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genesis89
January 31, 2022
Question

INVENTORY/BALANCE SHEET

  • January 31, 2022
  • 1 reply
  • 11 views

I am new to quickbooks, my inventory asset cost are high not sure why  but we buy and resale items right away not sure how to fix this issue i have tried to adjust the inventory on hand but it does not show on my balance sheet.  i have tried everything and still cant seem to get it. please help i am stuck at this point.

1 reply

R
RCVQuickBooks Team
QuickBooks Team
February 1, 2022

Hi there, genesis89. 

 

There are possible reasons why there are no adjustments shown on the QuickBooks balance sheet. Among these are: 

  • The Balance Sheet report may not have been run for the correct date.
  • The correct adjustment is not reflected in the Inventory Asset account.

 

Let's make sure the reporting period includes the date of the adjustment. If it does not, rerun the Balance Sheet report with the correct date. Then, verify that the general journal entry adjustment decreased the Inventory Asset account by the cost of the deleted items. Here's how:

  1. In QuickBooks Desktop, go to Lists and select Chart of Accounts.
  2. Double-click the Inventory Asset account.
  3. If the general journal entry adjustment did not decrease the Inventory Asset account by the correct amount, return to QuickBooks Desktop and edit the adjustment.

 

Also, to adjust the quantity on hand, we'll need to create a separate account in your chart of accounts to track your adjustments. Here's how:

  1. Go to Company on the top menu and select Chart of Accounts.
  2. Select the Account dropdown, then New.
  3. From the Other Account Types dropdown, choose Cost of Goods Sold.
  4. Name this account “Inventory Adjustments”, and then press Save and Close.

 

To learn more about this one, check out this article: Adjust your inventory quantity or value in QuickBooks Desktop. Then, try running the Balance Sheet report. 

 

Feel free to visit our Inventory reports page for more insights about creating and running inventory reports.

 

I'd like to know how you get on after trying the steps, as I want to ensure this is resolved for you. Feel free to reply to this post and I'll get back to you. You have a good one.

G
genesis89Author
February 2, 2022

i figured out some of my discrepancy are due to wrong number of inventory items entered. Most of my inventory items are one but majority of them are showing we had two and only sold 1 so that is part of inventory cost being so high. How can i fix those issues

Rubielyn_J
Rubielyn_J
Level 8
February 2, 2022

I appreciate you for getting back to this thread, @genesis89. Let me help you handle discrepancies on a balance sheet.

 

Since you mentioned that the discrepancy is due to the wrong number of inventory items entered, we can simply adjust the quantity on hand of the item.

 

First, create a separate account in your chart of accounts to track your adjustments.

 

  1. Go to the Company and then select Chart of Accounts.
  2. Click the Account ▼ dropdown, then choose New.
  3. From the Other Account Types ▼ dropdown, choose Cost of Goods Sold.
  4. Name the account as Inventory Adjustments, and then click Save and Close.

 

Once done, you can adjust a product’s quantity on hand:

 

  1. Choose Vendors and then select Inventory Activities. Then, select Adjust Quantity/Value on Hand.
  2. Choose Inventory and then click Adjust Quantity/Value on Hand
  3. Select the Adjustment Type ▼ dropdown, Quantity, and Total Value. Click the adjustment type option and then select your adjustment account.
  4. Input the Adjustment Date.
  5. Choose the Adjust Account ▼ dropdown, then select the adjustment account you set up.
  6. Click Find & Select Items and select the items you want to adjust. 
  7. Select Add Selected items.
  8. Once done, choose Save and Close.

 

For more insights, please see this article: Adjust your inventory quantity or value in QuickBooks Desktop.

 

Then, run a Balance Sheet report to see if there are still some discrepancies. 

 

Additionally, let me share this link to help you adjust the inventory of finished goods in QuickBooks Desktop. This helps adjust without affecting the stock of components.

 

Fill me in if you have other questions about discrepancies in the balance sheet. I'll be happy to help again. Wishing you and your business continued success.

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