Help with initial inventory - after the fact

[JM]

I'm a broker of individual electronic components. I don't maintain a
physical inventory, but I want to use QB2004 as if I do. I buy the parts I
need after I make the sale. Basically, a customer tells me what they are
looking for, and I go out and find it. I buy the part from a variety of
vendors and usually have the part dropped shipped directly to the customer.

I'm just now setting up QB, and I've got about 50 completed transactions
from the past 2-3 weeks to enter. My question is, what is the best way to
set up my inital inventory so that after entering these orders I will be at
a zero inventory with my accounting properly reconcilled? Do I receive them
against my COGS account? Do I have to get it exactly right when I do the
initial setup after installation, or can I enter all my part numbers/items
first (with zero quantity), then go back and do an inventory adjustment to
the quantities called for on the orders? If the latter, what adjustment
account do I use?

Thank you,

jm

[Allan Martin]

"JM" <jm@yahoo.com> wrote in message
news:CKf9f.102638$tD4.82024@tornado.ohiordc.rr.com... I'm a broker of individual electronic components. I don't maintain a physical inventory, but I want to use QB2004 as if I do. I buy the parts I need after I make the sale. Basically, a customer tells me what they are looking for, and I go out and find it. I buy the part from a variety of vendors and usually have the part dropped shipped directly to the customer. I'm just now setting up QB, and I've got about 50 completed transactions from the past 2-3 weeks to enter. My question is, what is the best way to set up my inital inventory so that after entering these orders I will be at a zero inventory with my accounting properly reconcilled? Do I receive them against my COGS account? Do I have to get it exactly right when I do the initial setup after installation, or can I enter all my part numbers/items first (with zero quantity), then go back and do an inventory adjustment to the quantities called for on the orders? If the latter, what adjustment account do I use?


Neither, I would not treat items that I do not normally keep in stock as
stock items. Doing so adds an additional level of complexity as well as
increase the file size, with no benefits. Perhaps I'm missing something.
What is your reason for treating these items as if they were stock items?



Thank you, jm

[JM]

"Allan Martin" <Allan@GreatGuy.com> wrote in message
news:QUp9f.30847$ol.7300@fe08.lga... "JM" <jm@yahoo.com> wrote in message news:CKf9f.102638$tD4.82024@tornado.ohiordc.rr.com... I'm a broker of individual electronic components. I don't maintain a physical inventory, but I want to use QB2004 as if I do. I buy the parts I need after I make the sale. Basically, a customer tells me what they are looking for, and I go out and find it. I buy the part from a variety of vendors and usually have the part dropped shipped directly to the customer. I'm just now setting up QB, and I've got about 50 completed transactions from the past 2-3 weeks to enter. My question is, what is the best way to set up my inital inventory so that after entering these orders I will be at a zero inventory with my accounting properly reconcilled? Do I receive them against my COGS account? Do I have to get it exactly right when I do the initial setup after installation, or can I enter all my part numbers/items first (with zero quantity), then go back and do an inventory adjustment to the quantities called for on the orders? If the latter, what adjustment account do I use? Neither, I would not treat items that I do not normally keep in stock as stock items. Doing so adds an additional level of complexity as well as increase the file size, with no benefits. Perhaps I'm missing something. What is your reason for treating these items as if they were stock items?

I should not have said "I don't maintain a physical inventory." Actually, I
don't maintain *much* physical inventory. There are actually two parts to
my business: A brokerage part and a local service part. For the former, I
mostly buy and sell, only rarely even seeing the products. However, from
time to time I do buy overage when I get an especially good price. For the
local service part of my business, I do stock about 35 part numbers.
Basically, I sell from 3 accounts: Electronic components (broker side),
Network Componets (local side), and Network Service (local side).

My initial question refers to my immediate need to record completed
transactions, all, just by chance, from the broker side. I guess my
thinking is to show inventory on all products, since I have inventory of
some products. In a past life in a similar industry, I treated brokered
items this way, even though I maintained a substantial physical inventory.
When I had to purchase something from another vendor for a sale, I would
receive the item into inventory against the PO, then pull it from inventory
for the order. Although the item was just passing through, I treated it as
inventory. In that case, at least, this simplified reporting.

I would be interested in hearing about alternative ways to set this up.

thanks,
jm

[HeyBub]

JM wrote: "Allan Martin" <Allan@GreatGuy.com> wrote in message news:QUp9f.30847$ol.7300@fe08.lga... "JM" <jm@yahoo.com> wrote in message news:CKf9f.102638$tD4.82024@tornado.ohiordc.rr.com... I'm a broker of individual electronic components. I don't maintain a physical inventory, but I want to use QB2004 as if I do. I buy the parts I need after I make the sale. Basically, a customer tells me what they are looking for, and I go out and find it. I buy the part from a variety of vendors and usually have the part dropped shipped directly to the customer. I'm just now setting up QB, and I've got about 50 completed transactions from the past 2-3 weeks to enter. My question is, what is the best way to set up my inital inventory so that after entering these orders I will be at a zero inventory with my accounting properly reconcilled? Do I receive them against my COGS account? Do I have to get it exactly right when I do the initial setup after installation, or can I enter all my part numbers/items first (with zero quantity), then go back and do an inventory adjustment to the quantities called for on the orders? If the latter, what adjustment account do I use? Neither, I would not treat items that I do not normally keep in stock as stock items. Doing so adds an additional level of complexity as well as increase the file size, with no benefits. Perhaps I'm missing something. What is your reason for treating these items as if they were stock items? I should not have said "I don't maintain a physical inventory." Actually, I don't maintain *much* physical inventory. There are actually two parts to my business: A brokerage part and a local service part. For the former, I mostly buy and sell, only rarely even seeing the products. However, from time to time I do buy overage when I get an especially good price. For the local service part of my business, I do stock about 35 part numbers. Basically, I sell from 3 accounts: Electronic components (broker side), Network Componets (local side), and Network Service (local side). My initial question refers to my immediate need to record completed transactions, all, just by chance, from the broker side. I guess my thinking is to show inventory on all products, since I have inventory of some products. In a past life in a similar industry, I treated brokered items this way, even though I maintained a substantial physical inventory. When I had to purchase something from another vendor for a sale, I would receive the item into inventory against the PO, then pull it from inventory for the order. Although the item was just passing through, I treated it as inventory. In that case, at least, this simplified reporting. I would be interested in hearing about alternative ways to set this up.

Still not, in my view, a compelling reason. If you have parts on-hand that
you'll use up in a relatively short time - say, less than a year - buy them
under COGS, not inventory. You don't keep an inventory of office supplies
(copy paper, paper-clips, etc.) for the reason that it's more trouble to
keep track of them than it's worth.

Basic rule: Don't use a compute to maintain an "inventory" if there's a
better way (i.e., "eyeball").

You say your former method simplified reporting; how so? When you sell
something - a service or a part - QB will still keep track of your sales,
even if the something is not part of your inventory.

[John]

I would set them up as non inventory items. Set one up as brokerage
part and the other as service part

Look at the toolbar . . .Click - List / Item List / New Item . . .


On Mon, 31 Oct 2005 15:42:34 GMT, "JM" <jm@yahoo.com> wrote:
"Allan Martin" <Allan@GreatGuy.com> wrote in messagenews:QUp9f.30847$ol.7300@fe08.lga... "JM" <jm@yahoo.com> wrote in message news:CKf9f.102638$tD4.82024@tornado.ohiordc.rr.com... I'm a broker of individual electronic components. I don't maintain a physical inventory, but I want to use QB2004 as if I do. I buy the parts I need after I make the sale. Basically, a customer tells me what they are looking for, and I go out and find it. I buy the part from a variety of vendors and usually have the part dropped shipped directly to the customer. I'm just now setting up QB, and I've got about 50 completed transactions from the past 2-3 weeks to enter. My question is, what is the best way to set up my inital inventory so that after entering these orders I will be at a zero inventory with my accounting properly reconcilled? Do I receive them against my COGS account? Do I have to get it exactly right when I do the initial setup after installation, or can I enter all my part numbers/items first (with zero quantity), then go back and do an inventory adjustment to the quantities called for on the orders? If the latter, what adjustment account do I use? Neither, I would not treat items that I do not normally keep in stock as stock items. Doing so adds an additional level of complexity as well as increase the file size, with no benefits. Perhaps I'm missing something. What is your reason for treating these items as if they were stock items?I should not have said "I don't maintain a physical inventory." Actually, Idon't maintain *much* physical inventory. There are actually two parts tomy business: A brokerage part and a local service part. For the former, Imostly buy and sell, only rarely even seeing the products. However, fromtime to time I do buy overage when I get an especially good price. For thelocal service part of my business, I do stock about 35 part numbers.Basically, I sell from 3 accounts: Electronic components (broker side),Network Componets (local side), and Network Service (local side).My initial question refers to my immediate need to record completedtransactions, all, just by chance, from the broker side. I guess mythinking is to show inventory on all products, since I have inventory ofsome products. In a past life in a similar industry, I treated brokereditems this way, even though I maintained a substantial physical inventory.When I had to purchase something from another vendor for a sale, I wouldreceive the item into inventory against the PO, then pull it from inventoryfor the order. Although the item was just passing through, I treated it asinventory. In that case, at least, this simplified reporting.I would be interested in hearing about alternative ways to set this up.thanks,jm

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