Inventory. I think I made a big mistake.

Consider to create a new company file instead and migrate the trial balance from your old file. Then you can "modify" your inventory in the file.

Hi Annie H1,

QuickBooks Desktop is a powerful program that provides options in times like these.  When you need to make corrections to your inventory quantity or value, you can enter an inventory adjustment.  However, due to the complex nature of your issue, I suggest speaking with an accounting professional.  They will have the tools to make the necessary adjustments, and ensure a positive outcome on your books.  If you don't have an accountant, we can assist you with locating a ProAdvisor in your local area.

If you have any other questions, or concerns, please feel free to reach back out.  We would be happy to help!

I have had this Inventory Asset problem at the end of every year.  We end up with an "INVENTORY ASSET" at the end of each year showing on the balance statement (sometimes a positive # and sometimes a negative #).  WE DO NOT KEEP ANY INVENTORY but all of our "Items" are input as Inventory and as you know this can't be changed.   You talk about making an adjustment at the end of the year, which we do. But I have always had an issue of how to make this adjustment.  Right now we have made a journal entry to zero out the value of the "Inventory Asset" and then offsetting this always ends up as an "Expense" on our P&L which doesn't seem correct to me.  This shouldn't decrease our net income because the whole thing is only caused by QB and its quirks on the timing of inputting a sales order/invoice/bill/payment series.  It seems to me if the "Inventory Asset" is on the balance sheet the offsetting adjustment should be on the balance sheet.   But would it be, a Current Liability?  I just tried this as a test and it seems to accomplish what I needed - getting rid of a ghost INVENTORY ASSET without changing our P&L with an expense but just reducing our CURRENT LIABILITIES.  Do you see any harm in this?