Inventory Multiple Warehouses

We currently have a client who is currently using QB and is having a
tough time managing inventory (some fixable problems - some unknowns).
They have 2 warehouse location. They would like to have the ability to
view inventory by warehouse. One posting I came accross suggested
using sub-accounts of inventory asset account and post to each sub
account for which the inventory is located. This sound fine, but we
need to know how we would transfer inventory from one warehouse to
another? Are there complications when generating a sales order and
inventory must come from both warehouses? What other pitfalls will we
The client is pretty content with QB and would like to see if the can
continue to use it for at least another couple of years before moving
to a more traditional inventory management system. They are not
opposed to a 3rd party add-on but we are not familiar with any and
would entertain any recommendation. Keeping in mind they would want to
keep the cost low - otherwise you start to cost out of QB and into a
new system.
Eric - Foothills
Reply to
Foothills Accounting
We are doing it with sub items in the inventory list without sub accounts in the chart of accounts as management does not care about the total $ in either warehouse, just the total number of items. (We're not out of widgets again?!)
On the invoice or PO we just use the correct item / subitem code for that warehouse. When it gets split and you don't want to show that to the customer it is handy to have a blank group item about to hide all of that in. Yes these take a bit longer to type but are easy with cut and paste. PO's aren't a problem as you would have to group them by delivery address anyway.
To transfer inventory you do need to go single user and make an inventory adjustment. Easy as QB has a quantity difference mode in addition to a total count mode. Just make sure the client has transfer request forms that get back to accounting for entry.
That brings up the problem with two locations. The cost of each item in each warehouse will be different. So with every movement /
adjustment the total value won't be zero as the cost of the item will be different in the two different locations. You will have to advise your client how to handle this. Obviously moving an item shouldn't effect your total inventory value, unless you actually want to figure the freight cost of the movement and not expense that as an overhead. Once the quantity difference is in and if the value of adjustment isn't zero have them hit the check box for value adjustment and I assume you'll have them adjust the value of the receiving warehouse so the total transaction is zero.
I think that just about covers it.
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Golden California Girls

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