Inventory

Hello there, jamesL8.

I want to make sure I can provide the best solution to your concern. Thus, I have to ask for more details on how you recorded the inventory. 

May I know what account is used to track the quick concrete? What amount is entered when you change the quantity on hand? I would also appreciate it if you could send me some screenshots. This will provide a clearer picture of what happened to the cash flow statement and the transactions. To keep your account secure, make sure to gray out your personal information.

You can learn more about how QuickBooks Desktop (QBDT) handles inventory and rental properties by using the resources listed below:

• Community guide 
• Record transactions for a property management company

From there, you'll find information on payroll, taxes, banking, and other accounting-related topics.

Thank you in advance, jamesL8. I’m looking forward to working with you again. Have a great rest of the day.

Thanks for the link to the resources, Rasa-LilaM.  I'll definitely check them out.

Below is a screen shot of my inventory item:

I've most recently used a sales receipt to relieve the inventory and cost it to my rental property:

And here is how my statement of cash flows looks:

I would like to be able to use the inventory item and cost it to this job without an asset gain.

Hi James!

Thank you for the screenshots. I will continue to assist you with your concern regarding your report.

The added amount to Inventory Asset on your report is from the QTY adjustment. It looks like 1 unit was added instead of deducting one.

I wonder why you need to create a sales receipt. You can simply make a QTY adjustment, apply the appropriate expense account, tag the job, and enter the new QTY after deducting 1 unit of quikcrete. This would create a deduction from the Net Income and won't add anything to the Inventory Asset.

I also want to include this article for your reference: Adjust your inventory quantity or value in QuickBooks Desktop.

Please don't hesitate to reach back out if you have any other concerns. Take care and have a good day!

As I mentioned in my original post, I tried this a couple of ways based on suggestions from this community.  The most recent method I had in my system was the sales receipt method that I previously screen captured.

I had already used the Adjust Quantity/Value On Hand, and it has the exact same zero sum effect on my cash flow statement.  I deleted the sales receipt and went back to the inventory adjustment method, and here are the screen captures below.  Note that I still have an inventory asset on the cash flow statement, and my goal is to expense the inventory to the Customer:Job without an asset gain.  Am I correct in thinking that I shouldn't want an asset gain on my cash flow statement?

Hello, jamesL8.

I'll share how to expense inventory items to Customer: Job without an asset gain in QuickBooks Desktop.

A gain on an asset occurs when an asset is sold for more than its carrying amount. The carrying amount is the asset's purchase price minus any subsequent depreciation and impairment charges.

You're almost there when you create a sales receipt with no value. Instead of zeroing the amount of the inventory item, you can create an Expense item and add it to the sales receipt with a negative amount to zero out the balance. I'll show you how.

Here's how to create an item:

1. Go to Lists, then select Item List.
2. On the Item List window, click the Item dropdown and then New.
3. Select the type of item you want to create.
4. Fill out the item fields.
5. Use Custom Fields to add your customized fields.
6. Select Save.

Then apply the newly created expense item to your sales receipt.

Here's how:

1. Go to the Customers menu.
2. Select Create Sales Receipts/Enter Sales Receipts.
3. Fill in the necessary information. Add the Expense item in the next line with a negative amount.
4. Click Save & Close.

I also recommend that you contact your accountant about the other option. This ensures that your books remain accurate.

For your reference, you can read this article for more information on how QuickBooks handles inventory assets, average cost, and Cost of Goods Sold (COGS): Understand inventory assets and cost of goods sold tracking.

I'm also adding this resource for more insights into managing your inventory quantity in QuickBooks Desktop: Adjust your inventory quantity or value in QuickBooks Desktop.

You're always welcome to post again if you need further assistance with the inventory. We're available to help you at any time.