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Experienced Member

Creating New Books and Accounting for Inventory

I started a new set of books as the previous books were completely skewed and incorrect. I have everything ready to go and the last bit was accounting for inventory. I am using QB Enterprise Mfg and Wholesale 2018. We did a recount of inventory and I am entering through "adjust quantity on hand" however the adjustment account is set up as an "other expense" and since all quantities are zero to begin with it causing it to be negative. I feel this will overstate the income for the year and I am not sure how to adjust for that. Any suggestions?

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Best answer 12-03-2018

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Established Community Backer ***

Re: Creating New Books and Accounting for Inventory

You control this, top left of your Adjustment screen: "however the adjustment account is set up as an "other expense""

 

Change that to Equity. Prior inventory Assets on hand are part of Equity.

3 Comments
Established Community Backer ***

Re: Creating New Books and Accounting for Inventory

You control this, top left of your Adjustment screen: "however the adjustment account is set up as an "other expense""

 

Change that to Equity. Prior inventory Assets on hand are part of Equity.

Established Community Backer ***

Re: Creating New Books and Accounting for Inventory

Oh:

All Quantities that are at zero = no adjustment is entered. You don't Have Any on hand, and there is no Basis either.

 

You use Adjust, to populate all Quantity and with Cost Basis for what you just physically found and counted.

Experienced Member

Re: Creating New Books and Accounting for Inventory

I thought I should put to equity but I wanted to make sure thank you!