Relationship of item receipts to inventory assets and COGS

Thanks for visiting the Community, tygers218.

Allow me to share some information to help make sure your inventory records have the correct information.

Yes, you can go back to your prior years’ inventory to fix the issue. Make sure not to edit the payments posted from the bank since this will affect your reconciliation.

You’ll no longer have to convert the item receipts to bills. All you have to do is link the bill payments to the correct bill to keep your books in order.
Let’s go to the Transactions tab for vendors and run a report for your bills and bill payments. This allows you to view the entries smoothly.

Here’s how:

1. Press the Vendors menu at the top bar to choose the Vendor Center.
2. Tap the Transactions tab and navigate to the Bills section to see all entries added to the company file.
3. Click the Run Report drop-down and select View as a Report.

To build the Bills Payments Report:

1. Hit the Vendors menu at the top bar and select the Vendor Center.
2. Press the Transactions tab and navigate to the Bills Payments section.
3. Tap the Run Report drop-down and choose View as a Report.

Next, review the entries and open each one. From there, apply the payments to the bills. Here’s an article that will guide you on how to efficiently track the money owed to your vendors. It includes some links for each process and screenshots for visual reference: Accounts Payable workflows in QuickBooks Desktop.

I'm adding a guide to help you in the future. It contains resources to manage your inventory, products, and services: Self-help articles. 

Feel free to visit the Community again if you have other QuickBooks concerns. I’ll be glad to lend a helping hand. Have a good one.