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Inventory Adjustments, begininning/ending and Cost of Goods sold for a restaurant.

I'm about to have a nervous breakdown trying to figure this out on my own. So I do the bookkeeping for a restaurant. We just started to account for inventory. Problem is, I broke it down per Dairy, Produce, seafood, poultry, dry goods, perishables, to go and Paper items, cleaning supplies, kitchen supplies, etch. I made a COGS for all of the food items and just expense accounts, plus of course Income accounts. Which are Food, Beer, Wine, Liquor, Other Items and N/A beverages. So my boss gave me ending numbers for April . But not anything for beginning of month. So there's my 1st problem how to I figure anything out and what is the journal entries. 2nd problem, she only did a total for a combination of Beer, Wine & Liquor. Then a number for all the Food items and another total for Perishable, dry goods and anything else. So I only got 3 sets of numbers. Even if I did just use the 3 numbers but divide it by department to make adjustments it just doesn't work out. So I have 3 sets of numbers for end of April, both for for May, June and July. I know it's beginning inventory + Inventory you bought - The amount in sales. = the amount sold, which would go as the adjusting number , right? Now so I have a half of year inventory not accounted for. And even if she took inventory of all the items she wanted to cover, shouldn't my end number match the amount she counted for the ending balance. I am really confused right now. I've been crying on and off all day because I know it should be easy, but it's not. I'm really hoping for an easy enough answer so I don't have a another breakdown tomorrow. Thank you to everyone that does try and help me.

1 Comment
Anonymous
Not applicable

Re: Inventory Adjustments, begininning/ending and Cost of Goods sold for a restaurant.

Im going to suggest that you strip down your accounts to the bare bones and leave any extra details (if you have them) outside of QB.

2 Revenue categories: Food & Beverage 

Just 3 inventory accounts: food, beverages (including liquor), and supplies.

3 matching COG accounts, and 3 matching 'inventory change' COG accounts.

Expense everything as purchased into COG.

Do the inventory summaries in excel (however you can) and just port the summary totals to QB as JE to Inv & InvChangeCOG. 

Once you and boss get used to doing things one way you can start to add more detials in sales, COGS, & inventory

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