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Jmac80
Level 1

Periodic inventory Adjustments

I recently found some inventory that was not previously accounted for.  How do I enter the value of this inventory into QBO.

 

The issue I will now have is that the inventory asset will now go into a negative value because I am selling more than I initially purchased.

 

Is there a way to enter a new Balance.  I don't what account to credit using a journal entry since I technically did not pay for the inventory.  

 

I am currently using the periodic inventory method

Solved
Best answer April 03, 2019

Best Answers
Anonymous
Not applicable

Periodic inventory Adjustments

Rustler is right in principle, but recording a business purchase can take several forms depending on 'who' bought 'what' as defined in the purchase contract.  You probably need some advice from an accountant to make sure you setup the starting entries correctly.  Likely you have someone help you a bit with the purchase - talk to them.

View solution in original post

5 Comments 5
Anonymous
Not applicable

Periodic inventory Adjustments

Doing periodic inventory means that you have a determined the actual inventory asset on a specifed date. If that tally was correct, and you have already posted it in QB - then try not to change it by making any changes to the inventory asset account. Or - if if does get changed then you have to adjust it back to where it should be.

If you have missed entering a sale of an inventory item then Yes you should record it and that will reduce inventory. So then you will have to edit the inventory adjustment already made, so the closing inventory balance goes back to where it should be

Jmac80
Level 1

Periodic inventory Adjustments

Thx Mike...

Here is my specific issue.. I recently purchased a business that has a retail front.  I use a POS system to track the inventory... In QBO I created an asset for the inventory value and COGS entry to offset.  Every quarter I add a journal entry to debit COGS and credit the inventory asset account based on my POS reports. When I took over the company I neglected to enter in the initial value of the inventory in the asset account in the chart of accounts (partially because I didn't know enter the opening  balance) 

 

I only entered the value of inventory I purchased moving forward.  I actually have about 65k in inventory but in QBO I only show 1000 (factors my quarterly updates).... How do I make QBO inventory asset account have the correct value.. if I do I journal entry and I debit the asset account what account can I credit that would have the least impact.. should I sent up a fake account payable

Jmac80
Level 1

Periodic inventory Adjustments

Thx Mike...

Here is my specific issue.. I recently purchased a business that has a retail front.  I use a POS system to track the inventory... In QBO I created an asset for the inventory value and COGS entry to offset.  Every quarter I add a journal entry to debit COGS and credit the inventory asset account based on my POS reports. When I took over the company I neglected to enter in the initial value of the inventory in the asset account in the chart of accounts (partially because I didn't know enter the opening  balance) 

 

I only entered the value of inventory I purchased moving forward.  I actually have about 65k in inventory but in QBO I only show 1000 (factors my quarterly updates).... How do I make QBO inventory asset account have the correct value.. if I do I journal entry and I debit the asset account what account can I credit that would have the least impact.. should I sent up a fake account payable

Rustler
Level 15

Periodic inventory Adjustments

@Jmac80 

 

The issue goes back to the purchase, When you bought the store, some part of that purchase price should have posted as inventory value, asset value (racks, display stands, computer system, etc). Those values should have come from the balance sheet of the store you bought. The remainder of the purchase price is good will.

 

So first you need to find the purchase entry, and the account it posted to.

Lets say it posted to an expense account, edit the payment and add in the inventory account, enter the inventory amount and lower the original amount for the expense account by that same amount.

 

 

Anonymous
Not applicable

Periodic inventory Adjustments

Rustler is right in principle, but recording a business purchase can take several forms depending on 'who' bought 'what' as defined in the purchase contract.  You probably need some advice from an accountant to make sure you setup the starting entries correctly.  Likely you have someone help you a bit with the purchase - talk to them.

View solution in original post

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