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March 6, 2024
Question

Transfer Inventory to Corporation as Shareholder loan

  • March 6, 2024
  • 1 reply
  • 0 views

Hello.

I worked as sole proprietor, and later opened a corporation and transferred the inventory into corporation as shareholder loan.

In QB Online Plus I shown this transfer by two transactions in different times – one is “Inventory Starting Value” and the second is “Bill”. As the result, both added the inventory into QB, but both of them affect on accounts wrong.

I would appreciate for advice how to fix both transactions, so that they should add inventory in items (but not as total amount) and affect on proper accounts:

1) “Inventory Starting Value” affected on the “Opening balance” account and changed it from 0, as it should be, to the amount of goods.

2) “Bill” added cost of goods to “Account payable”, but not to “Shareholder loan” account.

 

P.S. I know how to transfer Inventory to Corporation through Journal Entry, but it allows to enter the total cost of inventory. However, I need to transfer inventory in separate goods in pieces to use FIFO.

Thank you.

1 reply

March 6, 2024

Hello SergeiG,

 

Welcome back to the Community. QuickBooks is a powerful program that helps you to manage your accounting with ease. I'll be glad to point you in the right direction so you can get back to doing what you enjoy. 

 

Recording your transactions the right way is essential for ensuring your books remain accurate. That said, I recommend consulting an accounting specialist for expert advice. You can get in touch with an accounting professional using this link here. Other accounting professionals are able to see this post in the Community and this will allow them to chime in. 

 

Let me know if this info helps. I'm here to steer you in the right direction.

SergeiGAuthor
March 6, 2024

@JamesM4 Thank you for the advice.


I has an accountant, who works with another accounting SW than QB.

 

Let's simplify my question. Let's imagine that I would like to do may first transfer of goods as individual items (not a general amount) to corporation as shareholder loan.

What is the standard step-by-step procedure for it from QB point of view?

March 6, 2024

Thanks for getting back to me. To confirm, are you looking for ways to transfer the inventory using methods that go beyond the Journal Entry?