QB Issue Resolution:
OK if you used periodic inventory in 2016, Your income tax form in the cogs section will show an ending inventory balance for that year – that is the number you have to work with when valuing what is on hand to start 2017. Use your physical inventory of what is on hand now, plus any that were sold this year as the starting qty for 1/1/17
see the pic for how an inventory item screen is set up.
This is going to be weird is some ways but it is due to the way QBO works
1. create a dummy bank account called clearing, zero balance
2. plus menu>other>inventory adjust
2a. select the clearing bank as the adjustment account
2b. set the adjustment date to 1/1/17
2c. set the new qty block to zero for all items and save
3. Note the final balance in the dummy clearing bank account and compare it to the ending inventory number from the cogs section on the income tax form.
3a. IF the clearing bank is higher, then create an expense from the plus menu, and as the account use opening balance equity, enter the difference amount – double check the clearing bank balance to insure it matches the number from the IRS form
3b. IF the clearing bank lower, make a deposit, enter the difference amount, and use opening balance equity as the source (from ) account for the deposit
4. If you have inventory items on hand that are not created in QB create them now, enter a starting qty of zero, cost of zero and an as of date of 1/1/17
5. create a dummy vendor called dummy
6. insure this setting is on, in company settings>expenses>bills & expenses turn on the items table and purchase orders.
The balance in the clearing bank account is the total value of your on hand inventory as of 1/1/17 so be sure that you portion that balance out across all items before you start step 7
7. menu plus>expense, select the clearing bank account as the payment source
7a. half way down the screen is item details, click that if the item table is not visible
7b. on each line, select an inventory item, enter the qty on hand as of 1/1/17, and the total cost of that qty
7c. I do not know how many items you can do on one transaction, but I would do 10 at a time and save, then do it again for the next 10 so that no work is lost if a connection breaks
When you are finished, check the balance in the clearing bank account, it must be zero, if so make the account inactive, and make the dummy vendor inactive too.
You now have starting inventory with value and qty in the FIFO inventory asset account in QBO.
Now enter your sales of inventory items since 1/17, you can use a generic customer you create and a sales receipt to do it.
Resolution for Issue 'I’m working to setup inventory / COGS tracking in Quickbooks Online. All of my items are setup in Quickbooks and the relevant items have inventory tracking enabled already (they have had this enabled for some time). I would like to use inventory / COGS reporting for all of the current year (2017) and I have an accurate inventory count for end of year 2016. I also have sales transactions in QBO for 2017. I would like to add my 2016 year end inventory totals to Quickbooks so that the reporting (of COGS and inventory amount) are accurate. Can I simply add an inventory adjust for every item and set the adjustment date to 12/31/2016? Will this adjust my books properly? Will the transactions that occured after 12/31/2016 be properly reflected in the inventory?' available: Yes (Solved).
Source: Intuit Community forum.
I’m working to setup inventory / COGS tracking in Quickbooks Online. All of my items are setup in Quickbooks and the relevant items have inventory tracking enabled already (they have had this enabled for some time). I would like to use inventory / COGS reporting for all of the current year (2017) and I have an accurate inventory count for end of year 2016. I also have sales transactions in QBO for 2017. I would like to add my 2016 year end inventory totals to Quickbooks so that the reporting (of COGS and inventory amount) are accurate. Can I simply add an inventory adjust for every item and set the adjustment date to 12/31/2016? Will this adjust my books properly? Will the transactions that occured after 12/31/2016 be properly reflected in the inventory?: this issue or error code is a known issue in Quickbooks Online (QBO) and/or Quickbooks. Support for this issue is available either by self-service or paid support options. Experts are available to resolve your Quickbooks issue to ensure minimal downtime and continue running your business. First try to resolve the issue yourself by looking for a resolution described below. If it is a complex issue or you are unable to solve the issue, you may contact us by clicking here or by using other support options.
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