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dal1cas2
January 24, 2019
Question

Balance Sheet Report in CASH basis, paid or unpaid inventory?

  • January 24, 2019
  • 12 replies
  • 31 views

On a Balance Sheet Report when run in CASH basis for Inventory Asset-1, does it show inventory whose invoice has been paid or unpaid? Currently it is showing both but I do not know which I am supposed to be resolving, the paid inventory or unpaid inventory?

12 replies

Alessandra_B
Level 5
January 24, 2019

Hi there, @dal1cas2.

 

Let me share with you the difference between Cash and Accrual basis of accounting and help you resolve your concern.

 

When you choose Cash basis, the report shows the income or expenses based on the payment date of your invoices and bills.

 

While the Accrual basis shows the income and expenses based on when you sent your invoices or got your bills.

 

When selecting the Accounting method for your reports, you need to click on Run report. But if you've already done it, try toggling it again and click on the Run report button. This way, your report gets updated. 

 

Feel free to read this article for further information: Choose Between Cash and Accrual Accounting Methods in Reports.

 

If there's anything you need help with, please let me know.

dal1cas2Author
January 25, 2019

Unfortunately this did not answer my question. What I need to know is when I run a Balance Sheet Report in Cash basis for Inventory Asset -1, should it show inventory that has been invoiced and paid or inventory that has been invoiced and unpaid? Right now it is showing both and neither & i even have an invoice in which only half of the inventory on it is showing. I need to which I need to work on resolving, the paid or unpaid inventory?

Malcolm Ziman
Level 4
January 25, 2019
@dal1cas2 wrote:

 

QBO does not show any inventory on hand for a cash basis balance sheet; it is all expensed when paid for. You should really keep books and file taxes on the accrual basis if you carry inventory. If you want to file on the cash basis, you will have to enter the closing inventory on hand manually in the tax return. But if you file schedule C, there is no balance sheet required, just a deduction of the ending on hand inventory from Purchases (and addition of last year's on hand).  You can run an accrual balance sheet to get the ending on hand inventory; but it should really be physically counted.

Not sure why you are mentioning "Inventory Asset -1". That may  indicate a set up problem. There should not be a 1

vpcontroller
vpcontroller
Level 7
January 25, 2019

@dal1cas2

 

In QuickBooks Online, on a Balance Sheet report when running in Cash basis for Inventory Asset account, it should not show any balance at all (the same way as Accounts Receivable account). If you're seeing the amount on a cash basis report for Inventory Asset account, there is something wrong with how the inventory transactions were entered in QBO. To review the details, you can click the balance amount you're seeing on the B/S for that account, and change the Report period of the report to "All Dates" and run the report.

 

I'd also suggest try it out on QBO demo test-drive file. It will show how it should work.
https://qbo.intuit.com/redir/testdrive/

 

Hope this helps!

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