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Inventory transactions show in ledger without a value

Forum|Forum|7 years ago
December 19, 2018
11 replies
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I set-up inventory tracking and created "inventory" items in Products and Services. I put a cost on the inventory but read an earlier thread that the cost comes from the acquisition of inventory. I have since processed vendor bills with these same items and cost. When I run an inventory valuation report it shows the values of these items. When I look at the ledger in Cost of Goods Sold or inventory transactions it shows as zero value. I have processed transactions after the date of the vendor billing and still no value. I also tried to change the value of the COGS entry by editing the transaction register but it will not allow me to do that. Am I missing something in the set-up? Is there another way to fix the transactions already processed with zero COGS?

Thank you.

QuickBooks Online

Best answer by Malcolm Ziman

@bglynn58 wrote:
Yes these transactions were generated from the sales transaction (the same is true if I make an inventory quantity adjustment). We operate on an accrual basis. The sales booked ok against AR and have subsequently been paid.

I have attached a copy of the GL Inventory account. The bill from the vendor was processed previously and is reflected in the balance at the top. As you can see from the transactions (I entered an inventory adjustment today to show this) they still do not pick up a value. If I run the inventory valuation report the values reflect properly in that report. The purchase date is before the sale date for most transactions, however the purchase (vendor invoice) is in AP but has not been paid (terms are 60 plus days). I have attached the GL for AP showing this.

It does not matter if bills or invoices are paid or not for inventory valuation

Some questions that come to mind:

- In the Bill on 9/24 did you use the same item as you used in the invoices?

- When you set up the inventory item did you enter a quantity, but zero cost?

- Did you leave the default linked accounts (for COGS and Inventory) in the inventory item set-up screen?

A screen shot of the Inventory Detail report for this item would be useful

M

Malcolm Ziman

Level 4

@bglynn58 wrote:
When I look at the ledger in Cost of Goods Sold or inventory transactions it shows as zero value. I have processed transactions after the date of the vendor billing and still no value.

Are these sales transactions? There is no COGS until there are sales.

There should be a value in the inventory register. Make sure the linked account is right.

Also make sure the purchase date is before the sale date

B

bglynn58Author

Yes these transactions were generated from the sales transaction (the same is true if I make an inventory quantity adjustment). We operate on an accrual basis. The sales booked ok against AR and have subsequently been paid.

I have attached a copy of the GL Inventory account. The bill from the vendor was processed previously and is reflected in the balance at the top. As you can see from the transactions (I entered an inventory adjustment today to show this) they still do not pick up a value. If I run the inventory valuation report the values reflect properly in that report. The purchase date is before the sale date for most transactions, however the purchase (vendor invoice) is in AP but has not been paid (terms are 60 plus days). I have attached the GL for AP showing this.

B

bglynn58Author

@bglynn58 wrote:
Yes these transactions were generated from the sales transaction (the same is true if I make an inventory quantity adjustment). We operate on an accrual basis. The sales booked ok against AR and have subsequently been paid.

I have attached a copy of the GL Inventory account. The bill from the vendor was processed previously and is reflected in the balance at the top. As you can see from the transactions (I entered an inventory adjustment today to show this) they still do not pick up a value. If I run the inventory valuation report the values reflect properly in that report. The purchase date is before the sale date for most transactions, however the purchase (vendor invoice) is in AP but has not been paid (terms are 60 plus days). I have attached the GL for AP showing this.

It does not matter if bills or invoices are paid or not for inventory valuation

Some questions that come to mind:

- In the Bill on 9/24 did you use the same item as you used in the invoices?

- When you set up the inventory item did you enter a quantity, but zero cost?

- Did you leave the default linked accounts (for COGS and Inventory) in the inventory item set-up screen?

A screen shot of the Inventory Detail report for this item would be useful

Hi Malcolm,

- Yes we used the same items on the vendor bill (it brought them in from the purchase order we set up) and they are the same SKU.

- We did set the items up with no quantity originally. We tried to set-up an estimate or customer order and it would not work unless we had a quantity on hand. We went back and edited the SKU and added in a quantity (at this point I don't know that we had the cost on the item). See attached inventory valuation. It shows the first 500 were entered at 0 cost. I suspect if I back date an adjustment for 500 units this might fix it - right?

- Yes we left the default accounts for sales and cost of sales alone.

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