Depending on which version of Quickbooks you use, you may notice an option to subscribe to Advanced Inventory. It’s available in Quickbooks Desktop Enterprise. While optional, Advanced Inventory can prove useful for many businesses. It’s designed to extend Quickbooks’s inventory tracking features. If your business sells a lot of products, you may want to use it. Below are five of the top features of Advanced Inventory.
#1) Track By Location
Advanced Inventory allows you to track product sales by location. Not all businesses operate at a single location. Many businesses have multiple stores or workplaces spread across an equally large number of locations. If your business falls under this category, you may want to use Advanced Inventory. With this optional Quickbooks feature, you can track product sales by location.
#2) FIFO Accounting
Advanced Inventory also offers First In, First Out (FIFO) accounting. It’s an inventory costing method that’s used in the calculation of cost of goods sold. It works on the assumption that your business’s oldest products are sold before its newest products. You will then use these costs in the calculation of your business’s cost of goods sold. Advanced Inventory will bring FIFO accounting to your business’s Quickbooks.
#3) Track By Lot
In addition to location, Advanced Inventory allows you to track products by lot. If you work with six different suppliers, for example, you can track their respective products as they enter your business’s supply line. Each vendor will essentially be assigned a unique lot number. In Quickbooks, you can see which vendor’s products are selling the best at your business and which vendor’s products are selling the worst. Advanced Inventory offers several new tracking methods, two of the most notable being location and lot.
#4) Automatically Track Associated Expenses
By using Advanced Inventory, you’ll have a better understanding of how much your business pays in non-direct expenses associated with its operations. Advanced Inventory provides insight into the cost of insurance, shipping and other associated expenses. It will automatically track these associated expenses so that you don’t inadvertently overpay for them.
#5) Bar Code Scanning
Finally, Advanced Inventory offers bar code scanning. After enabling Advanced Inventory, you can use a compatible barcode scanner to automatically add or remove products from your business’s inventory. When you buy a product for the purpose of reselling it, you can add it to your business’s inventory. When you sell a product, on the other hand, you can remove it from your business’s inventory.
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