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Noverhead
October 8, 2023
Question

How to convert to 'Inventory Part' and assocciate pre-existing value in 'Inventory Asset' account?

  • October 8, 2023
  • 2 replies
  • 0 views

Greetings,

 

I have a product 'WIDGET' that I have been selling as a Non-Inventory part, though I do keep a loose count of. Historically, associated value between between CASH, INVENTORY ASSET, and COGS has been accomplished at EoM with General Journal entry.  Assuming that I have $100 worth of this item sitting in INVENTORY ASSET account, how can I associate this value with 100 units as a Stock Item so that QuickBooks can start managing COGS transfer automatically during the Invoicing process?

 

Thanks.

2 replies

R
Rea_M
October 8, 2023

Hello, Noverhead.

 

We can edit your item type (non-inventory to inventory) and associate its pre-existing value, so QuickBooks manage the COGS transfer automatically during the Invoicing process. I'll guide you through the process below.

 

You can easily change an item's type from non-inventory to inventory in QuickBooks Desktop (QBDT). However, please know that this action is irreversible. Once you've converted your non-inventory item to inventory, you're unable to change its type again.

 

Moreover, while you're in the Edit Item page, enter the 100 units value in the Total Value field to associate your non-inventory item's pre-existing value. Whenever you're ready to edit your item, here's how:

 

  1. Go to Lists, and select Item List (for Windows) or Items (for Mac).
  2. Double-click the item you want to change.
  3. Select Type, then choose the new item type (Inventory).
  4. A pop-up window will appear that the action is irreversible. Click OK to confirm.
  5. Go to the Inventory Information section and input the 100 units value in the Total Value field.
  6. Click OK.

 

To know more about the process above, please see this article: Add, edit, and delete items in QuickBooks Desktop (Edit items section).

 

Once you're done, associate the item to your invoice and manage its quantity accordingly.

 

Additionally, you can use categories to keep your items organized and get helpful insights when running reports in QBDT. If you want to know more about this process, check out this article: Use item categories in QuickBooks Desktop.

 

Don't hesitate to keep in touch if you need anything else about managing inventory items in QBDT. As always, the Community is here to attend to your concerns.

N
NoverheadAuthor
October 10, 2023

Thanks for the reply, but the solution you described adds value to Inventory Asset and changes the balance sheet...not what I'm looking for.

MJoy_D
MJoy_D
October 10, 2023

You're welcome, Noverhead. We're always happy to assist you.

 

I can share additional information about handling your inventory items.

 

When it comes to posting these items to the correct account, it's best to consult your accountant. They are the experts when it comes to handling these kind of transactions. 

 

Check out the following article for more information about turning on advanced inventory: Set up Advanced Inventory. It'll let you track inventory stored at different sites or locations.

 

Then, here's how you process or record customer payments after creating an invoice: Record an invoice payment.

 

If you have any other questions or concerns about your inventory or anything else, feel free to reach out anytime. The Community is always available to lend a hand. Have a great day!

A
ACU
December 14, 2023

I have the exact same issue.  Where you able to find a solution?

 

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