Is anyone having issues with accurate inventory valuation reporting using the cash balance sheet? Is there a work around? Data is pulling correct on the accrual Bal sheet

Glad to have you here in the Community, anna112.

I understand the importance of having accurate data for your reports.

In QuickBooks Online (QBO), COGS is realized upon invoice payment when using the cash basis, eliminating the need for an inventory asset. Also, there's no inventory asset on a cash basis since it'll be automatically recognized as expenses upon product purchase. With Accrual, COGS is realized regardless of invoice status, and the inventory asset account decreases accordingly.

Additionally, the difference between cash and accrual reports lies in how transactions are recorded and reflected in financial reports. Cash basis reports reflect transactions based on when money is received or paid out. Here is the list of transactions to show in the cash basis report:

• Income is recorded upon receipt of payment.
• Record expenses when payment is made.
• Transactions involving cash payments or receipts.

Accrual basis reports reflect transactions when earned or incurred, irrespective of cash timing. Here's the list of transactions shown in accrual basis reports:

• Income is recorded when it is earned, regardless of when payment is received.
• Record expenses when they are incurred, regardless of when payment is made.
• Transactions that are recognized before any cash exchange occurs, such as accounts receivable or accounts payable.

If your data still appears incorrect, I suggest contacting our Customer Support Team for additional assistance in identifying and resolving the issue.

Furthermore, you can run reports to give you a snapshot of your business. Then, personalize them to focus on the details that matter most to you.

I'm always here if you need more help getting the balanced data your business needs. It's always a pleasure to help.

I've checked all of your recommendations along with an online Quickbooks agent twice, they could not figure it out, and it's not working.  As mentioned the accrual balance sheet inventory balances are correct and reflect all transactions.  The cash balance sheet only reflects the opening inventory balance and doesn't list all of the transactions.  It's believed to be a coding issue of some sort.  Quickbooks notified me that it has been an issue for other clients as well and they were working on it, but that was a month ago....

Hi there, Anna112. 

I appreciate you returning to the thread and giving us more information regarding the steps taken to solve the issue with the accurate inventory report of the cash balance sheet using your QuickBooks Online (QBO).

As you've mentioned above, you've had a conversation with two of our QuickBooks agents twice, and they've provided details regarding the matter. Furthermore, I recommend contacting our live support team again, they will provide you with updates and an adequate resolution to this matter.

To reach our support team, you can follow the steps below:

1. Log in to your QuickBooks Online company.
2. Click Help (?).
3. To get started, select one of the tabs:

• Assistant: Get quick, personalized answers by selecting a suggestion or typing a question. Talk to a human for further help.
• Search: Search the QuickBooks Online knowledge base directly, or select Contact Us and choose a way to connect with us:
• Start a chat with a support expert.
• Get a callback from the next available expert.

In addition, find out more about the frequent errors in the QBO account inventory by clicking on this article: Common QuickBooks inventory accounting mistakes. 

Don't hesitate to ask if you have further regarding the inventory report in QBO. Leave a comment below, and I'll answer them in no time.

I appreciate the feedback but all of that has been checked out and the inventory valuation is still not accurate on the 'CASH balance sheet report.  Again, it is accurate on the accrual balance sheet report.  The cash balance sheet report is pulling the 1/1/2023 load in and no transactions recorded.  However, the accrual balance sheet pulls all of 2023 transactions.  Three QBooks team members have gone online with me to take a look and they agreed that is a QBooks issue and they were going to do a ticket.  One Qbooks person told me that there were others having the same problem and the technical team was looking into it.   No one ever gets back to me.  This morning I had an appointment for another call with a QuickBooks person and cancelled another appointment because of the importance of this matter but they Qbooks person never called me at the agreed upon time.  I am pretty system savy and to say the least, quite disappointed in the service level, follow-up, and technical support.  

I have the exact same issue.  When the balance sheet is run on a cash basis it only shows the beginning balance and nothing else.  Running the balance sheet on an accrual basis shows all the activity for the year and an accurate balance. 

Still does not track my inventory accurately. I was on the phone with the quickbooks team for nearly 2 hours. and it is an open investigation. It is why I upgraded I e to track my inventory and show it on my balance sheet as required by those I report to. 

In addition to my previous reply, inventory valuation reporting has been an issue for those converting from the desk top platform to the online platform (as quickbooks agent informed me) and Quickbooks help team advised that issue has been resolved. However I just joined the online platform only in 2023. the online platform cash basis balance sheet shows the loaded in inventory balance valuation effective 1/12023  on the report. But it doesn’t reflect the transactions that were recorded throughout the year. So it is not pulling inventory assets  correctly. The inventory option is considered an upgrade and why we upgraded in the system but not working correctly. This is an open investigation via quickbooks. I will keep those interested posted but would encourage anyone else in this forum having this issue to also report the issue with the customer service team so they can pass along to the engineers who study the pattern and look for resolution. 

I'm wondering if there have been any developments or solutions regarding this issue.

Could you please provide an update here?

I'm encountering problems with inventory valuation on a cash basis, while it seems to be functioning correctly for accrual basis. Your prompt response would be greatly appreciated.

Thank you!

Thank you for joining the thread, Vishvajeet-smboo. I am here to assist you with getting updates on the progress of the issue you are facing with the accurate inventory report of the cash balance sheet while using QuickBooks Online (QBO). 

Upon checking, I found out that an investigation is currently underway with reference number INV-102332. Our product engineers are working hard to find a permanent solution for this problem, and your feedback is valuable in helping us work towards a resolution. As of the moment, we do not have a timeline for when the issue will be resolved. However, we understand the urgency of the matter and I want to assure you that we are working tirelessly to fix it as soon as possible. 

To stay updated on the issue, I suggest that you contact our support team and request to be added to the list of affected users. They have the necessary tools to provide you with notifications on the progress of the case. Here's how to get in touch with our support team:

1. Log in to your QuickBooks Online account.
2. Click Help (?).
3. Type in "Talk to a human," then press Enter.
4. Select Contact Support Team.
5. Type again Talk to a human and click Contact Support Team.
6. Choose a way to connect with us.

Our support team will keep you updated with the latest information via your email address regarding this.

I will also be including this article for your future reference to save you time in the future when creating and personalizing forms: Customize invoices, estimates, and sales receipts in QuickBooks Online.

Please do not hesitate to come back to this thread for more updates or if you have any inquiries on inventory reports and any other QuickBooks-related matters. I am here to assist you and will be keeping an eye out for your response. Take care.

@anna112 

Just to confirm, cash basis accounting does not have inventory, so the only accurate inventory valuation on cash basis should be QB showing $0 in inventory.  Only accrual basis accounting has inventory. 

The issue is that QB can only accurately switch between cash and accrual (as it relates to inventory) if all inventory entries are item-based.  This is the same as QB Desktop.  Any entries to inventory such as a journal entry or an entry on a bill, expense, etc. posted directly to your Inventory Asset account will bypass QBs ability to remove the inventory on cash basis reports.  If you have a beginning balance entry, QB must have created an entry that bypasses the item/product.  Are you able to locate the beginning balance entry that QB created?  If so, can you run a Transaction Journal report on it?  I'm curious to see what entry QB created and whether there's a workaround for it.

Thank you for taking the time to discuss the intricacies of inventory calculation between accrual and cash basis methods. However, I am concerned about the discrepancy observed: while the cash basis method considers bill payments and updates inventory positively, the same trend is not reflected for invoices. Consequently, the inventory keeps increasing under the cash basis method.

I would greatly appreciate your insights on this matter when you have a moment.

Thank you again for your assistance.

@vishvajeet-smboo 

"while the cash basis method considers bill payments and updates inventory positively, the same trend is not reflected for invoices. Consequently, the inventory keeps increasing under the cash basis method."

If your inventory is increasing on cash basis, then you must not be using items on your bills or your inventory asset account is being increased some other way that bypasses inventory items (expense/check entry, journal entry, etc. that posts directly to your inventory asset account).  QBO disregards items on cash basis reports.  

Has any found a work around for this issue?

Has anyone figured out how to fix this yet?  When I enter my bills the amount posts to the accrual base inventory however when I post the payment it is not posting in the cash base inventory.  Making the cash base inventory.

It's working as designed for inventory assets not reflecting on a cash basis reporting, KederScreens. Let me add more details regarding this matter for clarification.

Once you pay your bill, that's the only time your asset value in the balance sheet report generated on a cash basis is affected. Bills will affect Accounts Payable (A/P) and Inventory Asset, whose value will be reflected when you run the report on an accrual basis. Although bill payment will affect your asset value, it's affecting the A/P and your bank rather than the Inventory Asset. It's why the bill amount shows on an accrual base inventory, while the payment isn't posted on the cash base inventory.

For additional information, refer to this article: Impacts of inventory tracking on the Balance Sheet and Profit & Loss reports in QuickBooks Online.

Moreover, you might want to scan this material for guidance on personalizing your report to display specific data that meets your business needs: Customize reports in QuickBooks Online.

Please add a comment on this thread if you have questions about running the balance sheet report in QuickBooks Online. I'll be around to provide relevant information to address any of your queries.