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Adjust Inventory Starting Value when Item was created with a 0 starting value and a line item for starting value does not show up in the Inventory Valuation Detail report

Forum|Forum|7 years ago
October 19, 2018
3 replies
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I setup all of my items in quickbooks online with a zero starting value. Assuming i could go back and adjust that value later. I'm trying to make the adjustment now and their is no Inventory Starting Value in the Inventory Valuation Detail Report? Quickbooks says we can update this now but I'm not seeing how in my scenario.

If i can't update what other options do i have?

Can i just go and enter an inventory adjustment for the start date of each item?

or

Enter a new transaction receiving all items into inventory on start date with a zero value?

My start date is 1/1/2015 everything i received in 2014 was accounted for on my 2014 taxes so any inventory carry forward into 2015 has a zero cost for accounting purposes.

I'm new to inventory any suggestions are appreciated. Were a small restaurant/bar. The only inventory I'm currently dealing with is Beer.

QuickBooks Online

Best answer by Rustler

Anther bug then in the community, the community says you are in mexico -

QBO is funny, or rather intuit is weird. They update the software, but not everyone gets the update when it is released, they roll it out gradually. There are currently, that I know of, 4 different versions of QBO+ being used.

The easiest way to get this done, is ..
create a cash bank type account called owners
create a dummy vendor called dummy
Using the item detail part of a check, "write a check" on the owner cash account and "buy" the items from the dummy vendor, select each inventory item, enter the qty and the total cost, save
the owner bank account will now be negative
Open the account register from the chart of accounts and make a new entry as a deposit (increase) in the total amount the account is negative and select owner equity, or owner equity investment as the account for the entry. (you could also use make deposits and use the equity account as the source (from) account for the deposit).

That will stock the items in qty and associated cost, and your equity will increase by the same value

The above assumes you are a sole proprietor or partnership when you file your taxes, LLC does not come into play for this.

RustlerAnswer

Anther bug then in the community, the community says you are in mexico -

QBO is funny, or rather intuit is weird. They update the software, but not everyone gets the update when it is released, they roll it out gradually. There are currently, that I know of, 4 different versions of QBO+ being used.

The easiest way to get this done, is ..
create a cash bank type account called owners
create a dummy vendor called dummy
Using the item detail part of a check, "write a check" on the owner cash account and "buy" the items from the dummy vendor, select each inventory item, enter the qty and the total cost, save
the owner bank account will now be negative
Open the account register from the chart of accounts and make a new entry as a deposit (increase) in the total amount the account is negative and select owner equity, or owner equity investment as the account for the entry. (you could also use make deposits and use the equity account as the source (from) account for the deposit).

That will stock the items in qty and associated cost, and your equity will increase by the same value

The above assumes you are a sole proprietor or partnership when you file your taxes, LLC does not come into play for this.

B

booksbyschmidt

Could this example be done in current year if the starting values were entered with 0 back in 2017 and even some in 2018? And if so, what offsetting account would you use instead of Equity?

Rustler

My start date is 1/1/2015 everything i received in 2014 was accounted for on my 2014 taxes so any inventory carry forward into 2015 has a zero cost for accounting purposes.

That depends on how you were accounting for inventory last year. Inventory on hand at the end of the year is supposed to be carried as an asset so that the cost of what is on hand is not expensed on the P&L.

That is an issue you need to talk to your tax accountant about, I am not familiar with Mexico's accounting rules.

If you have zero starting qty and value on 1/1, why do you think you need to adjust value? Which you can not do anyway in QBO. Or are you saying you started inventory with a qty on hand, but a zero value for that qty?

But your post says that you feel there is no starting qty and value for this year so I am confused as to what needs to be done.

You must have plus to have inventory in QBO - do you have a QBO plus subscription?

A

arkvalleyinfoAuthor

That is an issue you need to talk to your tax accountant about, I am not familiar with Mexico's accounting rules.
     My business is not in Mexico, I'm an American Citizen and the business is located in MS.

Inventory was not kept up with in quickbooks for 2014.  My accountant will add a value to the starting inventory qty.  Example
On 1/1/2015 we had 50 Bud Lights on hand with a cost of $0.00.  The inventory valuation detail report does not show a starting qty or cost. I would like to go and add the starting qty.  You say this is not possible but quickbooks made this option available in their February update.
<a rel="nofollow" target="_blank" href="http://quickbooks.intuit.com/blog/quickbooks-online-release-notes-february-2016/?referrer=qboalert">http://quickbooks.intuit.com/blog/quickbooks-online-release-notes-february-2016/?referrer=qboalert</a>

my qty on 1/1/2015 shows zero and it was not zero that is why i need to adjust.  the count should match everytime i check it.

Yes I have QBO Plus subscription

E

evelynmanspeaker

I recently corrected my inventory valuation, as 50 items had zero unit cost, resulting in an incorrect valuation report when subsequent items were added with cost. I started with year end financial statements and with a valuation report with all dates - back to 2016, brought this into excel, and added columns for 2016, 2017 and 2018 so I could track my changes. I went into each starting inventory entry and added the unit cost. When the entries were saved, the value was calculated for the initial entry and for all subsequent entries that processed with zero cost of goods sold. I tracked these changes for each year. When finished, I did journal entries for the opening inventory account, cost of goods sold, inventory over/short, and the balance sheet store inventory account for each year, to match the financial statements for prior years. Now my 2018 inventory items all have Cost of Goods Sold on the Sales report.

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