We are currently using QB Simple Start Online and a standalone inventory database for our retail store. We are going to transfer to QB Online Plus due to the inventory feature, but I am not sure how to make the accounting adjustments for the inventory we already have accounted for in QB.
Right now, I enter the items individually that we purchase in to the inventory database and then make a journal entry into QB, debiting Inventory Asset and crediting either cash or the bank. To account for a sale, an entry for the total daily sales is made in Sales Receipt using Inventory as the Product/Description. At the end of the month, I make the adjustments in QB to account for the COGS and the reduction in inventory so that both the standalone inventory database and QB will match.
I will be entering each inventory item we currently have when we transfer over to the new QB. How will I adjust the inventory total so that the amount of inventory is not doubled? I thought about creating a new account in the Chart of Accounts for the old inventory, but the total inventory for both accounts would still be doubled.
Once you move to QBPlus you will have to create new 'inventory' type items for all your stock goods. Create these with zero opening qnty.
Yes you should add a 'new inventory' asset account (with zero initial balance) and use that account as the 'asset' setting for the all the inventory items you create.
Then you will make a single long inventory adjustment to setup the current quanitities and values of all the new items currently in stock and the 'adjustment' goes onto the 'old inventory' asset. This moves the inventory value into the 'new inventory' account.
We purchase antiques and furniture items from estates or auctions so the majority of our inventory consists of a quantity of one as they are mostly different. Right now, we have appx 1000 items in inventory. You explained that I create an inventory item for each individually showing 0 opening quantity. Can I use the template to upload all of the information showing quantity of 1 and then create a journal entry for the total cost of the inventory so that they will balance?