Changing the inventory asset account

Hi there, @joneill1186. 

I'm here to help you manage your inventory asset account.

We can set up an inventory adjustment and post it to their proper accounts, your inventory status report will show accurate tracking of your inventory quantities.

Here's how to create an inventory adjustment account:

1. Click the Lists menu at the top, and then choose Chart of Accounts.
2. Select the Account ▼ dropdown, and then New.
3. From the Other Account Types ▼ dropdown, choose Cost of Goods Sold.
4. Name this account “Inventory Adjustments."
5. Fill out other info as needed, and then click Save and Close.

Once done, you can now adjust your product’s quantity, value, or both. Let me guide you how:
 

1. Click Inventory at the top, and then select Adjust Quantity/Value on Hand.
2. Choose the Adjustment Type ▼ drop-down, and then select Quantity, Total Value, or Quantity and Total Value.
3. Select the adjustment type option and then choose your adjustment account.
4. Enter the Adjustment Date.
5. Choose the Adjust Account ▼ drop-down, then select the adjustment account you set up.
6. Add Reference No. You can also assign a customer, job, or class.
7. Select Find & Select Items, and then choose the items you want to adjust. (If you have a lot, search for any product in the Find field.)
8. Click Add Selected items, and then add a new quantity or new value (or both) for each item.
9. Select Save and Close.

For more details, please check out this article: Adjust your inventory in QBDT.

If you need further assistance, I'd recommend reaching out to your accountant first. This way, your accountant can decide which accounts to use to properly track your inventory. If you don't have one, you can use our Find an Accountant tool to look for one.

In case you encounter negative inventory, please check this article for details: Fix negative inventory issues in QuickBooks Desktop.

You can always post a comment here if you have additional inventory questions or concerns. We’re always here anytime to help. Keep safe.

So this actually looks like it has been happening for years with smaller accounts and just recently noticed because of some bigger transactions being used on the wrong account. 

If I change the account, will it affect previous years reports? 

FE: Transactions happened in 2019. Nothing since, but it was the wrong account on the item card. If I change the item card account to the correct account now, does it go back to 2019 and change the transactions? 

Thanks for following up with us, @joneill1186. 

You've got that right. Changing the account on the item card will update the previous year's reports and transactions. You can use the steps that my colleague, AbegailS_, provided above to change the accounts. 

For safe practices, it's always best to create a back up of your company file before making any changes to it. This way, if something doesn't seem right, you can go back and restore the back up before changes were made. I've included some steps to create a back up file below. 

1. In QuickBooks, go to the File menu and select Switch to Single-user Mode.
2. Go to the File menu again and hover over Back up Company. Then click on Create Local Backup.
3. In the window, select Local Backup and then Next.
4. In the Local Backup Only section, select Browse and select where you want to save your backup company file.
5. Set the number of backups you want to keep. This is optional.
6. This runs a test to make sure your backup file is in good shape before you save.
7. When you're ready, tap OK.
8. Hit Save it now and Next.

For more details about creating backup company files, check out Back up your QuickBooks Desktop Company File. 

Please know that I'm only a reply away if you have any additional questions or concerns. Have a good one!