We migrated from QB Desktop Enterprise to QB Online on July 1st. All of our inventory got pulled over to starting inventory values dated 6/30/25, which has caused a few issues but one very major one. We've noticed our Inventory account has gone increasingly negative and we've had Bills for Inventory items showing up in COGS, which is causing double expenses to our COGS.
We've found the issue by looking at the Audit History for various bills. Bills with inventory items that are dated AFTER 6/30/25 are entering the system correctly - They increase Inventory Assets and Accounts Payable accounts, and are not expensed to COGS until a Sales Receipt or Invoice is completed. This is correct. However, any bills dated PRIOR to 6/30/25, if they are modified in any way (paid, closed, a memo/description is modified) and the bill is re-saved, QBO is automatically changing the account from Inventories to COGS.
I believe this is happening because according to Quickbooks Online, our Inventory "start date" or the day we "started tracking inventory", is marked at 6/30/25 due to those inventory starting dates/qtys. Because of this, when these older bills are opened, QBO automatically is changing to COGS because it decides that we weren't tracking inventory at that date. But of course, at the time, pre-migration, these bills were in fact bringing items into Inventory.
I believe this is a programming error on the backend due to the way migrations are done. I've been in contact with QB support for days now trying to find someone who can figure this out. In the meantime...does anyone else have experience with this or have any advice?
