QB Issue Resolution:

Answer 1:

the problem is your starting value being posted to a liability account

 

the loan should have been entered and off set to a cash type bank account
then you “buy” the inventory items using the cash type bank account
if you do it that way COGS will be right both cash and accrual basis

 

Journal entries should be the exception when using QB, they often do not work as you think they should, and when you use inventory type items they never work for inventory. It is much better to use the forms on the home page the way QB is designed to be used. Journal entries also bypass accrual/cash reporting, and will not show on many reports.

 

Another way to get it done, would have been to create the loan account with a starting balance, that would have posted to opening balance equity

 

then create each inventory item with qty and cost, that also posts to opening balance equity offsetting the loan amount.

 

Answer 2:

You use the Buy/Sell info. Like this:

 

Assets = Liab + Equity

 

So, Inventory and other assets are entered, offset to Equity

Then, Debt is entered, offset to Equity

 

And now Equity shows the Net. That’s why a synonym for Equity is “Net Assets.”

Resolution for Issue 'In entering inventory starting values I assigned them to the long-term liability acct for the note payable. I run on cash basis. Problem I’m finding is that QBO can’t run a hybrid approach with accrual basis on inventory only. Therefore my inventory sold is never expensed to COGS (it shows correct on accrual reports, not cash). Inventory values are adjusting accurately, so I don’t see how to do a dbl entry to adjust COGS without throwing off my inventory. Can I do some type of end-of-year journal entry to correct this? Or backtrack and correct initial entries (this has its own issues as initial year was 2017)?' available: Yes (Solved).
Source: Intuit Community forum.

In entering inventory starting values I assigned them to the long-term liability acct for the note payable. I run on cash basis. Problem I’m finding is that QBO can’t run a hybrid approach with accrual basis on inventory only. Therefore my inventory sold is never expensed to COGS (it shows correct on accrual reports, not cash). Inventory values are adjusting accurately, so I don’t see how to do a dbl entry to adjust COGS without throwing off my inventory. Can I do some type of end-of-year journal entry to correct this? Or backtrack and correct initial entries (this has its own issues as initial year was 2017)?: 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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