How do I change the general ledger account that an inventory purchase was charged to?

Welcome to the QuickBooks Community, @k-handler.

Let me share some insights with regards to handling your inventory in QuickBooks Online (QBO).

Once you set up your first inventory item, QuickBooks will automatically add two accounts to your company file's Chart of Accounts:

• 12100 - Inventory Asset - Other Current Asset
• 50000 - Cost of Goods Sold (COGS) - Cost of Goods Sold

When you buy an inventory item, your expense transaction will debit the Item's Inventory Asset account and credit your A/P, bank, or credit card account. This will not be debited to an expense account because it is an asset that you can sell for future benefit.

On the other hand, inventory COGS is only affected when you sell inventory items on invoices or sales receipts. 

That said, the option to change the item's expense account from COGS to the Inventory Asset account is unavailable. 

For more details, you check out this article: Understand inventory assets and cost of goods sold track.

Let me know how else I can help you with QuickBooks by adding a comment below. I'm more than happy to lend a helping hand. Keep safe!

Thanks, but that did not address my question at all.  this isn't about setting up the product, it's about correcting an invoice for purchasing the product that's already been booked...and was booked with the incorrect distribution account.

Hey there, k-handler. 

Thank you for clarifying. I'm more than happy to help get you where you need to be. I would suggest reaching out to our support team for further guidance as they can look at the invoice and help you get it to the correct distribution account. To reach them, follow these steps:

1. Sign in to your QuickBooks Online company.
2. Select Help (?) at the top right.
3. Enter your concern, then select Let's talk.
4. Select Contact Us to connect with a live support agent.
5. Choose a way to connect with us:
   • Start a chat with a support expert.
   • Get a callback from the next available expert.

I'm also including additional information on inventory below:

• Add inventory products in QuickBooks Online.

Thank you for your time and If there's anything else I can do to help, feel free to post here anytime. Thanks for dropping by and have a nice Thursday afternoon.

IDKS but I think what the bean counters were trying to tell you is that QB WON'T post to COGS until the unit is sold - NO MATTER what you think you did on the invoice.  I had the same thing going on.  The Pros here are welcome to correct me if I am incorrect.  I had the same issue. 

IN ADDITION:  QB seems to set up it's own Inventory Accounts once you have entered an Item.  I renamed my Inventory Account and when I put in a new Item the a New Account sprang up named just like the old one I renamed.  I ignored it, entered my Items with the account names I set up.  Now that I am doing taxes QB has stuck in another account - Inventory Asset - Other.  It has a Negative balance so I'm trying to figure that out.  I assume that QB doesn't like me naming my own Inventory Accounts and is adjusting for my mistake.  Inventory Asset - Other is running a Negative Balance which sounds wrong.  If any pro can help me I would be obliged, just use small words.

Thanks for joining the thread, SmokinBandit.

I'll be glad to share what I know about your inventory concern.

QuickBooks Online has a default inventory account where you can link your product. Modifying the account can disorganize the account list and result to a new one to sprang out

If you want to remove an account from your chart of accounts, you can referr to the steps outlined in this article: Remove accounts you no longer use.

If you want to seek guidance from an accountant, we can help you find one.

Please know that I'm here anytime you have other concerns. Have a great day!

Can you merge accounts in order to consolidate them?  I have several sub accounts under Cost of Goods like Materials, Finished Products, Consignments.  I think I should only have the one COG account.  Can they be merged?

Here is a screenshot.

Thanks for keeping an eye on this post, and for sharing a screenshot, SmokinBandit.

Yes, you can merge accounts. However, I recommend contacting our accountant for specific instructions about this.

Meanwhile,  you ca open the transactions posted under Inventory Asset - Other on the report. From there, you'll see where these entries came from.

And, if you need to update the posting account of those translations, you have the option to edit the item you've used on the invoice. It'll help organize the data that appears on your reports and ensure your company has an accurate record of your transactions.

To do this, here are the steps you can follow:

1. Go to Settings ⚙ and select Products and Services.
2. From the Action column of the appropriate item, select Edit.
3. From the Income account ▼ drop-down, choose the account you want to use. Can't see the account? Make sure the account's detail type is Sales of Product Income.

If you need to update past transactions, you need to create a new item since inventory items track quantities on hand using First In, First Out (FIFO). FIFO affects your assets and Cost of Sale (COS) differently from service and non-inventory items.

Let me show you how:

1. Go to Settings ⚙ and select Products and Services.
2. Select New, then choose Stock.
3. Enter all the information needed. Make sure to select the correct income account.
4. Select Save and close.
5. Go to the Sales menu, then select Invoices.
6. Select the invoice you want to update.
7. Select the delete (trash can) icon at the end of the line of the old inventory item.
8. Add the new inventory item, and enter the corresponding quantity.
9. Click Save. Do this for the past transactions you want to update.
   
   

If past transactions aren't showing the changes, change the income account then switch it back to the correct one.

Learn more about merging accounts through this link: Delete an account on your chart of accounts in QuickBooks Online.

Let me know if there's anything else you need by commenting below. I'm always around whenever you have follow-up questions about this.