As at when this post was published, we had just concluded a training and the Chart of Account cleanup for one of our clients in the telecommunication industry. They are a fast-growing smartphone and accessories enterprise whose finance is already being managed on the QuickBooks Enterprise. Of all of their challenges shared with us, the major concern was that they have outlets in different locations, both within and outside Lagos, but could not record inventory transfers in QuickBooks Enterprise when smartphones are issued from the warehouse to various sales outlet. The reason for this challenge is simple, it is simply because they were not subscribed to Advanced Inventory Module.
If you are familiar with QuickBooks Enterprise, you would know that there is a module called “Advanced Inventory”, which is an additional feature only available to subscribers. It has the added advantage of allowing you to effectively manage your inventories, set up multiple warehouses or locations, and record inventory transfers.
For a retail store with multiple warehouse or branches in different locations, inventory transfer is part of their operations as these sub-outlets expect what they sell to come from their head office, while the head office in turn records such in their book for proper accountability. Another major area is sales; considering the fact the branches are also meant to be profit centres, Management needs to track their sales performance. Categorization matters here as it will not be proper for all income earned to be treated under an account head.
The scenario painted here depicts my client’s needs. The QuickBooks Enterprise they are currently running is not subscribed to “Advanced Inventory Module” as they felt it was expensive; not because of the fee (which was $1400 for a user license), but the fact that it is a recurring bill that is not priced on a user license. Rather, it is priced on up to 30 concurrent users. Although, businesses running in Nigeria are affected by several challenges, such investment and expenses will help them get their accounting and financial management right, yet it is on the high side and it is deemed out of range for management’s budget.
Our team was invited to overhaul the challenge, and proffer a workable solution that will track inventory transfers, generate inventory report of each outlet and their sales figure on a real time.
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