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Level 1

How can reduce inventory cost without reducing quantities?

For example I have  item A  qty on hand 100 units value $5= $ 500, and I would like to record a lost in market value to $ 4, which after such transaction would be qty on hand 100 units $4 = $ 400

 

Lost in market value  $ 100 (debit),  inventory $ 100 <credit>...

I do not want to make a Journal Entry, as I want the item reflects the new cost of $ 4.

 

How can I do it in QBO plus ?

 

 

Solved
Best answer 10-31-2018

Accepted Solutions
Level 15

Re: How can reduce inventory cost without reducing quantities?

You can never use a journal entry when you use inventory type items in QB.  Doing so will adjust the overall value in inventory asset but will NOT affect item valuation, as a result the balance sheet inventory asset value and the total value of inventory on hand will not match

 

in QBO you can not adjust cost for any item already purchased.

 

You do not adjust item cost for market value, cost is what you paid for it.

 

There is a tax time only inventory valuation method Lower of cost or market (LCM), but that is done outside of QB and as the name suggests you first have to have actual cost per item.

View solution in original post

1 Comment
Level 15

Re: How can reduce inventory cost without reducing quantities?

You can never use a journal entry when you use inventory type items in QB.  Doing so will adjust the overall value in inventory asset but will NOT affect item valuation, as a result the balance sheet inventory asset value and the total value of inventory on hand will not match

 

in QBO you can not adjust cost for any item already purchased.

 

You do not adjust item cost for market value, cost is what you paid for it.

 

There is a tax time only inventory valuation method Lower of cost or market (LCM), but that is done outside of QB and as the name suggests you first have to have actual cost per item.

View solution in original post

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