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Level 1

I need to enter a journal entry including an inventory item, but it isn't given by QBO as an option. How can I enter it in the Journal Entry?

 
3 Comments
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Moderator

I need to enter a journal entry including an inventory item, but it isn't given by QBO as an option. How can I enter it in the Journal Entry?

Hello Verdickmoja,


Welcome to the QuickBooks Community! I would suggest following these steps, but this only work for the inventory asset account:

 

1. Create the journal entry by selecting +New and clicking Journal Entry.
2. Select Inventory Asset account and enter in the description the name of the inventory item.
3. Add the necessary information and save it.

 

However, I advise getting with your accountant to confirm that this would be acceptable for your business. If you don't have an accountant, you could connect with a ProAdvisor specialist. They offer a free consultation to businesses. Simply enter your zip code and search to find one near you. 
Keep me updated!

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Level 15

I need to enter a journal entry including an inventory item, but it isn't given by QBO as an option. How can I enter it in the Journal Entry?

@SashaMC 

NO, you never ever us a journal entry for inventory items - It will not work and WILL mess up the balance sheet.

 

@verdickmoja 

 

Never use journal entry for inventory it will not work to affect qty or cost but will misstate the balance sheet amount for inventory asset.

 

QB is not a journal entry type of software.  Use the menus and forms, QB does the journal entry behind the scenes.

 

Journal entries should be the exception when using QB, they often do not work as you think they should, and  when you use inventory type items they never work for inventory. It is much better to use the forms on the home page the way QB is designed to be used.    Journal entries also bypass accrual/cash reporting, and will not show on many reports.

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Level 11

I need to enter a journal entry including an inventory item, but it isn't given by QBO as an option. How can I enter it in the Journal Entry?

@verdickmoja 

@SashaMC 

 

"I need to enter a journal entry including an inventory item, but it isn't given by QBO as an option. How can I enter it in the Journal Entry?"

 

You can't. You never want to use a Journal Entry for product/service inventory items. You will need to follow the proper workflow for adding inventory items in QBO.

 

You can refer to this helpful article:

https://quickbooks.intuit.com/learn-support/en-us/set-up-inventory-lists/set-up-and-track-your-inven...

 

Hope this helps!

 

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