How Do You Calculate Beginning and Ending Inventory In QuickBooks?
                     How Do You Calculate 
Beginning and Ending 
Inventory In QuickBooks?
By Dancing Numbers
Many businesses need to purchase products from 
vendors and enter them into their inventory. This can 
be accomplished through purchase orders. QuickBooks 
Online gives you the ability to manage purchase orders 
so that you can pay your vendors and update your 
inventory. The basic formula for beginning inventory is: 
Beginning inventory + net purchases – COGS = ending 
inventory. Your beginning inventory is the last period's 
ending inventory. The net purchases are the items 
you've bought and added to your inventory count.
Inventory Basics
Inventory is an important part of 
any business. It represents the 
number of goods that are available 
to be sold and helps businesses 
predict future sales. When 
calculating inventory, businesses 
usually begin by estimating how 
much product they will need to sell 
in the current year.
How to Calculate Beginning Inventory?
There are a few methods you can use to calculate your beginning inventory. The 
most common way how to calculate beginning inventory is to subtract your sales 
from your purchase total. This will give you the number of items you sold that were 
new or unused.
Another way to calculate your beginning inventory is to subtract your purchase total 
from the current count of items in stock. This will give you the number of items you 
have that are new or unused.
How to Calculate Ending Inventory in QuickBooks?
• There are a few methods you can use to calculate your ending 
inventory. The most common way is to subtract the total of all the items 
in your current inventory from the total of all the items you have ever 
sold.
• Another way to calculate your ending inventory is by using a formula. 
The equation for this method is:
• Ending Inventory = (C+I) - (S-F)
• Where: 
•  C = Total Current Inventory 
•  I = Total Inventory at Beginning of Year 
•  S = Sold Inventory at End of Year 
•  F = Starting Inventory
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