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How to Set Up and Use Barcode Scanning in QuickBooks Desktop

· 8 min read
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Introduction​

Barcode scanning is a powerful tool that streamlines inventory management by automating the tracking of products and supplies. By integrating barcode scanning with QuickBooks Desktop, you can speed up the process of entering inventory items, reduce errors, and maintain real-time accuracy in your stock levels. This feature is particularly useful for businesses that manage large inventories and need an efficient way to track item movements, from purchases to sales.

In this guide, we’ll walk you through the steps to set up and use barcode scanning in QuickBooks Desktop. We’ll cover everything from enabling the Advanced Inventory feature to creating and scanning barcodes, ensuring you can take full advantage of this time-saving technology.

Why Use Barcode Scanning in QuickBooks Desktop?​

  1. Faster Data Entry: Instead of manually entering inventory information, you can scan items, reducing the time spent on data entry.
  2. Increased Accuracy: Barcode scanning minimizes human errors, such as incorrect product codes or quantities, ensuring your inventory data is reliable.
  3. Real-Time Updates: Inventory levels are updated in real-time as items are scanned, giving you an accurate picture of stock availability.
  4. Streamlined Operations: Barcode scanning speeds up various business processes like receiving shipments, stocking shelves, and fulfilling orders.

Step 1: Enable Advanced Inventory in QuickBooks Desktop​

Barcode scanning is part of the Advanced Inventory feature available in QuickBooks Desktop Enterprise. If you’re using QuickBooks Desktop Pro or Premier, you won’t have access to barcode scanning unless you upgrade to the Enterprise edition with Advanced Inventory.

1.1: Activate Advanced Inventory​

  1. Open QuickBooks Desktop Enterprise: Ensure you’re using the Enterprise edition with Advanced Inventory enabled.
  2. Go to Edit > Preferences: In the top menu bar, click Edit, then select Preferences.
  3. Select Items & Inventory: In the Preferences window, click on Items & Inventory from the left-hand menu.
  4. Click the Company Preferences Tab: Under the Company Preferences tab, look for the option to enable Advanced Inventory.
  5. Check the Box: Check the box next to Advanced Inventory to activate the feature.
  6. Save Changes: Click OK to apply your changes.

1.2: Turn on Barcode Scanning​

  1. Go to Inventory Preferences: After enabling Advanced Inventory, go to Edit > Preferences again.
  2. Select Advanced Inventory: From the Preferences menu, select Advanced Inventory.
  3. Enable Barcode Scanning: Under the Barcodes section, check the box that says Enable Barcode Scanning.
  4. Save Changes: Click OK to confirm and enable barcode scanning functionality.

Step 2: Set Up Barcodes for Inventory Items​

QuickBooks Desktop allows you to assign barcodes to your inventory items. You can either generate barcodes automatically or manually enter them if your products already have barcode labels.

2.1: Assign Barcodes Automatically​

  1. Go to the Item List: In QuickBooks, navigate to the Lists menu and select Item List.
  2. Edit an Inventory Item: Right-click on any inventory item and select Edit Item.
  3. Go to the Barcode Section: In the item’s information window, scroll down to the Barcode Number field.
  4. Generate Barcode: If no barcode is assigned, click Generate Barcode. QuickBooks will automatically create a barcode based on the item’s name, description, or part number.
  5. Save the Item: Once the barcode is generated, click OK to save the changes.

2.2: Enter Existing Barcodes​

If your items already have barcodes, you can manually enter the barcode number in QuickBooks.

  1. Edit the Item: Follow the same steps to edit an inventory item.
  2. Enter the Barcode Number: In the Barcode Number field, type in the existing barcode number or scan the barcode using a connected scanner.
  3. Save the Item: Click OK to save the changes.

Step 3: Set Up a Barcode Scanner​

To use barcode scanning in QuickBooks Desktop, you need to ensure your scanner is compatible with QuickBooks. Most USB barcode scanners work seamlessly, especially if they emulate a keyboard and automatically enter data when a barcode is scanned.

3.1: Check Barcode Scanner Compatibility​

  1. QuickBooks Compatibility: QuickBooks Desktop is compatible with most plug-and-play USB barcode scanners that support the Wedge mode (keyboard emulation). Ensure your scanner can read Code 128 barcodes, which QuickBooks typically uses.
  2. Install Drivers (if necessary): If your barcode scanner requires drivers, install them according to the manufacturer’s instructions.

3.2: Connect the Barcode Scanner​

  1. Plug in the Scanner: Connect the barcode scanner to an available USB port on your computer.
  2. Test the Scanner: Open a text editor like Notepad, then scan a barcode. If the scanner is working correctly, the barcode number should appear in the text editor.

Step 4: Use Barcode Scanning in QuickBooks Desktop​

Once you’ve set up your barcode scanner and assigned barcodes to your inventory items, you can start using the barcode scanning feature in various QuickBooks workflows, such as receiving inventory, sales orders, and invoicing.

4.1: Scan Barcodes to Receive Inventory​

When receiving inventory, you can scan barcodes to quickly add items to your inventory records.

  1. Go to Vendors > Receive Items: In QuickBooks Desktop, click Vendors, then select Receive Items to record received inventory.
  2. Scan the Barcode: Use your barcode scanner to scan the item’s barcode. QuickBooks will automatically pull up the associated inventory item.
  3. Enter Quantity: After scanning, enter the quantity of items received.
  4. Save the Receipt: Once all items are scanned and quantities entered, click Save & Close.

4.2: Scan Barcodes for Sales Orders and Invoices​

You can also use barcode scanning when creating sales orders, invoices, or packing slips.

  1. Go to Customers > Create Sales Orders: In QuickBooks, click Customers and select Create Sales Orders or Create Invoices.
  2. Scan the Items: Use your barcode scanner to scan the items being sold or invoiced. QuickBooks will automatically add the scanned items to the sales order or invoice.
  3. Complete the Transaction: After scanning all items, finalize the sales order or invoice by entering customer details and payment information.
  4. Save the Transaction: Click Save & Close to record the transaction.

4.3: Adjust Inventory Levels Using Barcodes​

You can also use barcode scanning to adjust inventory levels for items that are damaged, lost, or returned.

  1. Go to Vendors > Inventory Activities > Adjust Quantity/Value on Hand: In QuickBooks Desktop, navigate to the inventory adjustment section.
  2. Scan the Item Barcode: Use the barcode scanner to quickly pull up the item you’re adjusting.
  3. Enter the Adjusted Quantity: Modify the quantity or value of the item, depending on the type of adjustment.
  4. Save the Adjustment: Once you’ve adjusted the necessary items, click Save & Close to finalize the changes.

Step 5: Generate Barcode Labels (Optional)​

If your items do not already have barcodes, you can generate and print barcode labels directly from QuickBooks Desktop. This can be especially useful for tracking inventory and ensuring that all items are properly labeled.

5.1: Generate Barcodes​

  1. Go to Reports > Inventory: In QuickBooks, click on Reports, then go to the Inventory section.
  2. Select Barcode Label Report: Run the Item Barcodes report to generate a list of barcodes for your inventory items.
  3. Print Barcode Labels: Once the report is generated, use a barcode label printer to print the labels and attach them to your items.

Troubleshooting Common Issues​

6.1: Barcode Scanner Not Recognizing Items​

  • Issue: When scanning a barcode, QuickBooks doesn’t recognize the item.
  • Solution: Ensure the barcode is correctly assigned to the item in QuickBooks. Go to the item list and verify that the barcode number matches the one you’re scanning.

6.2: Scanner Not Working Properly​

  • Issue: The barcode scanner is not inputting data into QuickBooks.
  • Solution: Check if the scanner is properly connected and recognized by your computer. Test the scanner in a text editor to ensure it's working correctly.

6.3: Duplicate Barcodes​

  • Issue: Multiple items have the same barcode, causing confusion in QuickBooks.
  • Solution: Ensure that each inventory item has a unique barcode. You may need to manually reassign barcodes to affected items to resolve duplicates.

Conclusion​

Barcode scanning in QuickBooks Desktop is an invaluable tool for businesses that manage inventory. By setting up barcode scanning, you can automate data entry, improve inventory accuracy, and streamline your business operations. Whether you're tracking stock levels, receiving shipments, or fulfilling orders, barcode scanning helps reduce errors and saves time.

Follow the steps in this guide to enable and use barcode scanning in QuickBooks Desktop, and take full advantage of the Advanced Inventory features to keep your inventory management efficient and accurate.