Thank Rustler, I am almost there. So if I do the above, will the entry just stay in the equity account once I move them from OBE? I may very well be over thinking this. How does QB know the entry I just moved to equity is inventory dollars? Thanks! Vern
... View more
Although this is an old business with a new quickbooks file, we are actually closing the legal entity of the old company and starting a new company. We don't want any balances carried over from the old company. We essentially want to take the inventory from the 'old' company and put it into the 'new' company. Also, all the customers will start off with $0 balances. Is it as simple as that, or am I missing any key concepts? I found this response from Rustler and it 99% answered my question:
Do a physical inventory, set the total value for the qty on hand for each item.create the inventory items, you can do that via excel and import them, Bring up inventory adjust, set the adjusting account to opening balance equity, click through any warning boxes.Enter the new total value for the item then enter the new qty do that for each item.That will put the cost of the items in QB, and the total of inventory will be in opening balance equity as it should be.Create all bank accounts and enter an opening balance - that also puts the asset value in opening balance equity automatically.
You will need to do journal entries to allocate opening balance equity to the owners, see this entry and the one that follows it in the tag list on the left.
We have done our physical inventory and are ready to enter the quantities. My question is if we use the Opening Balance Equity account, will inventory subtract and be accounted for properly? COGS etc.. We are a VERY small company and have never had need for a CPA or accountant. I am learning bookkeeping 101 on the fly. I appreciate any help you can give. Thanks in advance!
... View more