Question – I have several inventory sites. When I move inventory from one site to another, how can I adjust the valuation of the inventory to account for transportation costs?

Answer – In QuickBooks one can adjust the valuation of inventory by using the Adjust Value/Quantity on Hand function. Go to Vendors – Inventory Activities – Adjust Quantity/Value on Hand. The upper left drop down, Adjustment Type, allows you to select the type of change desired. To adjust the value only, select Total Value from the Adjustment Type drop-down menu. Enter the new value of the inventory in the far right column. The Total Value of Adjustment will be recorded below this column. Be sure to select the correct account under Adjustment Account. If, for example, shipping inventory from one site to another has added $500 to the cost of the inventory. By selecting the appropriate account, Shipping Out Expense, for example, the additional cost will now be credited to Shipping Out Expense, the average cost per unit will now be appropriately increased and the additional cost will not be double-counted.

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Question – I have seminars based in 8 different locations across Michigan.  All the expenses are paid from my central location.  I want to track the revenue of each location separately.  Do I need to set up 8 companies (or 9 including my central location) to do this?

Answer – No.  QuickBooks has a great feature that lets you track revenue by class or in your case, by location.  Each of your locations would get a separate notation and this notation would be put on all revenues and expenses attributable to that location.  When you run your reports, you can generate a report that shows each class separately or a report that combines all your revenue and expenses, including your central location.  The first will let you see the revenue and expenses generated by each location and the later will let you see how your company is doing overall.

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QuickBooks Tip:  Working with more than one company?  Make sure you change the background colors of the companies so that they are very different.  This gives you a visual check that you are in the correct company for the work you want to perform. 

To change the background color of a company, go to Edit –> Preferences –> Desktop View and use the color scheme pull down menu to see your options. Selecting any option will show you the color in a preview format before you select it.  You have 15 choices in QB 2010 – some of them are very vibrant.

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