How to Set Up Advanced Inventory in QuickBooks Enterprise 

Advanced Inventory in QuickBooks Enterprise allows businesses to track inventory across multiple locations, manage bin locations, use barcode scanning, and implement FIFO costing. Setting it up correctly ensures accurate inventory tracking and efficient stock management. Follow this step-by-step guide to enable and configure Advanced Inventory properly. 

Step 1: Enable Advanced Inventory in QuickBooks Enterprise 

1. Open QuickBooks Enterprise and switch to Single-User Mode (File > Switch to Single-User Mode). 

2. Go to Edit > Preferences > Items & Inventory. 

3. Click the Company Preferences tab. 

4. Check Inventory and purchase orders are active. 

5. Click Advanced Inventory Settings and check Multiple Inventory Sites is enabled. 

6. Select an inventory site from the dropdown when prompted. 

7. Click Continue > OK to save changes. 

Step 2: Set Up Inventory Sites 

Inventory sites represent different warehouses, trucks, or locations where inventory is stored. 

1. Go to Lists > Inventory Site List. 

2. Click the Inventory Site button and select New. 

3. Enter the site details (e.g., name, description, location). 

4. Click OK. 

5. Repeat for all inventory sites. 

Step 3: Convert from a Previous Inventory Tracking Method 

If you previously tracked inventory outside QuickBooks or using sub-items or classes, follow these steps to ensure accurate site-based tracking: 

• If using external software: Run a report listing inventory at each site. 

• If using sub-items for locations: Adjust inventory counts and merge items into a single listing per SKU. 

• If using class tracking for locations: Stop using this method and reassign inventory to new sites in QuickBooks. 

Note: Adjust inventory levels carefully to prevent discrepancies. 

Step 4: Set Reorder Points for Each Site (Optional) 

1. Go to Lists > Inventory Site List. 

2. Click Activities > Set Reorder Points. 

3. Select a site from the dropdown. 

4. Enter reorder points for each item. 

5. Click OK to save changes. 

Note: Each site’s reorder point is independent and does not roll up into a global reorder point. 

Step 5: Transfer Opening Inventory Quantities to Sites

Once Advanced Inventory is enabled, QuickBooks initially assigns all stock to a default site. You must transfer inventory to actual sites: 

1. Go to Inventory > Transfer Inventory. 

2. Set Transfer from as the default inventory site. 

3. Set Transfer to as the actual site. 

4. Select inventory items and enter transfer quantities. 

5. Click Save & Close. 

Tip: If transferring the same items to multiple sites, duplicate inventory transfers for efficiency. 

Step 6: Configure Additional Advanced Inventory Features 

Bin Locations Tracking 

• Navigate to Edit > Preferences > Items & Inventory > Advanced Inventory Settings. 

• Click Bin Locations and enable the feature. 

• Assign bin locations for each inventory item. 

Serial or Lot Number Tracking 

• Navigate to Advanced Inventory Settings. 

• Select Enable Lot or Serial Numbers. 

• Assign serial or lot numbers to inventory items. 

Barcode Scanning 

• Connect a barcode scanner to your system. 

• Navigate to Advanced Inventory Settings > Barcode Scanning. 

• Enable barcode tracking and assign barcodes to items. 

Best Practices for Using Advanced Inventory

• Regularly audit inventory levels to ensure accuracy. 

• Train employees on multi-location inventory tracking. 

• Use barcode scanning to minimize manual data entry errors. 

• Assign FIFO costing for accurate cost tracking. 

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