Managing growing stock across multiple warehouses, tracking lot numbers, and calculating true landed costs can quickly turn manual spreadsheets into an operational bottleneck. QuickBooks Enterprise Advanced Inventory solves this by giving wholesale distributors and CPG brands robust inventory control—including multi-location tracking, FIFO costing, and barcode scanning—without the six-figure price tag of a legacy ERP. Activating and configuring these settings correctly ensures your accounting ledger accurately reflects physical warehouse stock, eliminating inventory discrepancies and fulfillment delays.
This step-by-step guide walks you through setting up every module in QuickBooks Enterprise Advanced Inventory to streamline your warehouse operations and establish a solid foundation for real-time order management.
Prerequisites: What You Need Before Starting
Before configuring Advanced Inventory, ensure your system meets the necessary software and administrative requirements:
- Software Edition: An active subscription to QuickBooks Enterprise Platinum or Diamond edition.
- User Rights: Full administrative rights to the QuickBooks company file.
- System Mode: Access to Single-User Mode during the initial setup process.
- Active Internet Connection: Required to sync your Intuit license data and register the Advanced Inventory module.
How to Enable Advanced Inventory Settings
Step 1: Switch to Single-User Mode
Changes to inventory accounting preferences affect the entire company database.
- Ask all active users to save their work and log out of QuickBooks.
- Click File in the top menu bar.
- Select Switch to Single-user Mode.
Step 2: Access Company Preferences
- Navigate to Edit in the top menu bar and select Preferences.
- On the left sidebar, click Items & Inventory.
- Select the Company Preferences tab at the top of the window.
Step 3: Activate Advanced Inventory
- Click the Advanced Inventory Settings button on the right side of the preferences tab.
- If the button is greyed out: Go to Help > Manage My License > Sync License Data Online to ensure your Platinum or Diamond tier is recognized by Intuit.
- Check the box to activate your Advanced Inventory features and click OK.
Key Features to Configure in Advanced Inventory
| Feature | What It Does | Best For |
|---|---|---|
| Multi-Location Tracking | Tracks stock across multiple warehouses or trucks. | Distributors with regional warehouses or DSD fleets. |
| Bin Location Tracking | Pinpoints exact locations (aisle, shelf, bin) of items. | Large warehouses needing faster picking and packing. |
| Serial / Lot Number Tracking | Tracks items from purchase to sale by lot or serial number. | CPG, Food & Beverage, or electronics distributors. |
| FIFO Costing | Calculates COGS based on the oldest inventory first. | Businesses facing fluctuating supplier prices. |
| Barcode Scanning | Speeds up inventory counts and order fulfillment. | Any warehouse looking to reduce manual entry errors. |
| Landed Cost | Includes shipping, duties, and insurance in product cost. | Importers and businesses with high shipping costs. |
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1. Multiple Inventory Sites (Multi-Location Tracking)
Track inventory across multiple physical locations, transit trucks, or consignment sites.
- In Advanced Inventory Settings, select the Multiple Inventory Sites tab.
- Check Enable Multiple Inventory Sites.
- Click List > Inventory Site List to build your locations (e.g., Main Warehouse, Truck 101, Secondary Warehouse).
- Assign default inventory sites to specific sales reps, purchase orders, or invoice templates.
2. Bin Location Tracking
Organize your warehouses down to specific aisles, racks, and bins to optimize picking speed.
- Select the Bins tab within Advanced Inventory Settings.
- Check Enable Bin Location Tracking.
- Choose your preferred sorting format (e.g., Aisle-Shelf-Bin).
- Assign default bin locations to your inventory items in the Item List.
3. Serial or Lot Numbers Tracking
Essential for Consumer Packaged Goods (CPG), Food & Beverage, and pharmaceuticals that require expiration date tracking and recall readiness.
- Select the Serial/Lot Numbers tab.
- Choose Track Serial Numbers or Track Lot Numbers.
- Set enforcing rules: Require lot/serial numbers when items are received, transferred, or sold.
- Enable Warn me when an item is expired if managing perishable inventory.
4. FIFO Costing Method
Switching from Average Costing to First-In, First-Out (FIFO) provides a more accurate valuation of inventory and Cost of Goods Sold (COGS).
- Select the FIFO tab.
- Check FIFO Costing.
- Select the starting date for FIFO calculations.
Important: Create a complete backup of your company file before enabling FIFO, as this changes your financial reporting calculations permanently.
5. Mobile Barcode Scanning
Integrate Android-based mobile devices or dedicated barcode scanners directly into your warehouse operations.
- Select the Barcode Scanning tab.
- Check Enable Barcode.
- Map barcode fields to custom item fields or manufacturer UPC numbers.
- Pair your mobile warehouse scanners to manage sales order fulfillment, receiving, and cycle counts.
6. Landed Cost Tracking
The integration of mobile barcode scanning in QuickBooks Advanced Inventory significantly improves the efficiency of inventory management. Using mobile devices for barcode scanning streamlines data entry and reduces errors. This feature supports wireless or wired devices and is compatible with EAN-13 and Code-128 barcode formats, making it a versatile tool for any business.
Data Cleanup & Migration Best Practices
To prevent system errors and data corruption when enabling Advanced Inventory, execute these cleanup steps:
- Purge Duplicate SKUs: Standardize your Item List so that one master SKU represents a product across all warehouse locations, rather than creating separate SKUs per location.
- Perform a Physical Stock Count: Reconcile physical inventory quantities before mapping items to new bin locations or warehouses.
- Establish Reorder Points per Site: Set site-specific minimum and maximum stock thresholds to ensure automated purchase orders trigger accurately for each warehouse.
The Missing Link: Limitations of QuickBooks Advanced Inventory
No Mobile Field Sales App
Limited B2B eCommerce Capabilities
Inefficient Direct Store Delivery (DSD) Routing
How Orders In Seconds (OIS) Completes Your QuickBooks Setup
Orders In Seconds (OIS) bridges the gap between your QuickBooks Enterprise back-office accounting and your field sales operations through seamless, real-time integration.
- Live QuickBooks Inventory in the Field: The OIS Pro App syncs directly with QuickBooks Enterprise, giving sales reps instant visibility into stock levels across all Advanced Inventory sites—even without an internet connection.
- 24/7 B2B eCommerce Portal: Give wholesale buyers a dedicated storefront (OIS eCommerce) where they can place orders that flow automatically into QuickBooks Enterprise as sales orders or invoices.
- End-to-End Direct Store Delivery: Streamline route sales, mobile invoicing, and inventory reconciliation on delivery trucks with OIS Delivery, syncing settled routes back to QuickBooks instantly.
Frequently Asked Questions
-
Does QuickBooks Enterprise automatically include Advanced Inventory?
Advanced Inventory is built directly into QuickBooks Enterprise Platinum and Diamond subscriptions. It is not available in the Silver tier or QuickBooks Pro/Premier editions.
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Can I switch back to Average Costing after turning on FIFO?
You can disable FIFO in Company Preferences to return to Average Costing, but historical FIFO calculations recorded during that period will remain in your audit trail. Always create a backup before switching costing methods.
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Does QuickBooks Advanced Inventory support mobile offline order taking for sales reps?
No. Native QuickBooks barcode and inventory workflows require an active network connection inside the warehouse. To enable mobile offline order processing for field sales reps, you must pair QuickBooks with a B2B integration platform like Orders In Seconds.
Maximize QuickBooks with OIS Inventory Integration
Equip your field sales reps, warehouse staff, and B2B customers with real-time access to your QuickBooks inventory. Schedule a free demo with Orders In Seconds to see how our native QuickBooks integration automates your entire sales and inventory pipeline.
