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joliver-takasho-
Level 1

Transferred to QBO together with new inventory system. The transfer of inventory has created a inventory adjustment in the PL. How do we treat this?

The entry is DR Inventory (balance sheet) and CR Inventory Adjustment (profit loss) Therefore for September we are showing a huge profit due to inventory adjustment. It has to be taken out of PL but I don't know where it goes. Any ideas?
Solved
Best answer September 02, 2021

Best Answers
IntuitAika
Intuit

Transferred to QBO together with new inventory system. The transfer of inventory has created a inventory adjustment in the PL. How do we treat this?

Hi joliver-takasho-,

 

It is important to have your data recorded correctly in QuickBooms Online. Due to the nature of this question, I would recommend you to consult an accounting professional to record correctly the adjustment on your inventory. You can go to our  Find-a-Pro-Advisor page to look for a certified accountant or bookkeeper for an expert advice: https://quickbooks.intuit.com/au/find-a-proadvisor/.

 

Feel free to message us back if you have any other questions. Have a nice day. 

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3 Comments 3
IntuitSheila
Level 4

Transferred to QBO together with new inventory system. The transfer of inventory has created a inventory adjustment in the PL. How do we treat this?

Welcome to the Community, joliver-takasho.

 

If the inventory adjustment created is not a valid entry, you can delete the adjustment. Here's how:

 

  1. Click on the Search or magnifying glass icon at the top right.
  2. Click on Advanced search.
  3. Click on Inventory Quantity Adjustment.
  4. Set other filters, and click on Search.
  5. Select the transaction.
  6. Click on More, and click Delete.

 

You can also run reports to view your products and services and inventory status in QuickBooks Online.

 

You may want to check this article to learn more about Adjust inventory quantity on hand in QuickBooks Online.

 

Drop a comment below if you need more help. I'll be around if you have further questions.

 

joliver-takasho-
Level 1

Transferred to QBO together with new inventory system. The transfer of inventory has created a inventory adjustment in the PL. How do we treat this?

Hi Sheila,

 

Thanks for responding so quickly.

We recently transferred to a new inventory management system and also went from Xero to QBO as QBO works better with the inventory system (Fishbowl)
We uploaded our inventory from the old system to Fishbowl so we have quantities and values.

As a result this created a DR entry in Inventory (balance sheet) and a CR entry in Inventory Shrinkage (profit loss). As a result we are showing a huge profit for September due to the CR entry in Inventory Shrinkage.
Its like a Inventory Adjustment entry but its for all our stock as it is bringing in the Inventory Opening balance.
I am sure this is not an uncommon occurrence when businesses transfer from one system to another however I don't know how to treat that entry in the PL
Best,
Justin


IntuitAika
Intuit

Transferred to QBO together with new inventory system. The transfer of inventory has created a inventory adjustment in the PL. How do we treat this?

Hi joliver-takasho-,

 

It is important to have your data recorded correctly in QuickBooms Online. Due to the nature of this question, I would recommend you to consult an accounting professional to record correctly the adjustment on your inventory. You can go to our  Find-a-Pro-Advisor page to look for a certified accountant or bookkeeper for an expert advice: https://quickbooks.intuit.com/au/find-a-proadvisor/.

 

Feel free to message us back if you have any other questions. Have a nice day. 

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