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Level 2

How do I move a used car out of inventory? When I create a sales receipt it moves the starting value from Inventory asset to Opening balance equity?

 
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Level 15

Re: How do I move a used car out of inventory? When I create a sales receipt it moves the starting value from Inventory asset to Opening balance equity?

Inventory  items have three accounts
expense = COGS
income = your sales income account
asset = inventory asset

Check your inventory item set up for the above

 

Moderator

Re: How do I move a used car out of inventory? When I create a sales receipt it moves the startin...

Hello there, Highland1.

 

It's possible that you've incorrectly assigned an account when you setup an account for the used car. 

 

You'll want to create an adjustment for the affected accounts. With that said, it would be best to reach out to your accountant to guide you on this. They're the best that can advice you on what accounts is best to used for the adjustment.

 

You can share this article to your accountant about journal entry adjustment: Make and view adjusting journal entries.

 

Please don't hesitate to mention me here if I can be of any help again. Thank you.

Level 1

Re: How do I move a used car out of inventory? When I create a sales receipt it moves the startin...

I think I am creating an additional entry by putting the purchase price of the vehicle

as a starting value when I create the car inventory item  I am using 3 accounts - inventory asset, sales income and cost of goods sold. 

 

I am having trouble understanding how quickbooks will show what cars are still in inventory

at the end of the year without having a dollar starting value in there.  I do show the purchase price from the auction house as a COGS expense listed as Vehicle purchase.  

 

QuickBooks Team

Re: How do I move a used car out of inventory? When I create a sales receipt it moves the startin...

The information is indicated in the Products and Services window, HighlandCars.

 

The three accounts you've mentioned are the ones that will be used by QuickBooks when an inventory item is created. You'll also know if the car or an item is still available if there's a number under the Quantity on Hand column regardless if there's a starting value or not. 

 

Just in case you can't see it, click the small Gear icon, then check the box for Qty on hand. You can visit this article for more details: Set up and track your inventory

 

I'be glad to get back here if you need more help with your inventories. Thanks!

 

qty.PNG qty 2.PNG

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