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VMR302
Level 2

Account management

When my small llc purchases a product that will be sold as is or part of a project, the cost of that product is put into an inventory account.  How do I move the amounts out of the Inventory (asset) account into an Income (revenue) account?  I cannot decrease the Inventory (asset) account while Increasing the Income (revenue) account with a Debit/Credit journal entry. Thank you

2 Comments 2
Rustler
Level 15

Account management

Journal entries do not work for inventory asset, and you should never use inventory asset in  any kind of transaction.

 

Use inventory adjust to lower the qty and cost of an item, select the adjustment account you need to when doing this

VMR302
Level 2

Account management

OK.  Thank you for your response

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