We recently opened our laundry business and are purchasing a lot of linens. Could you advise us on how to track inventory, especially when discarding stained towels?

Congratulations on the successful launch of your laundry business, Darlene29. I'd be glad to help you how to implement an effective inventory tracking system in QuickBooks Online (QBO).

Tracking inventory in QuickBooks Online is only available in QuickBooks Plus and Advanced subscription. If you have this subscription, you can accurately track your inventory in QBO and also you can set up your items as inventory items. This involves enabling inventory tracking in your account settings and adding each item with details such as name, SKU, sales price, and initial quantity on hand. 

Furthermore, to effectively track your inventory in QBO, first set up the items you purchase as inventory items. Next, for purchases made through vendors, use Purchase Orders (PO) and convert them to Bills when the goods are received. For cash purchases, record the transaction as an Expense or Check, ensuring that the items are already set up as inventory items in your system. Here’s a detailed breakdown of the process:

Turn On Inventory Tracking:

1. Log in to your QuickBooks account.
   
2. Go to Settings and Click Account and Settings.
   
3. Select the Sales tab.
   
4. Click Edit in the Product and Services.
   
5. Turn on Track quantity and price/rate and Track inventory quantity on hand.
   
   
6. Select Save and Done.

To add Inventory Items:

1. Go to Sales.
   
2. Select Product & Services.
   
3. Click New on the Products and Services page and select Inventory.
   
4. Enter details such as Item Name, SKU, Category, Class, Initial Quantity on Hand, and As of date.
   
5. Once done, click Save and Close.
   

Additionally, to record an inventory adjustment in QuickBooks Online (QBO), especially when discarding stained towels, you can use these steps:

1. Select + New from the top left.
2. Choose Inventory qty adjustment.
   
3. Enter the Adjustment date.
   
4. Choose the appropriate Inventory adjustment account from the dropdown menu.
5. Click Product to select the item you want to adjust (e.g., towels).
6. In the Quantity Adjustment, enter either a New quantity or a Change in quantity. For discarding towels, use a negative number to reflect a decrease.
7. Once done, click Save and Close.

By following these steps, you can accurately record inventory adjustments for stained towels in QuickBooks Online (QBO).

Moreover, I'm excited to share that our QuickBooks Live Expert Assisted is always ready to support you whenever you need help tracking and managing your inventory. With their experience and commitment to customers like you, they can offer valuable insights and best practices, ensuring that your financial management runs smoothly.

Lastly, I'll add these valuable articles to help you in managing your inventory products in QBO. Ensuring you can track accurately and efficiently in your inventory:

• Set up and track your inventory in QuickBooks Online.
• Save a customized report in QuickBooks Online.
  
  

I want to make sure your concern is fully addressed. If you have any other in tracking your inventory in QBO, keep me posted. The community team is always here to assist you.