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dandb
Level 1

Can we zero out the inventory asset account since it is never used?

Our inventory has remained static for several years and we do not track inventory. How do I remove that asset from the books since it does not exist?
3 Comments 3
HoneyLynn_G
QuickBooks Team

Can we zero out the inventory asset account since it is never used?

Good day, @dandb.

 

Thank you for choosing QuickBooks as your accounting partner. I can help you zero out the inventory asset account.

 

You can create a journal entry to remove the asset from your book since you no longer track inventory:

  1. Click the Plus icon.
  2. Choose Journal Entry.
  3. Enter the necessary information.
  4. Click Save.

 

I also advise reaching out to your accountant who can tell you which process would be better for your specific books.

 

Let me know if you have additional questions for me by adding a reply. I'd be happy to help you further. Wishing you and your business continued success!

dandb
Level 1

Can we zero out the inventory asset account since it is never used?

The answer was good however it didn't say the other side of the journal entry. Also my accountant told me to let my CPA give options since it is not a qb problem but a tax problem. Then to match what he does with my qb.

Rustler
Level 15

Can we zero out the inventory asset account since it is never used?


@dandb wrote:

The answer was good however it didn't say the other side of the journal entry. Also my accountant told me to let my CPA give options since it is not a qb problem but a tax problem. Then to match what he does with my qb.


If you have inventory type items, you NEVER use a journal entry, or any other type of entry, using inventory asset.  Item cost is held per item, the total is what you see as the inventory account balance and a journal entry can NOT affect items.

 

If you were told to follow the tax cpa advice, then get that advice and ask us how to follow it without messing up your financials. 

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