Warehouses in QuickBooks

Warehouses in QuickBooks Enterprise allow you to track inventory by unlimited Warehouse Locations and even Bins within each Warehouse. Warehouse locations can include: buildings, staging areas, trucks, ships and even “drop ship”. Inventory can be transferred between warehouse locations. Reports showing the location of inventory can be viewed or printed at any time.

In This Article you will learn how to:

  • Enable the Multiple Inventory Site feature in QuickBooks
  • Create Warehouses
  • Transfer Inventory between Warehouses
  • Buy and Sell Warehouse Inventory
  • View Warehouse Reports

How to Enable the Multiple Inventory Site Feature

It is very important to understand what happens in QuickBooks when you first activate the warehouse feature. Let’s go through the steps.

First, switch to single-user mode. From the menu at the top select Edit > Preferences. You will then see the following screen:

Warehouses in QuickBooks

Once you click on “Advanced Inventory Settings”, select the first tab at the top “Multiple Inventory Locations”. Select the box “Multiple Inventory Sites is enabled”. You will then see the window “Enable Multiple Inventory Sites”. Click the down-arrow in the Inventory Site box. You will see an option to create a new warehouse.

You will need to create one warehouse to begin the process. If you have existing inventory, QuickBooks has no idea where each inventory item is located. Inventory will be put into one warehouse during setup. Inventory can later be transferred to the actual location.

Warehouses in QuickBooks

When the Warehouse Feature is activated, QuickBooks places all inventory in one Warehouse location. Inventory must then be transferred in batches to the correct Warehouses.

A temporary warehouse location can be setup, an example of which is shown below.

Warehouses in QuickBooks
Warehouses in QuickBooks

In our example, we have tools in inventory: Hammers, Screwdrivers and Wrenches. Below is our Inventory Report before we assign inventory to a warehouse. Since we have not yet assigned our inventory to a warehouse, there is no warehouse location on this report.

Warehouses in QuickBooks

Once the Multiple Inventory Sites feature is enabled, we must select a single warehouse to place all our inventory. We have selected “Main Warehouse” as a temporary site. Below is an example of our new inventory report. All inventory shows in the “Main Warehouse”.

Warehouses in QuickBooks

Transfer Inventory Between Warehouses

Now we begin the process of transferring our inventory to the actual warehouses. In order to do this, we must create new warehouses. From the menu at the top, select Lists > Inventory Site List. At the bottom left of your screen, click on “Inventory Site” and select new. Setup as many warehouses as you need. There is no limit.

Warehouses in QuickBooks

Here is the form we used to create our Dallas Warehouse.

Warehouses in QuickBooks

Here is a demo.

Demo on creating a new warehouse

Once warehouses are setup, we can begin the transfer process. In order to do this, from the menu at the top, select Inventory > Transfer Inventory. QuickBooks opens the “Transfer Inventory” window shown below.

Warehouses in QuickBooks

Select the date, the warehouse to transfer from and the destination. Select the items and quantity. Each item can be in several warehouses.

In our example, we transfer all our Hammers to our Chicago Location, Screwdrivers to Dallas and Wrenches to Phoenix. From the menu at the top select Reports > Inventory > Inventory Valuation Summary by Site. QuickBooks shows us a report of our inventory by location.

Warehouses in QuickBooks

Buy and Sell Warehouse Inventory in QuickBooks

Once we have transferred our inventory, how does QuickBooks keep track of inventory being purchased and sold?

When a Purchase Order is created, a warehouse should be selected in the “Ship To” field.

Warehouses in QuickBooks
Warehouses in QuickBooks

While it is possible to create a Purchase Order without a warehouse location assigned, once you receive the inventory, QuickBooks will require a warehouse to be entered. If there is no warehouse entered on the Item Receipt, you will receive the following message:

Warehouses in QuickBooks

If you have dozens of items on the Purchase Order and they are all being received into the same warehouse, once you assign a warehouse to the first item, QuickBooks can automatically assign all the items on that Purchase Order to the same warehouse. By answering “Yes” to the message below, all inventory items being received on that form are assigned the same warehouse.

Warehouses in QuickBooks

See the demo below.

Demo on automatically assigning warehouses to all lines on an Item Receipt

Sales Orders and Invoices also work the same way. A Sales Order can be created without a warehouse assigned, but an Invoice cannot be created without a warehouse location. It is always best when possible to designate a warehouse as early in the process as possible.

Warehouses in QuickBooks

The warehouse field must be used on an invoice.

Warehouses in QuickBooks

Quantity by Warehouse

So what if you try to sell inventory and there is not enough in that particular warehouse? QuickBooks alerts you with the following message:

Warehouses in QuickBooks

Selecting “Availability Details” opens the current availability window which provides additional warehouse specific information.

Warehouses in QuickBooks

Reports for Warehouses in QuickBooks

There are many ways to view inventory information by warehouse. Several reports are available by selecting Reports > Inventory. Below is an image of the Inventory Reports menu.

Warehouses in QuickBooks

Here are examples of some of these reports:

Warehouses in QuickBooks
Warehouses in QuickBooks
Warehouses in QuickBooks

Another report is available by selecting Reports > Sales.

Warehouses in QuickBooks
Warehouses in QuickBooks

Tim Plue

About the Blogger

I am an Advanced Certified QuickBooks ProAdvisor and an Adjunct Instructor at Tarrant County College. For over 12 years I have taught QuickBooks and Bookkeeping to dozens of Small Business owners. I can work with your management team to improve your workflow and utilize reporting tools including budgets and cash flow projections. I can help you wherever you are located. Call or email me today to schedule an appointment.  

Phone: 817.723.9294


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