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Set up stock after conversion

by Intuit Updated 4 months ago

Learn how to set up stock after converting from QuickBooks Desktop to QuickBooks Online.

Buying and selling products after you move from QuickBooks Desktop to QuickBooks Online impacts stock numbers. So it’s important to set up your stock right after conversion. In this article, we’ll show you the fouristep process to do that.

Note: Stock tracking is only available in QuickBooks Online Plus

Before you get started

There are a few things to know before you get started.

  • This guide is only for importing your stock into QuickBooks Online, not selling/tracking stock in QuickBooks Online. If you use a third party app that manages your stock under an accounting method other than FIFO, you'll want to check that app's solution.
  • Using QuickBooks Desktop for Windows 2015 or earlier? Before converting to QuickBooks Online, first download and install a trial version of QuickBooks Desktop for Windows 2016 or later. If you attempt to import using QuickBooks Desktop 2015 or earlier, your stock data will not be converted.
  • Using QuickBooks Desktop for Mac? If so, your stock information will not import into QuickBooks Online. You'll need to set up your stock from scratch in QuickBooks Online.

Step 1: Print an Stock Valuation Summary report

You can use the Stock Valuation Summary report to set up everything properly.

  1. Go to Reports (Take me there).
  2. Select the Stock Valuation Summary report.
  3. From the Dates drop-down, select All.
  4. Select Print.

Step 2: Print a Balance Sheet report

Printing a balance sheet report gives you an account balance before you make the changes.

  1. Go to Reports (Take me there).
  2. Select Balance Sheet.

Step 3: Set up your products and services

Your stock items will be imported to the Products and Services list. You may notice that your imported items will each have Stock Asset and COGS as sub-products. This is because QuickBooks Online tries to preserve accurate accounting of asset value and Cost of Goods Sold.

Note: Repeat the steps in the second and third sections below for each item to set up its quantity and cost.

First, turn on stock tracking.

  1. Go to Settings Settings gear icon., then select Account and settings.
  2. Select Sales.
  3. Select edit  in Products and Services.
  4. Make sure all the boxes are checked, including Track stock quantity on hand.
  5. Select Save, then select Done.

Next, update the quantity and cost of the items.

  1. Select Settings ⚙, then Products and services.
  2. Find the product you need to edit. Then select Edit in the "Action" column.
  3. If the item is not set up as an stock, select Change type. Then choose Stock.
  4. In the "Initial quantity on hand" field, enter the exact quantity from the Stock Valuation report (from Desktop).
  5. In the "As of date" field, enter the date the quantity on hand is effective.
    (Note: After the stock quantity and as of date are entered, no transactions prior to that date can be created.)
  6. In the "Cost" field, enter the product’s exact cost based on the Stock Valuation report (from Desktop).
  7. Select Save and close.

Lastly, delete Stock Asset and COGS sub-products.

  1. Select Settings ⚙, then Products and services.
  2. Find the product you just edited.
  3. Under it select the sub-products Stock Asset Account and COGS.
  4. Select Batch Actions. Then Make inactive.
  5. On the prompt that appears, select Yes.

Step 4: Offset the old stock asset account

After editing the products and services, a new account called "Stock Asset-1" will be created in QuickBooks Online as its default account. An account adjustment will need to be entered because of this. Use the Opening Balance Equity account as the offsetting account.

  1. Select + New.
  2. Select Journal Entry.
  3. In the first line, choose the old stock account.
  4. Enter its balance under Credit.
  5. In the second line, choose Opening Balance Equity.
  6. Enter an equal amount under Debit.
  7. Select Save and close.
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