What option must be enabled to track quantities on hand for inventory items?

Enabling inventory tracking is essential for businesses that need to monitor the quantities of inventory items on hand. When this option is activated in accounting software like QuickBooks, it allows the system to record and manage stock levels effectively. This means that every time inventory is purchased or sold, the software will automatically adjust the quantities on hand. This capability is crucial for maintaining accurate inventory records, which supports various business operations such as stock reordering, inventory valuation, and identifying discrepancies in stock levels.

Other options like service tracking, sales tracking, and expense tracking focus on different aspects of a business’s financial operations. Service tracking pertains to monitoring the services provided, sales tracking relates to sales performance and revenue generation, and expense tracking involves managing costs incurred by the business. None of these options provide the functionality necessary to directly track physical inventory quantities, which is why inventory tracking is the correct choice.