Simplify your accounting with QuickBooks non-inventory items
Not every item in your business needs to be tracked and recorded. This article will look into QuickBooks non-inventory items, what they are, and how to use them.
Most businesses hold some type of inventory — things they order or make and vigilantly track. But there are also many items that don’t need to be tracked.
This article will cover QuickBooks non-inventory items, how to set them up, and how to use them in day-to-day operations. By the end, you will have a solid understanding of how to manage QuickBooks non-inventory items, so you can keep accurate records and make informed business decisions.
What is QuickBooks non-inventory item?
Non-inventory items are goods or services a business uses or sells that are not tracked as part of its inventory. These items are typically not so significant to require individual tracking or are not sold frequently enough to justify the cost of tracking them.
Examples of non-inventory items include office supplies, cleaning supplies, equipment rentals, repair and maintenance services, consulting services, and travel expenses. Non-inventory items can also include small or incidental items necessary for daily operations but do not fit into a specific inventory category.
In QuickBooks, non-inventory parts are tracked separately from inventory items. They are typically assigned a different account type or category in the chart of accounts to make it easier to keep track of them separately from inventory items. By tracking non-inventory items separately, businesses can maintain accurate records and make informed decisions about their overall expenses and revenue.
Quickbooks inventory vs. non-inventory parts
The main difference between inventory and non-inventory parts in QuickBooks is that inventory parts are held in stock for future use or sale, while non-inventory parts are not.
Inventory parts require more management and tracking, as they have an associated cost of holding inventory. They must be monitored to ensure the stock levels are appropriate for the company’s needs. Non-inventory parts, on the other hand, are typically lower in value and do not require as much tracking or management.
How to create a non-inventory item in QuickBooks?
If you need to create non-inventory items in QuickBooks, you can follow the steps below:
- Open QuickBooks Online, click on Get paid & pay, and then on Products & services
- Click on New in the top right corner
- This brings up the Product/Service information
- From there, you can select Non-inventory
- Fill out the necessary fields
- Click Save and close to save the item
You can now use the non-inventory part in QuickBooks when creating invoices, sales receipts, and other transactions.
How to change an inventory item to non-inventory in QuickBooks?
You can’t change inventory items to non-inventory in QuickBooks Online. You can only change the type for services or non-inventory parts in QuickBooks. To do that, follow these steps:
- Once again, open QuickBooks Online, click on Get paid & pay, and then on Products & services
- Locate the service or a QuickBooks non-inventory item you want to change the type for and click on Edit or double-click on it to bring up the Product/Service information screen.
- From there, you can click on Change type and make the change accordingly
- Once you’ve selected the new type, you’re taken back to the Product/Service information screen, where you need to click on Save and close
While QuickBooks Online does not allow you to change the type for an inventory item, there is a workaround to prevent you from creating a new QuickBooks non-inventory item from scratch:
- First, you need to again navigate to your Products & services screen
- Locate the inventory item you need to change the type for and click on the arrow right after the Edit link
- Choose Duplicate
- This will open up the Product/Service information
- Click on Change type and choose the correct one
- Click on Save & close
- Don’t forget to make the necessary balance adjustments
Step up your inventory game
QuickBooks Online can satisfy basic inventory needs, but if you really want to streamline your inventory management, you need more.
Katan’s inventory management software comes with all the features a manufacturer needs to control their inventory, production processes, sales, and much more. Take control of your shop floor, production planning, and more with an easy-to-use yet powerful platform.
In addition, Katana integrates seamlessly with QuickBooks Online and a ton of other business tools. This makes it easy to keep all your information synced across platforms while eliminating tedious copy-pasting and reducing human errors.
Get started by booking a demo with Katana to see how we can help you reach new levels of organization and efficiency.
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