Accounting & Bookkeeping & Small Business Forum

[Guest]

Does anyone know how to setup inventory for a restaurant in Quickbooks? The items bought by a restaurant are not sold as is but are "processed and then resold, like a manufacturer. Can Quickbooks handle this? Thanks

[Guest]

Simply setup an Other Current Asset Account called "Inventory" and set it up with a balance equal to the value of the inventory in stock. During the month, debit all purchases to the Cost of Goods Sold, and at the end of the month make one entry adjusting the inventory balance.

If you're a student of the Universal Accounting course, check out the practice set in Chapter Two of Module Two entitled "Stewarts". It will lead you through the process step-by-step.

[Guest]

Don,

From my point of view, I think we may use physical inventory system, all the goods purchased first recorded in the purchase account, all the sales recorded in the sales account(no cost of goods sold) and then do the stock take to update cost of goods sold and inventory.



Regards

Lucy