Asset Value, Inventory Valuation Report

Forum|Forum|7 years ago
November 15, 2018
1 reply
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Hi Everyone! I have a client that has NOT used item details to enter the purchase of inventory. He has been using starting value and then inventory adjustments. I want to have it calculate the actual value of what is on hand based on the costs entered in the product setup. Is it too late to do this since he has never set it up correctly from the beginning? Any thoughts?

Kevin

QuickBooks Online

Anonymous

It is never too late to change inventory systems - just be careful and thorough if you do change.

I want to have it calculate the actual value of what is on hand based on the costs entered in the product setup. - Thats not how QB will do it, but you can do it that way if its a manual system.

If you use 'inventory' items - then QB will use FIFO valuation based on the actual purchase price paid per item (regardless of the setup cost)

booksbyschmidtAuthor

I agree with you, but maybe I didn't ask correctly. I have 500 QOH, but $0 Value....I would like to have it calculate the value....do I have to start over and do the entries the correct way or is there a way to adjust Value in QBO?

Anonymous

So if you have some quantity but no value then something has not been entered correctly. The ideal way to handle inventory received is to enter it on the 'items' tab of a vendor bill (or check, or credit card purchase) - filling in both the quantity and price to calculate cost. If possible I'd suggest you correct the prior entries.

Note that the item inventory is only half your problem - there must also be an issue with AP or COGS or RE. Correcting the prior entries ensures that both sides of the issue are fixed.

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