How to Add an Item — Inventory in QuickBooks Online

An Inventory item tracks the physical products you buy and sell, keeping a running count of quantities and their value. Set up correctly, QuickBooks updates stock levels automatically, warns you when to reorder, and posts the cost of goods sold to the right accounts as you sell.

Step 1 – Open Settings

Click the Settings (gear) icon in the upper-right corner of QuickBooks Online, just to the right of the search bar.

Figure – Opening Settings

Step 2 – Open Products & Services

In the Settings menu, select Products and services under the LISTS section. The Products & Services page opens, where you can view, create, edit and manage every item your company buys and sells.

Figure – Opening Products & Services

Step 3 – Start a New Inventory Item

A New product/service – Click the green button at the top-right of the page.

B Inventory item – Select Inventory item from the drop-down menu.

Figure – Choosing the Inventory item type

Step 4 – Complete the Basic Information

A Name – Enter a clear, unique name that identifies the product on invoices and reports.

B Item type – Confirm the type is set to Inventory item so quantities are tracked.

C SKU – Optional stock keeping unit code that makes the product easier to identify and track.

D Category – Optional grouping that keeps similar products together in the list and on reports.

Figure – Completing the basic information

Step 5 – Enter the Inventory Details and Save

A Initial quantity on hand – How many units you currently hold. Required — enter 0 if you have none yet.

B As of date – The date you began tracking the stock. QuickBooks opens your stock records from this date.

C Reorder point – The level at which QuickBooks reminds you to restock, so popular items never run out.

D Inventory asset account – The account where the item’s stock value is recorded — usually Inventory Asset.

E Save and close – Click to create the item and add it to the Products & Services list.

Figure – Entering the inventory details