The company I work for had a ton of inventory issues spanning back the last few years. They no longer wanted to use the inventory function, so our accountant advised us to switch everything over to non-inventory parts. I did inventory adjustments to set every item back to 0 (we had tons of negatives and false quantities). I transferred everything over to non inventory, the only issue now is our reports are all screwed up. We show a huge profit and inventory asset after the adjustments. The large profit is completely wrong, since we didn't actually sell anything we just adjusted it off. How can I fix this so my reports don't show these huge inaccuracies? Is there a specific journal entry I need to perform? Any advice is appreciated, trying to avoid a costly accountants bill.
Thank you for discussing the detailed information, @Chloecs.
Yes, there is Journal Entry (JE) that needs to perform in QuickBooks Desktop. So, there are no huge inaccuracies show up in the reports. But before doing this, it would still be best to consult with your accountant to help determine the appropriate accounts to use in creating JE. Also, to make sure what's best for you and your business.
Here's how to create a JE:
Go to the Company menu at the top, then choose to Make General Journal Entries.
You can always open the JE report to review all the entered debit and credits by going to the Reports menu at the top. Then choose Accountant & Taxes and pick Journal. Customize it to show the specific aspects. For more information about customizing, visit this article: Customize reports in QuickBooks Desktop.
I've also added a topic about managing inventory, products and services, purchase orders, and many more.