Easy Tech TutsHow to Set Up Inventory in QuickBooks Online Step by Step Easily 2026
By Impran M N
Getting inventory set up correctly from the start saves headaches later when you're trying to track stock and cost of goods sold. This guide walks through the key steps for setting up inventory in QuickBooks Online.
01Turn on inventory tracking
Enable inventory tracking in your account settings if it isn't already active.
02Create an inventory item
Set up a new item as an inventory type, entering details like cost, sales price, and starting quantity.
03Assign the right accounts
Link the item to the correct income, expense, and asset accounts so transactions post correctly.
04Track stock as you buy and sell
Use purchase orders and sales forms tied to the item so quantities update automatically as you transact.
Frequently asked questions
Do I need a specific QuickBooks Online plan for inventory tracking?
Inventory tracking is typically available on higher-tier plans, so confirm your subscription supports it.
What's the difference between inventory and non-inventory items?
Inventory items track quantity on hand and cost of goods sold, while non-inventory items don't track stock levels.
Can I set a reorder point for inventory items?
Yes, you can set a reorder point so QuickBooks flags when stock is running low.
How does QuickBooks calculate cost of goods sold for inventory?
QuickBooks Online typically uses an average cost method to calculate cost of goods sold as inventory items are sold.
Watch the full walkthrough
The same steps, demonstrated on screen from start to finish.
