QuickBooks Desktop: Inventory Issues (Part 1 of 2) Troubleshooting

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Part 2: Fix Inventory Issues in QuickBooks Desktop: • QuickBooks Desktop: I...
Timestamps:
00:00 - Beginning Balance + Purchases - Cost of Goods Sold = Ending Inventory Balance
01:25 - Overstated vs. Understated Inventory, and Net income issues
06:19 - Comparing the Inventory Valuation Report vs. Balance Sheet's Inventory Asset Value
09:35 - Inventory Adjustments with WRONG adjustment account
10:27 - Inactive Inventory items with balances
14:22 - When zero QOH items carry an asset value other than zero
How to quickly know if inventory is “off”?
Inventory Valuation Summary does not match Balance Sheet
Asset Value in Inventory Valuation Summary doesn’t “feel” right
Potential Causes:
-Journal Entries affecting Inventory Asset account
-Inventory adjustment using the Inventory Asset account as the adjusting account
-Inactivated Inventory Items with a QOH other than zero
-Using wrong units of measure on transactions
-Using wrong items on transactions (similarly named)
-Negative QOH on inventory items
-Inventory items with zero QOH retaining a balance in the valuation report
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[@tmcvp4]

Good. Amount can be adjusted by increasing any inventory amount?

[@mayalilagaming]

The Inventory Items with zero QOH that has an Asset Value zero --- what account is the value adjustment made to?

[@HectorGarciaCPA]

COGS

[@ana81267]

I have a different issue that I'm not sure how to solve. My company switched accounting software three times from Sage 50 / QB/Stone Profits. After migrating to QB in the middle of the year, Intuit team converted the Sage data to QB format, but they moved my inventory as a non-inventory item, which caused a problem. I had to manually convert non-inventory items to inventory items, and before I finished, we switched again to the industry-specific software. They transferred everything from QB and asked for inventory files in Excel format. My balance sheet now shows a negative balance in the 1000-inventory clearing account, despite the fact that the 1001-inventory account is correct and matches the inventory valuation report. How do I remove the incorrect negative value from my inventory clearing account, which is reducing my total current asset? Could you please advise me on how to resolve this issue? Thank you 🙏

[@HectorGarciaCPA]

This is going to require a massive inventory adjustment and cleanup
OR could be as a simple as a journal entry, it’s impossible to tell from this vantage point.

[@ana81267]

CPA Hector Garcia
I was thinking about making a journal entry to solve this problem, but I'm not sure which gl account to use to offset this negative balance. What would you recommend, thanks for the help 🙏

[@HectorGarciaCPA]

@@ana81267 I cant make an accounting recommendation in this context. If you want to setup a formal diagnosis, contact my office so a senior accountant can look at your account and make a formal recommendation