Category Archives: QBO

What are the specific reports available with the Simple Start version of Quickbooks Online

First, Simple Start plan may be the best value for the bucks if your business just needs to sync bank accounts to the QuickBooks, categorize transactions to generate the Profit and Loss report; and there is no need for Accounts Payable feature.

These are the built-in standard reports available in Simple Start plan as of December 30, 2015.

simple start reports
simple start reports

Business Overview:

  • Profit and Loss by Month (NEW)
  • Quarterly Profit and Loss Summary (NEW)
  • Profit and Loss
  • Balance Sheet
  • Statement of Cash Flows
  • Audit Log

Notice there is no General Ledger (GL) report on the list. If you think you need this valuable report added to future revision, you should send them your feedback to Intuit developers.
From the home page screen > Company Gear (upper right corner) > Your Company > Feedback > Post Your Own Idea

Review Sales:

  • Sales by Customer Summary
  • Sales by Product/Service Summary
  • Product/Service List
  • Customer Contact List
  • Estimates by Customer
  • Deposit Detail

Manage Accounts Receivable:

  • Customer Balance Summary
  • A/R Aging Summary(1)
  • Collections Report
  • Invoice List
  • Statement List

(1) TIP: Notice there is no A/R Aging Detail report on the list. From A/R Aging Summary report > click grand total amount link under “TOTAL” column. It will take you to the A/R Aging Detail report. The only difference with plans is you can’t customize this report.

Review Expenses and Purchases:

  • Transaction List by Vendor
  • Vendor Contact List
  • Check Detail

Notice there is no A/P Aging Summary report listed because there is no Accounts Payable (A/P) feature in Simple Start plan.

Manage Sales Tax:

  • Taxable Sales Summary
  • Sales Tax Liability Report

Manage Employees:

  • Employee Contact List

Manage Payroll:
(Once you are subscribed to the Intuit Payroll service, you may also see the following reports)

  • Time Activities by Employee Detail
  • Recent/Edited Time Activities
  • Payroll Summary
  • Payroll Tax Liability
  • Payroll Tax Payments
  • Payroll Billing Summary
  • Payroll Details
  • Employee Details
  • Payroll Tax and Wage Summary
  • Workers’ Compensation
  • Total Payroll Cost
  • Payroll Deductions/Contributions
  • Paycheck List
  • Total Pay
  • Vacation and Sick Leave
  • Retirement Plans
  • Multiple Worksites
  • Employee Directory

Accountant Reports:

  • Account List
  • Reconciliation Reports
  • Journal
  • Profit and Loss
  • Balance Sheet
  • Exceptions to Closing Date
  • Statement of Cash Flows
  • Transaction List by Date
  • Recent Transactions

These are additional reports available with QBO Accountant version.

  • Adjusted Trial Balance (Accountants Only)
  • Adjusting Journal Entries (Accountants Only)
  • Profit and Loss Comparison (Accountants Only)
  • Balance Sheet Comparison (Accountants Only)

TIP: From Accountant version, you can UNDO bank reconciliation. Check out our article and how-to video.

My Custom Reports
You can customize many of the built-in reports and make it your own reports. Set up to automatically distribute by email. Awesome!

Management Reports
Professional set of ready-to-use management reports as prepared by accounting firms. Also, an ability to add additional built-in reports to the management reports. You can’t automate the reports at this time.

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Our top 10 QBO improvements list of 2015

1. Permanently delete-excluded bank transactions
2. Mark a bank transaction as a billable expense and assign it to a customer
3. Collapse the left navigation bar
4. Multi-currency support
5. Add custom reports to your management reports packages
6. Hide sensitive data from limited access users on Customers and Vendors pages
7. Hide account balances from “limited access” users
8. Add subtotals on invoices and estimates1
9. Copy journal entries
10. Quicker access to registers right from the home page

Top 10 QBO Improvements of 2015

QuickBooks Online – Review of 2015 top improvements, worse update, 2016 wish list

QuickBooks Online Support Phone Number

They have different phone numbers for specific topics.
Try 1-800-488-7330 for QuickBooks Online Support. Expect wait time thirty minutes plus. Here is contact us link to their website.


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QuickBooks Online Tutorial Videos

TypeDescription and YouTube Video Link
Enter ExpensesHow to enter various expenses in QuickBooks Online Plus? The best tutorial video!!!
Create Invoices, Sales Receipt, Undeposited Funds, Bank DepositsQuickBooks Online (QBO) Tutorial - Customer Invoice, Sales Receipt, Receive Payment, Bank Deposit
Chart of Accounts (COA)QuickBooks Online - As a sole proprietor, how do I set up to pay owner in new QBO
InventoryQuickBooks Online Plus: how to add beginning inventory quantity on hand
QBO TourQuickBooks Online Plus and Essentials: New Look of 2014 QuickBooks Online - Quick Learning Tour
Browser IssueQuickBooks Online: Link problems, popups issues with Google Chrome browser
New QBO vs Old QBOQuickBooks Online - Brief side by side navigation guide from old QBO classic to new QBO harmony
Undeposited Funds, Bank DepositsQuickBooks Online: How do I group bank deposit with Undeposited Funds in new QuickBooks Online?
Memorized / Recurring TransactionsQuickBooks Online -- how to set up memorized transactions or recurring transactions in new QBO
QBO Tabbed BrowsingQuickBooks Online: How to tile vertically two reports (or more) side by side on the same screen?
Your CompanyWhere do you sign out or log out in new QuickBooks Online
Latest ImprovementsWhat are the new improvements in QuickBooks Online just announced in May, 2014
CustomersQuickBooks Online: How to use Delayed Charge to produce Pipeline Revenue, Sales & Cash Forecast?
Sales CommissionsQuickBooks Online: How to run Sales Report by Sales Rep to calculate Commissions in new QBO?
QBO Tabbed BrowsingQuickBooks Online: How to tile vertically two reports (or more) side by side on the same screen
InventoryQuickBooks Online: How to import Inventory with Quantity on Hand from Excel into new QBO
Chart of Accounts (COA)QuickBooks Online: How do you delete (or deactivate) an account on the Chart of Accounts (COA)
QBO TourNew QuickBooks Online (QBO) -- Tips & Tricks on Navigating QuickBooks Online - Top Learning Video
Print ChecksNew QuickBooks Online (QBO) - Print Checks
Print Batch InvoicesNew QuickBooks Online (QBO) - How to print multiple invoices in a batch in new QuickBooks Online
Record Merchant Video: How to Record Fees from PayPal and Square in new QuickBooks Online (QBO)
Clear Data / Wipe OutQuickBooks Online Plus and Essentials: How do I delete (wipe out) all my data and start over
Bank How to do bank reconciliation in new QuickBooks Online
Void / Delete ChecksQuickBooks Online (QBO) - How can I void or delete checks in new QuickBooks Online
Bank ReconciliationHow to run previous months bank reconciliation reports in new QuickBooks Online
Print - How do I print Invoices from the print queue in new QuickBooks Online QBO
Enter Credit Card ExpensesQuickBooks Online Tutorial - how to enter credit card in the new QuickBooks Online (QBO)
Chart of Accounts (COA)Where do I find the chart of accounts in new QuickBooks Online? How to create new Chart of Accounts?
Customized Financial ReportsHow to run Profit and Loss Report for selective accounts from Chart of Accounts in QuickBooks Online
InvoiceQuickBooks Online Plus - Create Sales Form Invoice Subtotal
Understanding Balance SheetBalance Sheet -- Quick and Easy Way to Learn Tutorial Video for Non-Accountants
Class TrackingNew QuickBooks Online (QBO) - Step by step guide to use CLASS tracking in new QuickBooks Online
Class TrackingTrack Classes - Turn ON Class Tracking feature in new QuickBooks Online, pt 1 of 4
Class TrackingTrack Classes - Make a Class Inactive delete in new QuickBooks Online, pt 2 of 4
Class TrackingTrack Classes - Make an Inactive previously deleted class Active in new QuickBooks Online. pt 3 of 4
Class TrackingTrack Classes - Run Profit and Loss by Class Report in new QuickBooks Online, pt 4 of 4
VendorVendors - how to apply a specific vendor credit against vendor bill payment in new QuickBooks Online
PayrollPayroll - print a specific employee paycheck in new QuickBooks Online
PayrollPayroll - batch print employees paychecks in new QuickBooks Online
Accounting MethodHow do I change the accounting method for my company in new QuickBooks Online
CustomerQuickBooks Online - how can I refund a customer overpayment in new QuickBooks Online QBO
Sales ReceiptsHow do I batch print unprinted Sales Receipts now in new QuickBooks Online (QBO)
Data FormatHow do I change date format in new QuickBooks Online (QBO)
VendorHow should I really enter refund by a Vendor in new QuickBooks Online QBO
Check RegisterHow can I print a Check Register or Check Listing only in new QuickBooks Online
Bookmark QBOHow to bookmark QuickBooks pages in new QuickBooks Online
Add Second CompanyHow to add a second company in new QuickBooks Online
Merchant FeesQuickBooks Online: How to record fees from credit cards, paypal, square, merchant processors
CustomersQuickBooks Online: How can I apply discount taken by a customer on payment received
CustomersQuickBooks Online: How do I enter when a customer pays with part cash & credit card
CustomersCustomers / Clients: How do I apply credit to an Invoice in new QuickBooks Online
InventoryQuickBooks Online: How to delete posted transaction to Inventory Shrinkage COGS Account
Closing The BooksClosing the books feature in new QuickBooks Online
InvoicesQuickBooks Online: How do I customize my Invoice. Where is my Customize Data Layout
Match Bank DepositQuickBooks Online: Enter one bank deposit & match to several different invoices
Sales TaxQuickBooks Online: Where do I find the amount of sales taxes due
InvoicesHow do I search for my Invoices by the Customer PO number in new QuickBooks Online
CustomersHow can I record a credit memo to a member customer and also have it record an expense
Fixed Assets
Purchase of Fixed Assets on Loan
Fixed Assets, Depreciation, Purchase of Fixed Assets on Loan
CustomersHow to transfer from one customer outstanding balance to another customer credit balance
Vendors / CustomersCan billable expenses be billed in two partial invoices
BankingHow to enter monthly service charges and interest earned from bank accounts
Chart of Accounts / Products and Services ListHow to change the account associated with product and service item
Financial ReportHow to Forecast Cash Flow
Customers / InvoicesHow to change transaction numbers on sales forms (Invoices, Sales Receipts)
Sales FormsHow to add a logo to sales invoices
Banking ReportHow to create a report of voided checks
InvoicesHow to show account summary balance due on new invoices
Inventory Handle inventory group type to sell bundle package deal
InventoryHandle Inventory Assembly
BankingHow to permanently delete bank downloaded transactions in bank feeds
Settings / Customize InvoicesEmployer Identification Number EIN (Where to enter / How to use it on Invoices)
BankingPaying for personal expenses from a business checking or credit card account
Chart of AccountsHow do I set up Owners or Partners Equity in Chart of Accounts
ReportsStatement of Cash Flow
Invoices / Sales ReceiptsHow to change transaction numbers on sales forms (Invoices, Sales Receipts)

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Bug or defective issues in QuickBooks Online (QBO)
After importing a Product list into QuickBooks Online, I am trying to delete the Inventory Adjustment from my bank register but see "Unexpected Internal Error. (-30006)."
I have created Payroll checks in my QuickBooks Full Service Payroll account but those paychecks are not appearing in the appropriate bank register in QuickBooks.
Why has my 940, 941 or 944 been rejected?
Why is the Import button greyed out when I am importing customers from an excel spreadsheet?
I've already run payroll in my QuickBooks Online Payroll account, but when I click on the Run Payroll button I get a blank screen.
I am viewing my California DE9 form in an Intuit Online Payroll or Intuit Full Service Payroll company and page 2 of the form is missing employee data.
I am trying to update my BB&T banking online transactions to my Quickbooks Online account and I'm unable to; instead I'm getting errors 106, 103 or 108.
I am trying to log in to my Intuit Full Service Payroll and Intuit Online Payroll accounts but can't; the page appears to load but then loops back to the login screen.
When I edit a downloaded expense transaction from the transaction screen the line item amount disappears.
I'm trying to access the Banking page in QuickBooks Online and I keep getting this error: "Cannot read the property length of undefined." How do I get past this?
Every time one of my users logs in to QuickBooks Online, they are prompted to reset their password.
The recurring transactions I had scheduled to run on 12/1/2015 in QuickBooks Online have not run. What am I supposed to do?
Whenever I attempt to send an invoice, estimate or purchase order in QuickBooks Online, I get the error message "Delivery server down."
I'm editing the secondary account (distribution account) on an expense or check from within the QuickBooks Online bank account register, and the change is not sticking.
I'm trying to view my current Q3 941 forms in my Intuit Online Payroll account but I'm unable to; an error message pops up that says "Failed to load PDF document."
I've created paychecks in my Intuit Full Service Payroll company but I am unable to approve them. What is happening?
I'm unable to log in to QuickBooks Online via the Mac App - I get either a blank white screen, a flashing white screen or the page gets stuck loading.
My Mac is on OS X El Capitan and when I attempt to access QuickBooks Online via the Mac app I see this: "We encountered an error trying to sign in. Please try again."
It would be great if the Sync with PayPal App supported PayPal-branded Debit Cards. Any chance of that functionality being added for use with QuickBooks Online soon?
When I try to login to QuickBooks Online via both my iOS and Android mobile apps, I see this error: "We are not able to connect to QuickBooks Online. Try again later."
When I visit and click on the Payroll tab, I see this error message: "You've received a system error that we need to review and resolve for you."
When I attempt to e-sign any Legal Documents under Payroll Tasks on my QuickBooks Full Service Payroll screen, I see this error: "Cannot connect to server."
I'm trying to accept an invitation to a QuickBooks Online company but when I do I get this error: "Service Temporarily Unavailable."
Some of my closed and partially closed invoices in QuickBooks Online are reflecting incorrect open balance amounts.
My Chase Bank automatic updates aren't downloading transactions in QuickBooks Online and sometimes I get a 102 error. Why is this happening?
Why am I being prompted to confirm your account information?
I'm editing an Expense Transaction added from the Banking screen and see the error: "One or more lines do not have a tax code Please assign a tax code..."
I'm trying to view my archived Q3 941 form in my Intuit Online Payroll account and I get this error: "Failed to load PDF document."
I'm trying to export Intuit Online Payroll data to QuickBooks Online and get the error message "You're missing some information..." followed by accounts that are set up.
I am processing payroll in my Intuit Online Payroll company and after creating and approving paychecks, I get a blank page when I try to print them out.
I recently made a Federal 941 payroll tax payment in QuickBooks Online Payroll but haven't received the Federal Payment Confirmation(E-Payment Report) for the payment.
I'm trying to migrate my data from my QuickBooks Desktop company to QuickBooks Online and the import is freezing at the "Making a copy of your company file" screen.
In my Online Payroll company, my Paycheck List reflects a split direct deposit transaction as "Direct Deposit and Check" for one of my employees.
I have tried updating my company address in QuickBooks Online in both the Company Settings and Company Info areas and am unable to - I keep getting error messages.
I am trying to update my Citibusiness Checking Online transactions to my corresponding QuickBooks Online account and I'm unable to; instead, I'm getting a 102 error.
I am trying to update my Citibusiness Checking Online transactions to my corresponding QuickBooks Online account and I'm unable to; instead, I'm getting a 103 error.
I've created rules for Bank Transfers in QuickBooks Online but when they appear in Banking, the rules don't apply and the transfer details show as "uncategorized asset."
When I try log in to QuickBooks Online, I get the error "The feature you've requested is temporarily unavailable," and am prompted to reference code 25625 with support.
When I look at my Activity Feed in QuickBooks Online, I see a payroll tax payment due for a tax payment that I've already paid.
My recurring sales receipts are set to charge a credit card I have stored in QuickBooks Online. Editing those transactions unchecks the "Process Card when saving" box.
I am trying to download my banking transactions from Chase Bank to QuickBooks Online and I'm getting a 102 error.
I created paychecks using multiple pay types and selected Save for Later. When I go back, Regular hours are increased and other pay types hold their original values.
When I click on the "Download" button while exporting my QuickBooks Online company file to QuickBooks Desktop, I get this error: "Unexpected result code from server."
I am trying to view forms in QuickBooks Online Payroll and I am being redirected to the Intuit Full Service Payroll login portal instead.
When I try to pay payroll taxes or run payroll in QuickBooks Online Payroll, I see this error message: "Uh-oh. We hit a system error. Please sign out and sign in again."
Exporting Intuit Online Payroll data to QuickBooks Online and I see this: "You're missing some information. Please enter the following on the Export Preferences Page."
My employees are trying to log in to the Intuit Online Payroll time clock and are getting a "HTTP Status 500" error message.
When I click on any QuickBooks Online Payroll link, I get this message: "Uh-oh. We hit a system error."
I am exporting my Intuit Online Payroll data to QuickBooks Online and I see this message: "We couldn't connect your Online Payroll to your QuickBooks account."
I am unable to manually reconcile the "Transfer Funds To" account from a Transfer transaction in QuickBooks Online.
My credit card deposits are not auto batching as they should be in my QuickBooks Online account.
I have received an email advising me that my QuickBooks Online subscription did not successfully renew and will be suspended unless I updated my billing information.
When I try to log in I see this message: "Your administrator has not granted you access to QuickBooks Online.Please contact your system administrator with any questions."
I have both Intuit Online Payroll and Intuit Full Service Payroll companies and when I try to export paychecks into QuickBooks Online, I am seeing a 6003 error.
When I click on a previous tax payment made in my QuickBooks Online Payroll account, I see the message "Uh-oh. We hit a system error."
After filling out the employee new hire form in Intuit Online Payroll, the employee information is not populated into the state new hire form.
I'm trying to access the App Center in QuickBooks Online. After entering my password, I'm returned to the sign-in screen and prompted to enter the password again.
An invited user to QuickBooks Online sees a "Service Temporarily Unavailable" error when trying to accept the invite and is unable to accept the invite.
I see "An unexpected problem occurred on the server during your request," error when I run the Customer Balance Summary report or A/R Aging report in QuickBooks Online.
If I change a transaction status from Cleared ("C") or Reconciled ("R") and navigate away from the register, when I go back to the register the status remains unchanged.
I am importing my company file from a QuickBooks Desktop 2015 version to QuickBooks Online and my screen freezes and hangs on "Making a copy of your company file."
When I print a multi-page invoice in QuickBooks Online, the last line item on the first page is duplicating on the next printed page of the invoice.
When trying to send an invoice, estimate or purchase order in QuickBooks Online, I see the error "Delivery Server Down."
When I try to use the QuickBooks Online mobile app on my Apple device with iOS 9, several functions cause the app to become non-responsive or crash.
I have logged in to QuickBooks Online - when I go to select my company, I get a blank, white screen.
I am trying to export tax payments from Intuit Full Service Payroll to QuickBooks Desktop and I'm seeing a "Java 144" error.
I see tasks that already have been addressed in my QuickBooks Online Payroll task list as needing to be attended to.
I am trying to access my file and see "Your administrator has not granted you access to QuickBooks Online. Please contact your system administrator with any questions."
I see tasks that already have been addressed in my QuickBooks Online Payroll task list as needing to be attended to.
I use QuickBooks Payments in QuickBooks Online and my ACH fees are appearing as individual expense transactions instead of in a batch as they should.
I'm looking at my payment history in the Your Account section of QuickBooks Online and I don't see my most recent subscription charges.

2015 Laser 1099-MISC Income, Federal Copy A, Bulk

2015 Laser 1099-MISC Income, Federal Copy A, Bulk

Build a website with content. People will come. #QBFirmOfTheFuture

First, thank you to all 180 countries for visiting our website!

We have been building a website that has a ton of quality content. Here, you learn QuickBooks! And, share your knowledge!

It is great to know you are sharing your QBO knowledge with your friends and colleagues. Many people have also told us they found a high-paying job by learning QBO from our blog and watching our tutorial videos. Congratulations and good luck with your new job!

Also, thank you for bookmarking our site!

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Our pinned countries!
Out of the 180 visiting countries, we think there is a sign of growing market in these ten countries. That’s why we pinned these countries to review our projection next year. We expect increase in page views from these countries. (They may login with their Global user accounts or their US access accounts.) #CrystalBall #JustForFun

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Here is our top 10 visiting countries in alphabetical order.

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Is there a Help screen back button in QuickBooks Online?

Self-help window screen does have a back button once an answer is selected. First, you have to go to Help screen:



1 help


When you are in an answer window screen and would like to go back to a previous answer, click the small white arrow that points to the left. It is located just to the left of the search field at the top of the window screen.

2 white arrow


They have several external-facing pages with self-help content for QuickBooks Online. Some of the contents are not up-to-date. Some external links will take you to unrelated articles. We recommend visiting our site ( to learn QBO. For QBO tutorial videos library visit our other site > > Our “watch and learn YouTube videos” are watched and subscribed by QBO users from over 150 countries.


#QuickBooks Online


How does “Inventory in and out” work in QuickBooks Online Plus?

First, let’s start with understanding what “Inventory in and out” means in QBO. It means you will be adding (in) purchased inventories to Inventory Assets account that is current assets type to the chart of accounts and you will be subtracting (out) sold inventories quantity/cost when you create Sales Form (either Invoice or Sales Receipt), which will be posted to COGS account.

Yes, you do need Plus plan to have Inventory feature in QBO. Inventory feature is not available in QBO Simple Start and QBO Essentials.

You will use the vendor forms (expense, check, bill) to enter “inventory in” (add to inventory asset). Journal Entry form will not work to enter “inventory in”.

Blank Vendor Bill Form
Click on the screenshots below to enlarge them
1 bill form account
Let’s look at the blank vendor bill form (above) before making any feature setup changes. The form has “Account” column (part of chart of accounts), but no “Item Details” with columns like “Product/Service”, “Quantity” and “Rate”. We do not enter “inventory in” yet. We go through the steps below to make “inventory in and out” work:

STEP 1: Enable products and services settings ON

  • From the home page screen
  • Company Gear (upper right corner)
  • Settings
  • Company Settings
  • Sales
  • Products and Services
    1. Show Product/Service column on sales forms ON
    2. Track quantity and price/rate ON
    3. Track quantity on hand ON
  • Save / Done

2 products and services settings


STEP 2: Create new products and services (or item list) for inventory item

  • From the home page screen
  • Company Gear (upper right corner)
  • Lists
  • Products and Services
  • New
  • Fill out Product or Service Information
  • Inventory Name
  • To Track Quantity on Hand (for inventory items)
    Select checkbox > I track quantity on hand for this product. This enables inventory cost accounting.
  • Initial Quantity On Hand (enter “0” for new item)
  • As Of Date = today’s date
  • Inventory Asset Account = Inventory Asset (Default account. Do not select other account or create new one.)
  • Sales Information = Description on sales forms (Invoice or Sales Receipt)
  • Purchasing Information = Description on purchase forms (Purchase Order)
  • Price/Rate = Sales Price (will see it on Invoice or Sales Receipt)
  • Cost = Purchase Price (will see it on Vendor Forms like Bill, Check, Expense)
  • Income Account = Revenue/Sales account from the Chart of Accounts (will later see it on P&L Report)
  • Expense Account = COGS from the Chart of Accounts (will later see it on P&L Report)
  • Checkbox if product is taxable. To setup sales tax (left blue navigation bar > sales tax)
  • Save and Close

3.1 add new inventory
3.2 add new inventory


STEP 3: Enter “Inventory in” by using Vendor Forms (Bill, Expense, Check) and selecting Item Details section (Not Account details section)

  • Choose a Vendor (name of the company you bought inventory item)
  • Fill out necessary information and move to Item Details section
  • Product/Service = inventory item you want to add in (in this example, mountain bike)
  • Description should prefill once you enter product/service item. You can change it if necessary to track more information.
  • Qty = quantity purchased per vendor bill
  • Rate = purchase price per vendor bill
  • Amount = total purchase amount per vendor bill (qty x rate)
  • Save

4 enter bill for inventory


STEP 4: Enter Inventory out by creating Sales Forms (Sales Receipt, Invoice)

  • Choose a Customer/Client (name of the company you sell inventory item to)
  • Fill out necessary information and move to Product/Service section
  • Product/Service = inventory item you want to sell (in this example, mountain bike)
  • Description should prefill once you enter product/service item. You can change it if necessary to track more information.
  • Qty = quantity customer buying
  • Rate = price customer paying
  • Amount = total revenue/income amount (qty x rate)
  • Save

5 sales receipt inventory out


You can run built-in Inventory Valuation Detail Report (left navigation bar > report > go to report and select the report) to review in and out of inventory product item. In this example (Item = Mountain Bike):

  • Inventory “in”
    Quantity = 10
    Rate = $200
    Total Inventory Amount = $2,000.00
  • Inventory “out”
    Quantity = 4
    Rate = $300
    Total Sales Amount = $1,200
  • Inventory “on hand”
    Quantity = 6
    Valuation = $1,200 (6 x $200)

6 inventory valuation detail

For the income side (you can run Profit and Loss report and customize the columns for products/services), you should have $400 gross profit (qty 4 x $100 profit per item)

  • Sales = $1,200 (qty 4 x sales price $300)
  • Cost = $800 (qty 4 x cost price $200)

7 profit and loss


FIFO (First-in, First-out) Method

QuickBooks Online uses the FIFO method of inventory valuation. As the name implies, QuickBooks Online will always consider the first units purchased (First In) to be the first units sold (First Out) and will adjust your Inventory Assets and Cost of Goods Sold (COGS) accordingly whenever sales of inventory items are entered.

Let’s expand this case by adding a few more transactions here.

As of previous example, we have 6 units left in stock. They were purchased at $200.00 per unit. Total inventory valuation amount is $1,200 ($1,200).

Let’s suppose, we purchased 10 more units of bikes at $220.00 per unit (total bill = $2,200).

  • Our new total inventory valuation = $3,400 (1200 + 2200)
  • Our new quantity on hand = 16 (6 from previous purchase + 10 from new purchase)
  • Our new average cost = $212.50 ($3,400 divide by 16 stock units)

8 fifo inventory valuation

Let’s suppose, we sold 8 units. What would be the COGS now?

  • 6 units @ $200.00 = $1,200
  • 2 units @ $220.00 = $440
  • Total COGS for 8 units = $1,640

9 profit and loss


#QBO Plus