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tim-taylor0210
Level 1

New QB user. First physical inventory. When I use "Inventory Activities" tool, the Inventory Valuation report changes appropriately, but assets on B.S. do not change?

 
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Best answer January 08, 2020

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tim-taylor0210
Level 1

New QB user. First physical inventory. When I use "Inventory Activities" tool, the Inventory Valuation report changes appropriately, but assets on B.S. do not change?

"Angelyn_T" (Quick Books Team) emailed me and pointed me to some generic instructions on how to do an inventory adjustment.

     It appears to me that when I do a test run on one of my inventory items, I get two line items that land in my inventory, just like I'd expect. One is positive and one is negative and they simply cancel each other out.

     Clearly, I'm likely doing something dumb, some mechanical thing needs to be added or whatever.  During the last six months I've found almost all QB functions VERY user-friendly and intuitive.  This one is a mystery.

Thanks.  Tim.

View solution in original post

3 Comments
Angelyn_T
QuickBooks Team

New QB user. First physical inventory. When I use "Inventory Activities" tool, the Inventory Valuation report changes appropriately, but assets on B.S. do not change?

Welcome and thank you for posting here on the Community page, @tim-taylor0210.

 

To see the changes in your inventory on the Balance Sheet report, you can run it in the Cash or Accrual method. The asset will differ if the transaction is marked as paid or not.

 

Here's how:

 

  1. From the Report menu, select Company & Financial.
  2. Choose either Balance Sheet Detail or Balance Sheet Summary.
  3. On the report's page, switch the Report Basis to Accrual or Cash to see the changes or information.

For more information about inventory assets as well as adjusting inventory value/quantity, you can read these articles:

 

Keep me posted if you have any other QuickBooks or inventory questions. I'm always here to help. Have a great day!

tim-taylor0210
Level 1

New QB user. First physical inventory. When I use "Inventory Activities" tool, the Inventory Valuation report changes appropriately, but assets on B.S. do not change?

"Angelyn_T" (Quick Books Team) emailed me and pointed me to some generic instructions on how to do an inventory adjustment.

     It appears to me that when I do a test run on one of my inventory items, I get two line items that land in my inventory, just like I'd expect. One is positive and one is negative and they simply cancel each other out.

     Clearly, I'm likely doing something dumb, some mechanical thing needs to be added or whatever.  During the last six months I've found almost all QB functions VERY user-friendly and intuitive.  This one is a mystery.

Thanks.  Tim.

View solution in original post

GlinetteC
Moderator

New QB user. First physical inventory. When I use "Inventory Activities" tool, the Inventory Valuation report changes appropriately, but assets on B.S. do not change?

Good to have you back, tim-taylor0210.

 

It seems to me that you could have used a different account associated with your inventory item. This is why in your Inventory Valuation report it only basis the cost and your quantity on hand. While the Balance Sheet report will base on what affected account used.

 

We can go back to your inventory item and verify what affected accounts used. You may need to create a journal entry to correct them.

 

I'd also suggest consulting your accountant so they can help you with the proper recording. This is to avoid messing up your books.

 

Keep me posted if you need more help,

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