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:
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.
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.
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.
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”.
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.
Here is the form we used to create our Dallas Warehouse.
Here is a demo.
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.
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.
Buy and Sell Warehouse Inventory
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.
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:
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.
See the demo below.
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.
The warehouse field must be used on an invoice.
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:
Selecting “Availability Details” opens the current availability window which provides additional warehouse specific information.
View Warehouse Reports
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.
Here are examples of some of these reports:
Another report is available by selecting Reports > Sales.
If you have any questions using the Warehouse feature in QuickBooks, please feel free to Contact Us.