Square Inventory Questions

[DoggFish]

I am trying to bring more inventory tracking into Square. I have spent the last several days playing around with the platform and had a couple questions:

1. Is there an easy way to view your inventory balance in dollars, across all categories. When I go to "View Inventory by Category" it simply shows $0 for everything.

2. Will my "Unit Cost" adjust based on purchases and sales? Like if I buy 2 items at $10 each and then 2 items at $30 each, it will show $20? Or does it adjust based on LIFO, FIFO, blended average, etc.?

Thank you!

[Candlestore]

@DoggFish ;

Your inventory may show $0.00 for everything if your did not put dollar amounts in for any item.

You would need items with a Cost and with a Sales Price.  Since you are just playing around right now you are probably using the Free version.  In the paid version you can assign vendors and purchase price.  

When I sign in to my Square Dashboard and go to Reports-Inventory Reports-Projected Profits I can see a Total Inventory Value- Total Retail Value-Projected Profit -Profit Margin %

Here is a comparison of Square POS- Square for Retail (Free), Square for Retail (Paid):

https://squareup.com/help/us/en/article/5980-compare-square-for-retail-and-square-point-of-sale 

As for your 2nd question Square is more a Credit Card Processor, and does some inventory but the FIFO and LIFO reporting are more linked to accounting software.  So I have basically 2 sets of Inventory going, 1 in Square so I can Set a sale Price and scanning abilities at checkout. Then the secondary inventory is on my QuickBooks file which does the LIFO / FIFO inventory accounting and other financial information, such as building expenses, utility expenses, Insurance etc; which you can not do with Square.

[DoggFish]

Thank you for the reply - Very helpful. Makes sense regarding limitations within Square. 

I did have 1 follow up question though - If I was to receive additional inventory, how does Square account for it? Example: I had previously purchased 10 items of "Item A" at $8 / unit. So my inventory shows $80. What happens if I purchase another 10 items of "Item A" at $10 / unit? Will my inventory balance properly adjust from $80 to $180?

If so, I suppose I could do some blended accounting, similar to what you are doing. Track the inventory balance and units on Square, but then track the COGS side on QB.

Thanks again

[Candlestore]

@DoggFish ;

I have not entered most of my items in square with a cost, since I was tracking it in QuickBooks.  When I first started with Square, I entered the items, their quantity and my selling price only.  Did all my COGS in QuickBooks with better reporting of Accounting information.  Square does great with reporting my sales data, and lets me quickly get the data needed to pay my sales tax to my state.  Rounding errors do happen and I try to import to QuickBooks as much data as I can from my online sales and my in store sales, sometimes maybe more then I need.  The one main thing you need to realize when importing data to QuickBooks is that the name and sku are the same in both.  I even added custom item fields in my QuickBooks to add Categories, Variations etc.

Sorry I could not help with what your question was on adding new inventory at a higher price and how it would effect Squares COGS reporting.

[VINOme]

@DoggFish @Candlestore I'm interested in 3rd party apps for more robust inventory management. Haven't found any apps integrated with SRP. In particular, looking for bulk/case breakdown inventory. Currently, a 36PK case can be broken down into smaller units. When the smaller unit is sold such as a single or 6PK then the inventory is taken out of the 36PK rather than auto broken down or built up. Take a look at the Lightspeed definition. Is there a similar feature in SRP?

Lightspeed Creating Boxes 

Creating boxes

The box item type is helpful to use in scenarios where you buy an item by the case but you sell it by the case, in smaller packs or as a single. An example would be a case of 24 sodas that you might sell in packs of 12, 6 or individual cans as well. By creating a box to link the case to its packs and singles, their shared inventory is automatically broken down or built up when you checkout your customers. You can also manage your inventory manually beforehand if you prefer.

NOTE: A box needs to be made up of the same item. If a box is intended to be made up of different items, like a custom bicycle or gift basket for example, then this would be an assembly. 

[Candlestore]

@VINOme ;

Square has recently come out with a Feature Called Sell By Units.  Where I can have My tapper Candles sold by:

1- Tapper Candle  Individually

12 - Tapper Candles sold by Dozen Pack

144 - Sold by the Case Pack

Which all come out of the same Inventory Count.

Here is more information on this from Square:

7237-stock-conversion-sell-by 

[kristag]

Hello!  I am a product manager with Square's Inventory team.  We do have a FIFO model to assign costs.  So, for example, if you have 2 items at $10 each and then 2 items at $30 each.  The first items you sell will use the $10 cost to calculate profit margin and the second 2 will use the $30 cost.