Paying for inventory that was received prior to my purchase of the business

create a liability account, use a journal entry

debit equity, credit the liability account for that amount due

then create a payment on the bank

on the first line, list the liability account and the amount

Thanks Rustler.  I will give that a try.

Rustler, I have seen your name on here a couple of times, so you seem to be very knowledgeable about quickbooks.  So, if you don't mind I would like to ask you another question.  So the business I purchased on Oct 1, 2019 had a little over 200k in inventory.  I use quickbooks POS that I purchased from the original owner and I use quickbooks desktop enterprise.  I have noticed in QV desktop that my inventory value is negative.  Seems the October 1 inventory did not carry over from POS to my company file.  I called QB and they told me that the inventory in QB will not carry over from the POS and will never be correct.  That if I want my inventory value I should pull it from the POS and not QB's.  I tried to explain that none of my reports will be accurate if that is the case.  Do you know anything about this?  I don't think I am being given the correct information from the QB experts.  How can your accounting software just not have viable inventory value?

I wish I could help, but I know nothing about POS, I demo'd it once long ago and was unsatisfied

I found this on utube, not sure if it will help, but you might reach out to the group that put this on

https://www.youtube.com/watch?v=ACfDCzVfxeE

As far as I know POS is designed to hold inventory in POS and just transfer totals to QB, so the inventory asset account in QB will only reflect total purchases less cost of sales.

In QB many get confused, creating an inventory item and entering cost is block labeled cost, is no the item cost that is used when you sell an item.  That block is just a refereence of the most recent purchase price when things are operating normally.  Average cost comes from the initial set up ONLY if you entered a qty on hand and total value on the bottom of the new item screen, and purchases.

If you create an inventory item with out a real average cost, and sell it.  There is a decade or more bug that raises its head.  see this

http://onsale-apparel.com/Rustler/warning-inventory-bug

Thanks for your help.  Appreciate it.  Hope you have a great Thanksgiving.