Learn how to set up inventory after converting from QuickBooks Desktop to QuickBooks Online.
Buying and selling products after you move from QuickBooks Desktop to QuickBooks Online impacts inventory numbers. So it’s important to set up your inventory right after conversion. In this article, we’ll show you the four step process to do that.
|Note: Inventory tracking is only available in QuickBooks Online Plus|
There are a few things to know before you get started.
You can use the Inventory Valuation Summary report to set up everything properly. Here's how to print it:
Printing a balance sheet report gives you an account balance before you make the changes. Here's how to print it:
Your inventory items will be imported to the Products and Services list. You may notice that your imported items will each have "Inventory Asset" and "COGS" as sub-products. This is because QuickBooks Online tries to preserve accurate accounting of asset value and Cost of Goods Sold.
|Note: Repeat the steps in the second and third sections below for each item to set up its quantity and cost.|
First, turn on inventory tracking.
Next, update the quantity and cost of the items.
Lastly, delete "Inventory Asset" and "COGS" sub-products.
After editing the products and services, a new account called "Inventory Asset-1" will be created in QuickBooks Online as its default account. An account adjustment will need to be entered because of this. Use the Opening Balance Equity account as the offsetting account.