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SSLOG
February 5, 2023
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Short-Term Inventory Asset

  • February 5, 2023
  • 3 replies
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I am categorizing some expenses as Short Term Inventory Assets when I create a bill. Later, when we invoice a customer, I will use a journal entry to debit COGS and credit Inventory Asset. (The reason for this is to capture expense and sales in a similar timeframe and avoid big swings of expense and/or profit on our P&L.)

 

My question: I just tried to run an Inventory Valuation Summary Report to see a list of our existing short term inventory asset items, and the report show 'no data' even when I mark 'all dates.' Does this report not include short-term inventory assets and maybe only longer term / capitol investments? Is the only way to see my short term inventory asset detail to go to our Chart of Accounts and click on Short Term Inventory Asset ==> run report?

 

I am new to bookkeeping and wonder if there is a flaw in this procedure we are just now implementing for 2023 to use short-term inventory assets or if I just don't understand what an Inventory Valuation Summary Report actually is.....   any insight to help me have confidence I am doing this correctly would be much appreciated!

Best answer by Rainflurry

@SSLOG 

 

For QBO to track inventory, you should set up each item as an inventory item and then receive items via a bill or PO.  Assign the expense account to COGS and the income account to an income account.  Then, when you receive an item, QB will add it to your inventory asset account.  When you invoice a customer for the sale of a product, QB automatically creates the journal entry to remove the item from inventory and book COGS (debit COGS, credit inventory).  There is no need to make any additional journal entries.  The Inventory Valuation Summary is item-based, therefore journal entries do not affect that report. 

3 replies

Nicole_N
Nicole_N
February 5, 2023

Hi, @SSLOG. I'm happy to share some information you need when running an Inventory Valuation Summary report in QuickBooks Online.

 

An Inventory Valuation Summary report displays the summarized data of quantity on hand, monetary cost, short-term inventory assets, and the average cost of your assets. Note that only active inventory items shows in this report. 

 

If you have active inventory items that weren't shown in the report, you can try to customize them to focus on the details that matter to you.

 

However, if it still shows no data even after customizing, you might be experiencing browser issues. Sometimes the browser stores accessed data, causing websites like QuickBooks Online to act weirdly. Let's try logging in to your QBO account using a private browser and run the report.

 

You can use these shortcut keys to access a private window or an incognito:

 

  • Ctrl+ Shift + N for Google Chrome
  • Ctrl + Shift + P for Mozilla Firefox
  • Ctrl + Shift + P for Edge
  • Command + Shift + N for Safari

 

Once done, try to run the report. If it works, go back to your regular browser, and let's clear the cache to fix unexpected behavior in the product. 

 

If the same thing happens, use other supported web engines to learn what computer and browser are needed for the best experience when using QuickBooks.

 

I'm attaching this article where you can learn more about inventory tracking in QuickBooks Online: Set up and track your inventory.

 

Don't hesitate to reach back if you have additional questions about inventory reports. I'll be here in the Community space. Stay safe, and have a great day!

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SSLOGAuthor
February 5, 2023

I tried using an incognito browser, and still the report shows no data.

 

==> Are Short Term Inventory Assets supposed to be included in this report?

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SSLOGAuthor
February 5, 2023

Also, to rule out other issues, I am using a PC running Windows 11 and using Chrome for my browser -- just check and it says my version is up to date.

 

Rainflurry
RainflurryAnswer
February 6, 2023

@SSLOG 

 

For QBO to track inventory, you should set up each item as an inventory item and then receive items via a bill or PO.  Assign the expense account to COGS and the income account to an income account.  Then, when you receive an item, QB will add it to your inventory asset account.  When you invoice a customer for the sale of a product, QB automatically creates the journal entry to remove the item from inventory and book COGS (debit COGS, credit inventory).  There is no need to make any additional journal entries.  The Inventory Valuation Summary is item-based, therefore journal entries do not affect that report. 

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SSLOGAuthor
February 6, 2023

Thank you for this detailed information. I will read about setting up inventory and reply once I better understand this solution. Thank you!

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antoncleverence
February 17, 2025

Hello!

It looks like the Inventory Valuation Summary Report in QuickBooks may not be including short-term inventory assets because QuickBooks typically tracks inventory using inventory-type items rather than journal entries. This report is designed to show inventory on hand for items categorized as inventory, not assets recorded via journal entries.

To check your short-term inventory assets, try:
1. Running a report from the Chart of Accounts for the Short-Term Inventory Asset account.
2. Using a custom report like the Balance Sheet or General Ledger filtered for this account.

If you need a real-time inventory tracking solution that integrates with QuickBooks and supports barcode scanning, consider Warehouse 15 for QuickBooks. It helps track inventory movements, scan barcodes, and manage warehouse operations efficiently [Removed]

 

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