QuickBooks Small Business

QBO Now Tracks Reorder Points, Issues Stock Level Alerts

If you’ve taken a look at QuickBooks Online’s Products and Services list lately, you’ve no doubt noticed that some positive changes were made. In case you haven’t, let me give you some good news: QuickBooks Online is becoming more functional in the area of inventory management. For simple inventory needs, QuickBooks Online might be just the ticket for you or your clients.

Take a look with me. I’m in the QuickBooks Online test drive company, Craig’s Design and Landscape Services, accessible here.

Click on the Gear icon, and under Lists, select Products and Services.

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When I open the Products and Services list, I see something I never saw before: two large colorful icons at the top, warning indicators of low stock (orange icon) and out of stock (red icon).

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I can understand how QuickBooks Online can tell me if I’m out of a certain inventory item, but how does it know what “low stock” means to me? “Low stock” means different things for different items, and to different people. The answer is very simple: in addition to these two large icons, QuickBooks Online now allows me to set up each new inventory item or to edit each existing inventory item with a reorder point.

To be clear, QuickBooks Online defines a reorder point, available only in QuickBooks Online Plus, as follows:

A reorder point is the minimum quantity of a product you want to have on hand. To use reorder points, you simply tell QuickBooks how many of a particular product you always want to have in stock. When the quantity on hand drops at or below the reorder point, QuickBooks reminds you to order more.

For example, you sell a fantastic product called the Super Widget. It’s such a popular product that you want to be sure you have enough to meet customer demand. Judging from your sales volume, you know you need to have at least 100 Super Widgets on hand, so you set its reorder point to 100. When the quantity on hand falls to 100 or below, QuickBooks reminds you to order more.

To set a reorder point on an existing item, click on Edit in the Action column for a particular inventory item.

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Then, enter the Reorder point level you wish for this item, and then Save and Close.

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I’ve purposely used a reorder point that is less than the current quantity on hand to see what would happen. The orange Low stock icon at the top now indicates that one of my inventory items is low on stock (at the reorder point or less), and the quantity on hand for this inventory item now displays in orange to draw my attention to it:

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Now, let’s say I had a long list of items and a number of them were low on stock. To get a concise list of just those items, all I have to do is click on the orange Low stock icon at the top.

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Then, the Products and Services list will be filtered for just those items that fall into that category:

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About the author

Esther Friedberg Karp

Esther Friedberg Karp is an internationally-renowned trainer, writer, business consultant, and speaker who was named one of the Top 10 QuickBooks ProAdvisors in the world, with the title Top International ProAdvisor.

Based in Toronto, Canada, Esther has the unique distinction of holding ProAdvisor certifications in the United States, Canada, and the United Kingdom. She has authored materials and delivered educational and certification courses for Intuit in all those countries, as well as in Australia, where she conducted live QuickBooks Online training. She has spoken at Scaling New Heights, QuickBooks Connect, and other conferences, as well as at conferences of various accounting and professional organizations. She has also written countless articles for Intuit Global.

Esther counts among her clients companies from around the world, as well as accounting professionals who seek her out on behalf of their own clients for her expertise in various countries’ editions of QuickBooks Desktop and Online, as well as for her talent in customizing QuickBooks usage for different industries.

Esther holds a BSc from the University of Toronto in Actuarial Science and Mathematics, and an MBA in Marketing in Finance from York University’s Schulich School of Business.

She can be reached at esther@e-compubooks.com or 416-410-0750.

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