Quickbooks Support Number 1-800-223-0070

TOLL FREE NUMBER 1-800-223

Inventory tracking affects both your balance sheet and profit & loss reports. QuickBooks technical support helps you to track those affects and work accordingly.

Please note: Inventory management is only enabled in QuickBooks Online Plus.

Impacts of Inventory Tracking on Balance Sheet

The Inventory Asset accounts are associated with your inventory-enabled service/product items and are always shown in the Balance Sheet. You can find inventory asset accounts grouped under Other Current Assets. The cost of your current (unsold) inventory is shown in the asset balance. In case your business operates on the basis of cash, change the accounting method to accrual and customise your Balance sheet report to see the above mentioned balances.

Impacts of Inventory Tracking on Profit & Loss Account.

Sales of Product Income accounts and the Cost of Goods Sold (COGS) accounts are associated with the inventory enabled Product/service item; these two accounts are shown in the P& L account. The Income and Expense section displays the COGS accounts in a separate section of the report. The Gross Profit line shows the difference between your Total Income amount and your Total COGS amount. In case your business operates on the basis of cash, you need to customise the P&L report and change the accounting method to Accrual after which you can see the correct Gross Profit amount.