Transfer Inventory to Corporation as Shareholder loan

SergeiG · ‎March 05, 2024

Hello.

I worked as sole proprietor, and later opened a corporation and transferred the inventory into corporation as shareholder loan.

In QB Online Plus I shown this transfer by two transactions in different times – one is “Inventory Starting Value” and the second is “Bill”. As the result, both added the inventory into QB, but both of them affect on accounts wrong.

I would appreciate for advice how to fix both transactions, so that they should add inventory in items (but not as total amount) and affect on proper accounts:

1) “Inventory Starting Value” affected on the “Opening balance” account and changed it from 0, as it should be, to the amount of goods.

2) “Bill” added cost of goods to “Account payable”, but not to “Shareholder loan” account.

P.S. I know how to transfer Inventory to Corporation through Journal Entry, but it allows to enter the total cost of inventory. However, I need to transfer inventory in separate goods in pieces to use FIFO.

Thank you.

JamesM4 · ‎March 06, 2024

Hello SergeiG,

Welcome back to the Community. QuickBooks is a powerful program that helps you to manage your accounting with ease. I'll be glad to point you in the right direction so you can get back to doing what you enjoy.

Recording your transactions the right way is essential for ensuring your books remain accurate. That said, I recommend consulting an accounting specialist for expert advice. You can get in touch with an accounting professional using this link here. Other accounting professionals are able to see this post in the Community and this will allow them to chime in.

Let me know if this info helps. I'm here to steer you in the right direction.

SergeiG · ‎March 06, 2024

@JamesM4 Thank you for the advice.

I has an accountant, who works with another accounting SW than QB.

Let's simplify my question. Let's imagine that I would like to do may first transfer of goods as individual items (not a general amount) to corporation as shareholder loan.

What is the standard step-by-step procedure for it from QB point of view?

JamesM4 · ‎March 06, 2024

Thanks for getting back to me. To confirm, are you looking for ways to transfer the inventory using methods that go beyond the Journal Entry?

SergeiG · ‎March 06, 2024

Actually, Yes.

As I understand, if I use Journal Entry, I can enter only total amount of goods (Debit "Inventory Asset", Credit "Shareholder Loan"). But I worked with Advanced Inventory FIFO method, so I need to enter all my goods in pieces into QB.

Amanda-B · ‎March 06, 2024

Welcome back, SergieG.

As advised above, speaking with an accounting professional is the best course of action to ensure a positive outcome on your books. However, I will leave this thread open for other accounting professionals to share their expertise.

If there is any other questions, feel free to reach back out.

SergeiG · ‎March 06, 2024

@Amanda-B The accountant already described me how inventory amount should be reflected on Accounts.

However, I need the technical explanation of this procedure. Transferring inventory to corporation as shareholder loan isn't unique procedure, so I'm not the first person who faced with it. I believe that a technical solution is already designed and described by QB team.

Amanda-B · ‎March 06, 2024

Thanks for the quick reply, SergeiG.

In this case, I recommend reaching out to the support team outside of the Community for further assistance. You can reach them by following one of these methods:

Schedule a Callback or start a Chat: select (?)Help in the upper right > type and enter "Contact support" into the QB Assistant > click Contact Us > explain your situation > then hit Let's Talk > choose Get a callback or Start a Chat.

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Transfer Inventory to Corporation as Shareholder loan