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How to Turn On Advanced Inventory in QuickBooks Enterprise

· 3 min read
Debits

Introduction​

QuickBooks Enterprise offers an Advanced Inventory feature that enables comprehensive inventory management, including tracking across multiple locations, serial numbers, and FIFO costing. Activating this feature can greatly enhance your business's inventory tracking capabilities. This guide provides a detailed, step-by-step process to turn on Advanced Inventory in QuickBooks Enterprise.

Requirements​

Before enabling Advanced Inventory, ensure that:

  • You have an active QuickBooks Enterprise subscription.
  • Your subscription includes the Advanced Inventory feature.
  • QuickBooks Desktop is updated to the latest version.

Steps to Enable Advanced Inventory​

Step 1: Verify Subscription and Update QuickBooks​

  1. Check Subscription: Ensure your QuickBooks Enterprise subscription includes Advanced Inventory. You can verify this by logging into your Intuit account or contacting QuickBooks support.
  2. Update QuickBooks: Make sure QuickBooks Desktop is updated to the latest version. Go to Help > Update QuickBooks Desktop, then click Update Now and install any available updates.

Step 2: Turn On Advanced Inventory​

  1. Open QuickBooks Desktop: Launch QuickBooks Enterprise and log in with your administrator credentials.
  2. Access Preferences: Go to Edit > Preferences.
  3. Select Items & Inventory: In the left pane, select Items & Inventory.
  4. Enable Advanced Inventory: Click on the Company Preferences tab. Check the box that says Advanced Inventory Settings.
  5. Confirm Activation: Click OK to save the changes. If prompted, follow the instructions to verify your subscription and activate the feature.

Step 3: Configure Advanced Inventory Settings​

  1. Open Advanced Inventory Settings: Go to Edit > Preferences > Items & Inventory > Company Preferences, then click on the Advanced Inventory Settings button.
  2. Multiple Inventory Sites: Enable and configure multiple inventory sites if your business operates across different locations.
  3. Serial Numbers or Lot Tracking: Turn on serial numbers or lot tracking if needed. Go to the Serial / Lot Numbers tab and select the appropriate options.
  4. FIFO Costing: If you want to use FIFO (First In, First Out) costing, go to the Advanced Inventory Settings and select the FIFO tab. Enable FIFO costing and follow the prompts to set it up.
  5. Bin Locations Tracking: Enable bin locations if you need to track inventory within specific locations or bins. Go to the Bin Locations tab and configure the settings.

Step 4: Use Advanced Inventory Features​

  1. Track Inventory Across Locations: Use the Multiple Inventory Sites feature to manage inventory across different warehouses or locations.
  2. Use Serial Numbers and Lot Tracking: Assign serial numbers or lot numbers to inventory items for detailed tracking and management.
  3. FIFO Costing Method: Apply FIFO costing to your inventory to manage costs more accurately.
  4. Monitor Inventory Levels: Utilize the advanced inventory reports to monitor inventory levels, manage stock, and generate insightful reports.

Best Practices for Using Advanced Inventory​

  • Regular Updates: Keep QuickBooks and Advanced Inventory settings updated to ensure optimal performance.
  • Accurate Data Entry: Maintain accurate and timely data entry to ensure inventory records are up-to-date.
  • Training: Ensure your team is trained on using the Advanced Inventory features effectively.
  • Regular Audits: Conduct regular inventory audits to verify physical stock matches your QuickBooks records.

Conclusion​

Activating and using the Advanced Inventory feature in QuickBooks Enterprise can significantly improve your inventory management processes. By following the steps outlined in this guide, you can enable and configure Advanced Inventory to suit your business needs, ensuring efficient and accurate inventory tracking.