Hi there, userbooknerdsbookkee.
Let me provide some information about the Inventory Asset account in QuickBooks Online (QBO). Then guide you on how to run the Inventory Valuation Summary or Inventory Valuation Detail reports to see all your inventory purchases.
When you buy an inventory item, your bill, check or credit card charge will debit the item’s Inventory Asset account and credit the Accounts Payable, bank or credit card account.
It is not debited to an expense account because it is an asset that you can sell in the future and input the expense to match the income. We can open any of the mentioned reports above and set the period to All Dates. This way, you can see the correct amount for your Inventory Asset account.
Here’s how:
- In QBO, head to the Reports menu on the left panel and enter Inventory Valuation Summary or Inventory Valuation Detail in the Search field.
- This action will open the report’s page.
- From there, go to the Report period section and click the drop-down to select All Dates.
- Click Run report to see the changes.
To learn more about these reports, you can read through this article: Use reports to see your sales and inventory status. You’ll also see other statements that will help get a better insight into the products you buy and sell, including the inventory status.
In case you encounter any issues with your inventory, the following reference contains solutions on how to resolve them: Fix negative inventory issues.
Reach out to me again if you have other questions about your inventory. I’ll get back to answer them for you. Have a good one
