Incorrect Inventory Tracking in Quickbooks for Mac

smleick4484 · ‎March 04, 2019

Have set up Quickbooks for Mac inventory with start date of 1/1/2019. Discovered upon entering prior year outstanding invoices that quickbooks is deducting all items on these invoices from current inventory, even though they are dated 2018. We now have negative as well as incorrect inventory items. Please advise . . .

Rustler · ‎March 05, 2019

@smleick4484 wrote:

Thank you for your prompt response. If I understand you correctly, we can fix the problem by creating a fictional service item for the amount of the invoice, deleting all the actual inventory items from the invoice. To clarify, the service item should be posted to the same sales account as the inventory items were? Do we need to make any other adjustments or journal entries? We operate on a cash basis, and are wondering whether this adjustment will affect our financial reports for tax purposes.

create the service item, I name it something like bal. fwd. sales and select an income account

edit the invoice, add the Bal. Fwd item on the next line for the same amount

then delete the line(s) with inventory items, save

Cash basis report on cash received as of the date received, so when those invoices get paid, yea that will increase cash basis income

View solution in original post

Rustler · ‎March 04, 2019

QB is perpetual, so any historical entries you make will effect current balances

to enter historical sales of inventory, do not use inventory items, use a service item to get the income posted on the open invoice

smleick4484 · ‎March 04, 2019

Thank you for your prompt response. If I understand you correctly, we can fix the problem by creating a fictional service item for the amount of the invoice, deleting all the actual inventory items from the invoice. To clarify, the service item should be posted to the same sales account as the inventory items were? Do we need to make any other adjustments or journal entries? We operate on a cash basis, and are wondering whether this adjustment will affect our financial reports for tax purposes.

AldrinS · ‎March 04, 2019

Hi there, smleick4484.

I'm by no means an accounting professional, but I'd like to join this discussion and add to Rustler's awesome answer.

Yes, you can post the Service items to the same income account assigned to your Inventory items. With this, you shouldn't need to make any other adjustments or journal entries in QuickBooks Online.

However, please be sure to reach out to an accounting consultant to ensure this method is the best suit for your business. With Intuit's Find-A-ProAdvisor site, you can search for certified professionals in proximity to your ZIP code that can discuss options more personal to your business's needs.

That should get you going in the right direction. Please let me know if there's anything I can help you succeed with. I assure you that I'll do my best to help you out!

Rustler · ‎March 05, 2019

@smleick4484 wrote:

Thank you for your prompt response. If I understand you correctly, we can fix the problem by creating a fictional service item for the amount of the invoice, deleting all the actual inventory items from the invoice. To clarify, the service item should be posted to the same sales account as the inventory items were? Do we need to make any other adjustments or journal entries? We operate on a cash basis, and are wondering whether this adjustment will affect our financial reports for tax purposes.

create the service item, I name it something like bal. fwd. sales and select an income account

edit the invoice, add the Bal. Fwd item on the next line for the same amount

then delete the line(s) with inventory items, save

Cash basis report on cash received as of the date received, so when those invoices get paid, yea that will increase cash basis income

smleick4484 · ‎March 05, 2019

Thank you so much for your help!

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Incorrect Inventory Tracking in Quickbooks for Mac