Inventory Asset Value Adjustment

Hi, @Japan2023. I'm here to ensure you'll be able to adjust the inventory asset value to zero.

Incorrect costs and initial quantities entered during setup lead to incorrect inventory asset account values. Here's how you can fix it:

1. Go to Settings ⚙ and select Products and Services.
2. Highlight the item, then select Edit from the Action column.
3. Select Starting Value.
4. Select Got it.
5. Enter the item's correct date and cost.
6. Select Save and Close.

Then, you can record a Journal Entry to balance your books. But before that, I'd recommend consulting with your accountant to get guidance on handling your accounts accurately. If you don't have one, please visit this link: Find an accountant.

See this article to understand more about the concept used by businesses in tracking inventory: FIFO and how is it used for inventory cost accounting.

Also, you can utilize this guide to track your inventory items, such as your best sellers, what's on hand, and the cost of goods in the future: Use reports to see your sales and inventory status.

Please don't hesitate to reply on this thread if you've got more queries about handling items in QuickBooks Online. I'll be here to assist you further.