If your business deals with a high volume of products or operates across multiple warehouses, managing inventory efficiently is essential. Fortunately, QuickBooks Enterprise 2025 offers Advanced Inventory—a powerful, built-in solution that allows businesses to streamline inventory tracking with precision and control.
In this guide, we’ll walk you through how to set up and optimize Advanced Inventory in QuickBooks Enterprise 2025, so you can save time, reduce errors, and improve your bottom line.
What Is Advanced Inventory in QuickBooks Enterprise 2025?
Advanced Inventory is an add-on feature (included with the Platinum and Diamond subscriptions) that goes beyond the basic inventory management tools in QuickBooks. It enables you to:
- Track inventory across multiple locations
- Use FIFO (First-In-First-Out) inventory costing
- Manage serial and lot numbers
- Enable barcoding for faster data entry
- Monitor bin/shelf locations within warehouses
- Seamlessly sync with mobile inventory scanners
QuickBooks Enterprise 2025 improves upon past versions with enhanced user interfaces, smarter automation, and faster syncing capabilities.
Step 1: Ensure You Have the Right Subscription
Before setting up Advanced Inventory, make sure you’re using a QuickBooks Enterprise Platinum or Diamond plan. These plans include Advanced Inventory as part of the subscription. You can check this by going to:
Help > Manage My License > About QuickBooks
If you’re not on the correct plan, you’ll need to upgrade to access these features.
Step 2: Turn On Advanced Inventory
- Go to Edit > Preferences
- Select Items & Inventory from the left pane
- Click on the Company Preferences tab
- Check the box for Inventory and Purchase Orders are Active
- You’ll see an Advanced Inventory Settings button (if your subscription supports it)
- Click on it to open the Advanced Inventory setup window
Step 3: Configure Key Advanced Inventory Features
Once you’re in the Advanced Inventory settings, you can enable and configure the features your business needs. Here’s a breakdown:
1. Multiple Inventory Locations
This allows you to track items across various sites—like warehouses, stores, or trucks.
- Enable this by checking Multiple Inventory Sites is Enabled
- Add your locations under Lists > Inventory Site List
- Assign inventory items to a specific site when receiving, transferring, or selling
Tip: Use sub-locations like “Warehouse A – Shelf 2” for more granularity.
2. FIFO Inventory Costing
If you prefer FIFO over Average Cost, QuickBooks Enterprise 2025 makes it easier than ever to switch.
- Go to Edit > Preferences > Items & Inventory > Company Preferences
- Click Advanced Inventory Settings, then choose the FIFO tab
- Check Enable FIFO costing
Note: This change affects how QuickBooks calculates COGS (Cost of Goods Sold) and inventory values, so consult with your accountant before switching.
3. Serial and Lot Number Tracking
Great for products that require traceability, like electronics or food products.
- Go to the Serial/Lot Numbers tab in Advanced Inventory Settings
- Select either Track Serial Numbers or Track Lot Numbers
- When you receive items, you’ll be prompted to enter their serial or lot numbers
Use case: Quickly find defective batches or recall items by lot number.
4. Barcoding
This feature allows you to scan barcodes to add items to sales, purchase, and inventory transfer forms.
- Enable barcoding under the Barcodes tab in Advanced Inventory Settings
- Print or assign barcodes to items (automatically or manually)
- Use a compatible USB or Bluetooth scanner
Tip: Combine barcoding with mobile inventory devices for fast receiving and picking.
5. Bin Location Tracking
Need to manage inventory within a single site more precisely?
- Enable Bin Location Tracking within an inventory site
- Assign bins for each item during setup
- Use bins when picking, packing, and moving inventory
Example: You can track Item X in “Main Warehouse > Aisle 3 > Bin B4”.
Step 4: Set Up Your Items for Advanced Tracking
To fully leverage these features, you’ll need to update your inventory items.
- Go to Lists > Item List
- Double-click an inventory item to edit it
- Enter:
- Preferred location (site)
- Serial or lot number (if applicable)
- Bin location
- Barcode (optional)
Repeat this for each item or import them in bulk using Excel or CSV files via File > Utilities > Import.
Step 5: Use Inventory Transfers and Adjustments
Now that your system is live, here’s how to manage inventory movements:
Inventory Transfers:
Use this feature to move stock between locations.
- Go to Inventory > Transfer Inventory
- Select the source and destination sites
- Enter the items and quantities
- Save and print the transfer slip
Inventory Adjustments:
For losses, damages, or shrinkage.
- Go to Vendors > Inventory Activities > Adjust Quantity/Value on Hand
- Choose the item, site, and bin
- Enter the new quantity or value
Always provide a memo or reason for future reference.
Step 6: Run Advanced Inventory Reports
QuickBooks Enterprise 2025 includes new and improved inventory reports that support all the advanced features:
- Inventory Valuation Summary by Site
- Inventory Stock Status by Location
- Serial Number/Lot Number Tracking Reports
- Bin Location Reports
Access these from Reports > Inventory or customize them using the new report builder.
Step 7: Sync with Mobile Inventory Devices (Optional)
If you use handheld scanners or mobile apps, QuickBooks Enterprise 2025 integrates smoothly via:
- QuickBooks Warehouse Manager App (included in Platinum/Diamond)
- Barcode scanning for receiving, picking, and cycle counting
- Real-time syncing with your desktop data
This helps streamline warehouse operations and reduce manual entry errors.
Final Tips for Success
- Train your team on inventory processes and barcode scanning
- Back up your data before making big changes like switching to FIFO
- Use the Audit Trail and Inventory Adjustment History for accountability
- Regularly reconcile inventory and cycle count to maintain accuracy
Conclusion
Setting up Advanced Inventory in QuickBooks Enterprise 2025 may take a bit of upfront effort, but the long-term payoff is significant: smoother operations, better accuracy, and faster decision-making. Whether you manage a single warehouse or a multi-site enterprise, these tools are designed to scale with your business
