufacturing and distribution industry.
This post will explain advanced inventory tracking and how it can help you run your business more efficiently.
What is advanced inventory in QuickBooks Enterprise?
When it comes to advanced inventory QuickBooks Desktop solutions, Enterprise is the standout for inventory management.
This tool lets businesses manage all inventory items processes from a central dashboard and account for overhead costs, labor costs, Bill of Materials costs, and goods sold.
But what is QuickBooks Enterprise exactly?
QuickBooks dubs Enterprise the “most powerful QuickBooks yet,” with advanced functionality beyond the standard software’s accounting capabilities.
As an all-in-one business solution, QuickBooks Desktop Enterprise automates and simplifies processes such as:
- Accounting.
- Payroll.
- Payments.
- Inventory.
Although QuickBooks Online has some inventory management capabilities, it lacks some crucial inventory maintenance and management aspects.
For example, while you can track inventory with QuickBooks Online, you can’t keep a detailed list of assembly items. This makes it difficult for manufacturing firms to monitor their supply of raw materials and finished products accurately.
How does it work?
QuickBooks’ advanced inventory tracking and management work by automating repetitive tasks and streamlining processes related to inventory management.
Some of the advanced inventory QuickBooks capabilities include:
- Centralized dashboard to manage end-to-end order fulfillment.
- Inventory tracking across multiple inventory locations.
- Automatic inventory forecasting and customized reporting.
- Bin location and lot or serial number tracking.
- Mobile barcode scanning and FIFO inventory costing.
Advantages of advanced inventory for QuickBooks Desktop
So, why should you consider QuickBooks Enterprise for inventory management over a separate tool or an ERP with inventory management capabilities?
Let’s look at some of the main advantages of using the advanced inventory QuickBooks Desktop solution:
- Centralized inventory across multiple warehouses
Not only can you monitor all your inventory items and see how they’re doing from a central dashboard, but you can also track multiple inventory locations. The tool lets users personalize their location tracking on three levels, transfer stocks from one warehouse to another when demand is high, and automate various other background processes.
- Barcode scanning to track items
Have your warehouse crew members download the QuickBooks Desktop Mobile app to turn their devices into mobile barcode scanners. As the data is transferred directly to your QuickBooks account when your workers scan inventory items, you save your employees countless hours of manual admin work.
- Consolidated data on vendors
QuickBooks Enterprise’s Alternate Vendors Center is an electronic repository of all your vendors’ information, from their contact information to pricing details. With this feature, you can also track the time it takes for vendors to deliver items, as well as note down shortages.
- Automated sales order fulfillment process
Stay on top of every sales order, create a priority list of orders to fulfill first, and gain instant access to pertinent information such as inventory levels, incoming delivery schedules, and order statuses.
Limitations of QuickBooks advanced inventory
Despite all the benefits you can gain from advanced inventory QuickBooks Desktop, it isn’t a perfect solution. After all, QuickBooks is, first and foremost, accounting software, not an ERP or MRP.
Let’s take a look at some of the limitations of QuickBooks Enterprise’s advanced inventory tool:
- It doesn’t let companies track lot numbers and serial numbers simultaneously.
- It doesn’t offer suggestions for the most appropriate vendor based on your budget or time constraint. The vendor center is merely a consolidated list of all vendor information.
- You cannot print out serial numbers and barcode number labels. The tool also cannot generate random serial numbers to track product stores.
- It doesn’t generate forecasting reports or trigger push notifications when inventory levels are down.
QuickBooks advanced inventory settings
Trying the additional features is a no-brainer if you’re already using QuickBooks Enterprise to manage your business operations.
The below sections will explain how you can adjust your software advanced inventory QuickBooks desktop settings to toggle the feature on or off in your account.
How to turn on advanced inventory in QuickBooks
- Go to the Edit menu and click Preferences.
- Select Items & Inventory and choose the Company Preferences tab.
- Find the Inventory and Purchase Orders are Active box and check it.
- Click on Advanced Inventory Settings. If the button is unclickable, you must first sync your license data online.
- Go to the Help center, find Manage my License, then Sync License Data Online.
- Head back to Advanced Inventory Settings and make sure the box is checked.
Note: Only users with an active subscription to QuickBooks Desktop Enterprise Platinum and Diamond can access advanced inventory features
Turn off advanced inventory in QuickBooks Desktop
If you no longer want to use your advanced inventory features, you may turn them off by following the below steps:
- Go to the Edit menu and click on Preferences.
- Click on Items & Inventory then head to the Company Preferences tab.
- Click on Advanced Inventory Settings.
- Turn off all the features you no longer want to use.
- In the Advanced Inventory Settings window, click OK, then click OK in the Preferences window. Click OK in the warning window and that’s it.
Key takeaways
QuickBooks Desktop Enterprise is an excellent solution for small businesses that don’t have the budget for more comprehensive ERPs.
It offers a solid inventory management tool with inventory tracking across multiple locations, mobile barcode scanning, a vendor database, and more.
But if you have your sights set on business growth, consider finding a better alternative. A solution like advanced inventory QuickBooks Desktop Enterprise is not built for scalability or complex inventory and resource management.
Consider Method:CRM if you’re looking to integrate with your existing QuickBooks account while expanding functionalities, such as:
- Field service management.
- Lead management.
- Online customer portals.
- Customized forecasting and reporting.
- Customer relationship management (CRM).
This cloud-based solution provides real-time, two-way syncing with QuickBooks, so all your accounting and inventory data remains up-to-date every step of the way.
Learn more about what Method can do for your business with this video.
QuickBooks advanced inventory FAQs
Which QuickBooks edition allows advanced inventory functions?
Only QuickBooks Enterprise Platinum and Diamond allow for advanced inventory management.
How much does QuickBooks advanced inventory cost?
Advanced inventory is free with QuickBooks Enterprise Platinum, costing $2140 for an annual plan, and QuickBooks Enterprise Diamond, costing $4200 billed for the monthly plan.
How do I set up inventory in QuickBooks Desktop?
To set up inventory in QuickBooks Desktop, you’ll have to navigate to the “Edit” menu and select “Preferences”. There, you must click “Items & Inventory” and choose the “Company Preferences” tab. Find the “Inventory and Purchase Orders are Active box” and check it, then clicking on “Advanced Inventory Settings. If the button is unclickable, you must first sync your license data online.
Try Method:CRM for free today!
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