Short-Term Inventory Asset

SSLOG · ‎February 05, 2023

I am categorizing some expenses as Short Term Inventory Assets when I create a bill. Later, when we invoice a customer, I will use a journal entry to debit COGS and credit Inventory Asset. (The reason for this is to capture expense and sales in a similar timeframe and avoid big swings of expense and/or profit on our P&L.)

My question: I just tried to run an Inventory Valuation Summary Report to see a list of our existing short term inventory asset items, and the report show 'no data' even when I mark 'all dates.' Does this report not include short-term inventory assets and maybe only longer term / capitol investments? Is the only way to see my short term inventory asset detail to go to our Chart of Accounts and click on Short Term Inventory Asset ==> run report?

I am new to bookkeeping and wonder if there is a flaw in this procedure we are just now implementing for 2023 to use short-term inventory assets or if I just don't understand what an Inventory Valuation Summary Report actually is..... any insight to help me have confidence I am doing this correctly would be much appreciated!

Rainflurry · ‎February 06, 2023

@SSLOG

For QBO to track inventory, you should set up each item as an inventory item and then receive items via a bill or PO. Assign the expense account to COGS and the income account to an income account. Then, when you receive an item, QB will add it to your inventory asset account. When you invoice a customer for the sale of a product, QB automatically creates the journal entry to remove the item from inventory and book COGS (debit COGS, credit inventory). There is no need to make any additional journal entries. The Inventory Valuation Summary is item-based, therefore journal entries do not affect that report.

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Nicole_N · ‎February 05, 2023

Hi, @SSLOG. I'm happy to share some information you need when running an Inventory Valuation Summary report in QuickBooks Online.

An Inventory Valuation Summary report displays the summarized data of quantity on hand, monetary cost, short-term inventory assets, and the average cost of your assets. Note that only active inventory items shows in this report.

If you have active inventory items that weren't shown in the report, you can try to customize them to focus on the details that matter to you.

However, if it still shows no data even after customizing, you might be experiencing browser issues. Sometimes the browser stores accessed data, causing websites like QuickBooks Online to act weirdly. Let's try logging in to your QBO account using a private browser and run the report.

You can use these shortcut keys to access a private window or an incognito:

Ctrl+ Shift + N for Google Chrome
Ctrl + Shift + P for Mozilla Firefox
Ctrl + Shift + P for Edge
Command + Shift + N for Safari

Once done, try to run the report. If it works, go back to your regular browser, and let's clear the cache to fix unexpected behavior in the product.

If the same thing happens, use other supported web engines to learn what computer and browser are needed for the best experience when using QuickBooks.

I'm attaching this article where you can learn more about inventory tracking in QuickBooks Online: Set up and track your inventory.

Don't hesitate to reach back if you have additional questions about inventory reports. I'll be here in the Community space. Stay safe, and have a great day!

SSLOG · ‎February 05, 2023

I tried using an incognito browser, and still the report shows no data.

==> Are Short Term Inventory Assets supposed to be included in this report?

SSLOG · ‎February 05, 2023

Also, to rule out other issues, I am using a PC running Windows 11 and using Chrome for my browser -- just check and it says my version is up to date.

FateCandylaneT · ‎February 05, 2023

It's great to have you back in this thread, SSLOG. I'm here to share additional insights to ensure these asset items will show on the Inventory Valuation Summary report.

Yes, you're right. Short-term inventory assets are included in this kind of report, and I appreciate you for doing the troubleshooting steps provided by my colleague above. To further verify these short-term inventory assets were linked to your Asset account, let's check the transactions recorded from the bank registers. Doing so would help us ensure that these are in the correct account type. To do that:

Go to the Gear icon and select Chart of Accounts.
Choose the bank account and click View register under the Actions column.
Individually review these transactions to verify they are in the correct account type.

Also, let's ensure that all these inventory items are active. Once transactions are confirmed, let's run the Inventory Valuation Summary report.

If the issue persists after doing the additional steps above, I suggest contacting our Customer Care Team. This way, they can further check and pull up the account to identify what's causing these data not to show on the report. Also, they can do screen-sharing to review your transactions and would address your concern in real time.

Moreover, you'd want to visit this article that you may utilize in the future:

It contains detailed steps and information to guide you on how to save the customization settings and export these reports if you'll want to use them outside of QuickBooks.

Let us know in the comments below if you have additional questions about running reports in QBO. We'd be delighted to have you back in this forum. Take care!

Rainflurry · ‎February 06, 2023

@SSLOG

For QBO to track inventory, you should set up each item as an inventory item and then receive items via a bill or PO. Assign the expense account to COGS and the income account to an income account. Then, when you receive an item, QB will add it to your inventory asset account. When you invoice a customer for the sale of a product, QB automatically creates the journal entry to remove the item from inventory and book COGS (debit COGS, credit inventory). There is no need to make any additional journal entries. The Inventory Valuation Summary is item-based, therefore journal entries do not affect that report.

SSLOG · ‎February 06, 2023

Thank you for this detailed information. I will read about setting up inventory and reply once I better understand this solution. Thank you!

SSLOG · ‎February 17, 2023

Thank you.. this is the answer to my question!

AlcaeusF · ‎February 28, 2023

Hello Rainflurry,

I have reviewed the solution you’ve shared and it's correct and accurate. Thank you for sharing your inputs to help address the issue.

We love to see members supporting one another! Have a great day.

Martini Mates · ‎September 07, 2023

What if your Inventory Assets are the items you use to produce a "widget" that you sell? You aren't reselling the inventory asset items so their COGs are irrelevant. So how do you add the new inventory of "widgets" produced, and assign COGs to that item being sold? Also how do you deplete your inventory asset quantity based on usage for production of "widget"..?

Rainflurry · ‎September 07, 2023

@Martini Mates

Start a new thread for that question. This thread is marked 'Solved'.

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Short-Term Inventory Asset