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nyc1
Level 2

understated inventory valuation

We're using Enterprise wholesale edition version 18.

It appears our inventory value (total) is artificially lowered because of open PO’s (for items our vendor doesn't have in stock yet). It appears our Quickbooks inventory values only change after we enter the vendors invoices, and the vendor can't invoice for something they can't ship yet.

This situation is misstating (showing an artificial lower value) of our inventory. This becomes a problem at year end for tax reporting. Can anyone provide some guidance please?

1 Comment 1
JasroV
QuickBooks Team

understated inventory valuation

Hello there, @nyc1.

 

QuickBooks Desktop (QDBT) doesn't add inventory value that is entered on a purchase order (PO). Thus, it shows artificial lower value in your inventory.

 

Once you create a bill or item receipt from the PO, QuickBooks will add it to your inventory value. To learn more about inventory in your QBDT, I recommend checking our Inventory and projects page to learn some best practices in managing your inventory.

 

You can also check our Help articles page for reference. From there, you can read helpful articles that can guide you in future tasks.

 

Let me know in the comment section if there's anything else you need help with. I'll be around to assist you. Stay safe and take care!

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