Problem: Our company uses QB Desktop and has been inconsistently tracking inventory items using different units of measure (without having units of measure enabled). We would like to make everything consistent.
Example: Item A and item B both come 1000 each to 1 case. To make it simple, let’s say both items have exactly 1000 ea (or 1 cs) on hand. They both cost .10 each and $100 per case. BUT for item A, we show 1,000 on hand with a Cost of 10 cents each. For Item B, we show 1 on hand with a cost of $100 each. It’s the same total value, just represented differently.
We would like to convert all the items that are represented in each, to cases. We buy and sell by the case only. So using the above example, item A would be converted to 1 on hand. Like I said, no Unit of Measure is enabled currently.
The solution I tried using a Sample company seems to work. However, we are still not 100% sure that it won’t mess anything up. Here was the solution:
1. Click on Adjust Quantity/Value on hand in inventory activities
2.Use the Inventory adjustments account. After changing the “new quantity” column, “new value” will change. Change New Value back to what it was before, to keep inventory valuation the same.
3. Go to the Item in Item Lists and adjust the cost and sales price accordingly to reflect cases.
After doing this, I found that Inventory Valuation, Balance Sheet, Profit and Loss were unaffected. And now all items were accounted for consistently. However, Open Purchase Orders and Bills that were by the each still needed to be adjusted to reflect cases instead. Is there anything else I am missing that could be affected?
