Massive Transfer of Inventory products between Expense category (Job Supplies) and Inventory Asset

TimBone51 · ‎February 25, 2022

I have started doing the books for a small electrical contractor with Inventory tracking on. From 9/28/2020 to 6/3/2021, products purchased were posted to Job Supplies expense account. On the other side (Invoices) the sale of products are posted to the product (Inventory Asset).

End result is 9800.00 balance in Job Supplies and -9300.00 in Inventory Asset and a large number of products with negative QOH.

I already know that I can go to each Vendor expense record and repost the aggregate amount to the individual products, after resetting the product starting value date (when necessary) to a point in time before the expense record date. That is about 139 expense records with an unknown (but multiple) number of items on each record.

I am wondering if it is possible to get the same results Journal entry that credited Job Supplies and debited Inventory Asset how would the QOH be updated for the individual products? Or is that even possible?

Thanks for your help

Tim

Rustler · ‎February 25, 2022

No, you can not use a journal entry for inventory asset, nor can you use it in a transaction. Inventory asset is a parent account and like all parent accounts nothing is normally posted to it. Think of the items as sub accounts, all transactions post to them, qty and cost.

So when you use inventory asset in a transaction, the total value of the account changes, but when you compare the value on the balance sheet to the inventory valuation summary report - they do not match. And match they must.

TimBone51 · ‎March 08, 2022

Thanks Rustler. So the only viable solution is what I am doing now? Repost the material receipts into the correct inventory items?

thanks again

Rustler · ‎March 09, 2022

Yes

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Massive Transfer of Inventory products between Expense category (Job Supplies) and Inventory Asset