Changing Account associated with Inventory item and their prior transactions

JosetteB · ‎July 14, 2022

We use QB Enterprise. We have most features turned on including Multi-currency, Advanced pricing and Advanced Inventory (we use FIFO). We maintain a few Inventory accounts in our trial balance based on the Category of our Items. Our list of inventory items include Assemblies made up of two or more of the other items. Recently, I discovered that some of the items used in Assemblies were associated with incorrect Asset accounts. We began editing the items to change these wrong Asset accounts and selected the option to change prior transactions. The prior transactions for item receipts, invoices and sales receipts were successfully changed to the new Asset account. However, with the transactions for "Build Assemblies", the items used in the assemblies remained deducted from (credited) the old Asset accounts causing the old asset account to have a large negative (credit) balance.

I was hoping to get the values in the trial balance Inventory accounts adjusted without using Journals. Has anyone had this problem and if so how did you get the prior "Build Assembly" transaction to be deducted from the new Asset account?

JessT · ‎July 15, 2022

Hi Josette!

Thank you for the detailed explanation. I'd like to step in and help.

Changing the asset accounts of your component items will not retroactively update the asset accounts in the built assemblies. You will need to unbilled (delete build) and rebuild them to recognize the new accounts. Please back up your file before changing anything in your records.

Delete build:

From the Lists menu, choose Item List.
Right-click on the assembly item.
Select QuickReport: [item_name].
Find the assembly transactions and zoom out each one.
In an open assembly, press Ctrl+D or click Edit > Delete Build.
Click OK to confirm.

On the other hand, if you need references for QuickBooks Desktop Enterprise, you can visit the main support page and click More Topics.

Let me know if you have any other questions regarding your inventories or assembly items. Take care always!

View solution in original post

JoesemM · ‎July 14, 2022

Hi, @JosetteB. I appreciate the in-depth information you shared. This will help us get to the bottom of the problem.

You'll have to manually change the asset account of your inventory assembly to reflect the changes. This way, the items used for the assemblies will deduct from the new Asset account.

Changing the asset account of your inventory assembly allows you to update the posting account of your builds. Also, make sure that you click the Yes button on the pop-up.

Thus, a pop-up says You changed the account associated with this item. If you've clicked on Yes, it will automatically post to your new asset account. However, if you've clicked on No, it doesn't post to your new account.

Here's how:

Go to Lists.
Choose Item List.
Locate and double-click the Inventory Assembly.
At the bottom, update the Asset Account then click OK.

Here's an article you can read to learn more about inventory assembly: Create, Build, and Work with Inventory Assembly Items.

On top of that, you can read this article to learn more about the average cost of your items and how to record an adjustment:

Add another reply below if you need anything else. As always, the QuickBooks Team is here to help you again. Stay safe!

JosetteB · ‎July 15, 2022

Hi Joesem M

Thank you for your response, I think you might have misinterpreted the problem I am having. The assembly item is being posted to the correct Asset account. The asset account for the Assembly item has not been changed.

The problem is with the items that make up the assembly. The asset account has been changed for the individual item that makes up the assembly. Prior transactions including item receipts and invoices were adjusted to the new asset account; however, the asset account that the Build Assembly deducted the value of the items from has not changed to the new account. This resulted in deduction being made in the old asset account when all the item receipts were already moved to the new asset account.

I hope I have explained it better.

Thanks

JessT · ‎July 15, 2022

Hi Josette!

Thank you for the detailed explanation. I'd like to step in and help.

Changing the asset accounts of your component items will not retroactively update the asset accounts in the built assemblies. You will need to unbilled (delete build) and rebuild them to recognize the new accounts. Please back up your file before changing anything in your records.

Delete build:

From the Lists menu, choose Item List.
Right-click on the assembly item.
Select QuickReport: [item_name].
Find the assembly transactions and zoom out each one.
In an open assembly, press Ctrl+D or click Edit > Delete Build.
Click OK to confirm.

On the other hand, if you need references for QuickBooks Desktop Enterprise, you can visit the main support page and click More Topics.

Let me know if you have any other questions regarding your inventories or assembly items. Take care always!

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Changing Account associated with Inventory item and their prior transactions