When it comes to tracking finances and inventory, QuickBooks Online is a trusted and widely-used tool. However, one area where it may fall short for some businesses is in the realm of lot tracking. While QuickBooks does offer some serial number tracking features, its lot tracking capabilities may not be sufficient for those who need to track perishable inventory or manage large quantities of products.
We've looked into the limitations of QuickBooks lot tracking and found that it may not be able to meet the needs of every business. Without proper serial tracking or lot number management, it can be difficult to track inventory effectively and ensure that you're meeting customer demands. That's where alternative solutions like Katana manufacturing software come in - with advanced features specifically designed for managing inventory and production processes.
What is a serial number and lot number?
Serial numbers and lot numbers are unique identification numbers assigned by manufacturers to their products. The serial number identifies a specific manufactured product, while the lot number tracks materials used in the production of the product. Both serial and lot numbers are important for tracking warranty and service issues, as well as enabling product recalls and handling perishable inventory.
In batch tracking, all products with similar properties are assigned a specific common properties lot tracking number. This is an essential tool for modern manufacturers to avoid faulty products reaching customers. With QuickBooks serial number and lot number tracking feature, you can optimize your production workflow. We've covered how to learn about this feature in our pro tip blog post.
By using an integrated Shopify manufacturing software, you can manage multiple Shopify stores with ease. Our Shopify tools include a lot tracking system that allows you to track expiration dates and quickly identify defective items back to their lots. This is an essential tool for supply chain management and avoiding costly errors in production.
Optimizing Xero tracked inventory for batch and expiry tracking
When it comes to inventory management, keeping track of expiry dates is crucial. With Xero tracked inventory, you can easily manage batch numbers and expiry dates for your products. This feature enables you to keep track of when a product was manufactured, when its shelf life expires, and how much of it remains in stock.
To optimize your Xero tracked inventory for batch and expiry tracking, consider using 3rd party manufacturing software. This software can help you automate the process of tracking batches and their respective expiry dates. By integrating with Xero's inventory management system, this software can automatically update your inventory levels as batches expire or are consumed.
Overall, optimizing your Xero tracked inventory for batch and expiry tracking is key to avoiding waste and improving your bottom line. By keeping track of when products were manufactured and when they expire, you can ensure that you're only selling fresh products to your customers. And by using 3rd party manufacturing software, you can simplify the process of tracking batches and keeping your inventory up-to-date.
The limitations of using QuickBooks Online for inventory management
QuickBooks Online is a fantastic tool for bookkeeping and financial management, but when it comes to inventory management, there are some limitations. One of the major drawbacks is that QuickBooks Online does not offer comprehensive inventory tracking including expiration date tracking, which can be crucial for businesses dealing with perishable goods.
Furthermore, while QuickBooks offers some basic inventory tracking features such as tracking quantities and costs, it may not have all the necessary features needed for businesses with complex inventory needs. This is where 3rd party integrations come into play. QuickBooks lot tracking can be enhanced by integrating with other software solutions that specialize in inventory management. So while QuickBooks Online may be great for managing finances, it may not be the ideal solution for businesses with extensive inventory requirements.
1. Inventory tracking in QuickBooks
QuickBooks online inventory management provides a lot tracking feature that helps businesses keep track of their inventory types such as raw materials and finished goods. However, quickbooks online lot tracking doesn't include all the advanced inventory management features needed for businesses with multiple locations, drop shippers or high order volume increase. To overcome these feature gaps, an alternative method is to use a spreadsheet alongside QuickBooks Online.
For businesses that need robust supply chain management, 3rd party integrations can be used to perform advanced inventory and order management. QuickBooks order management can optimize processing tools such as contact management and open orders. Pro tip: QuickBooks online lot tracking allows businesses to easily locate products within their system but may not be sufficient for those requiring multi-location inventory tracking or manufacturing costs.
2. No multiple warehousing option
If you're a business that needs to track inventory for multiple warehouse locations, you may be disappointed to find out that QuickBooks Online Lot Tracking doesn't offer this option. This can make it difficult to monitor inventory levels and splitting items across different warehouses can become a complicated workaround.
However, this shouldn't deter you from using QuickBooks Online Lot Tracking altogether. When your business starts to grow and requires multi-location inventory management, integrating QuickBooks Online Lot Tracking with other software solutions can help you achieve the functionality you need. Plus, having accurate tracking of inventory is crucial in case of a product recall or other unforeseen events.
3. Doesn’t support manufacturing
Manufacturing industries require specialized software to handle their inventory management needs. Unfortunately, QuickBooks Online isn't built for this market specifically. Lot tracking, materials BOMs, production planning and scheduling functions are all needed features that QuickBooks Online doesn't support out of the box.
While there are 3rd party integrations available to add some functionality, the lack of advanced features makes QuickBooks Online difficult to use for handling perishable goods and raw materials inventory management. And in case of a product recall, QuickBooks Online lacks necessary product recall functionalities. Therefore, it's safe to say that QuickBooks Online isn't fit for manufacturing companies looking for lot tracking and other advanced manufacturing functionalities.
4. QuickBooks Online is designed for accounting
QuickBooks Online is designed as a general accounting software, with its primary function being to manage financial transactions for various business types. However, QuickBooks also offers extra functions that cater to specific needs of businesses, such as the QuickBooks lot tracking feature.
QuickBooks lot tracking allows businesses to track inventory by assigning unique lot numbers to batches of products. This is particularly useful for businesses that deal with perishable goods and need to manage expiration dates or recall processes. While QuickBooks may not have all the manufacturing management tools required for assembly line production, it does offer specialized features like lot tracking that can be beneficial for a wide range of industries.
How to connect QuickBooks to Katana
Katana offers a 14-day free trial for those who want to connect QuickBooks to their system. To sign-up and integrate QuickBooks, firstly head over to katana.com and start testing the waters with their free trial. Once signed up, head to the settings screen in Katana and click on the Connect button next to the QuickBooks account.
Next, set-up your QuickBooks account including tax rates, importing customer and supplier details, and any other necessary information. This will ensure that when you select automated manufacturing or QuickBooks online lot tracking processes within Katana, all of your data will be accurately represented in both systems.
Finally, configure your QuickBooks account by selecting it from the drop-down menu on the settings screen. From there, you can choose which data you want to sync between Katana and QuickBooks online lot tracking. With these steps completed, you are ready to streamline your business processes by connecting two powerful platforms together!
Third-Party Lot Tracking Solutions
While QuickBooks Online integrates with many inventory management vendors, its tracking abilities fall short for businesses that require more complex manufacturing or wholesale distribution industries. However, third-party solutions can handle lot tracking and provide advanced inventory module capabilities that integrate with your existing QuickBooks system.
Business models that require a robust lot tracking solution may find that ERP solutions or warehouse management systems like Fishbowl Inventory offer strong lot tracking solutions. These third-party integrations can provide more detailed inventory management and track inventory down to the smallest units, all while integrating with your current QuickBooks Enterprise setup.
In conclusion, while QuickBooks Online offers some basic lot tracking capabilities, it may not be sufficient for businesses needing more advanced features. Fortunately, third-party integrations like Fishbowl Inventory or other warehouse management systems offer the necessary tools to handle complex inventory needs. By exploring these options, you can take advantage of their robust features while still maintaining your existing QuickBooks system.
Frequently Asked Questions
What is lot tracking in QuickBooks Enterprise?
Lot tracking in QuickBooks Enterprise is a feature that allows you to track inventory items by their unique lot or batch numbers. This helps you to easily manage your inventory and ensure that you are selling products with the correct expiration dates, quality, and quantity.
How to account for inventory shipping costs in QuickBooks?
To account for inventory shipping costs in QuickBooks, you need to create a new expense account and allocate the shipping costs to that account. You can then assign the cost to the appropriate inventory items using item receipts or bills.
Can You track perishable inventory in QuickBooks?
Yes, QuickBooks has a feature that allows you to track perishable inventory by setting up an expiration date for each item. This helps you keep track of stock levels and minimize waste.
What are the limitations of using QuickBooks Online for inventory management?
QuickBooks Online has limited inventory management features, such as the inability to track inventory levels and costs per item in real-time, which may not be suitable for businesses with complex inventory needs.
How do you enter inventory in QuickBooks?
To enter inventory in QuickBooks, go to the "Products and Services" tab and select "New Item". Then choose the appropriate type of item (inventory or non-inventory) and fill out the necessary information such as SKU, cost, and price.