In ConnectBooks, inventory is managed through inventory files, each linked to a specific QuickBooks (QB) file. This setup mirrors your accounting structure and ensures clean, accurate tracking.
If your business uses multiple QuickBooks files—such as one per company or entity—you should create a separate inventory file for each. If you manage multiple companies within a single QuickBooks file, only one inventory file is needed.
This structure makes it easier to track intercompany transactions. For example, if Company A buys 100 units and transfers 50 to Company B:
It's recorded as a sale in Company A’s inventory file
And a purchase in Company B’s inventory file
While cross-entity transfers are generally avoided, this system keeps records clear when they do occur.
Separating inventory by QB file also simplifies month-end valuation. With one inventory file per entity, it's easier to generate accurate, consistent financial reports.