Your yarn is an inventory asset, as is the yarn you buy in the future. Supplies are other types of expenses, such as needles, shuttles. You can post all these to COGS  when purchased but need to adjust out to inventory on hand periodically or at least at year end.

To post […]

Resolution for 'beginning inventory issue: 'I have a knitting business and I’m confused about how to enter my existing supply of yarn (bought prior to starting up.) Is it an asset?' available: Yes.

The beginning inventory 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 beginning inventory issue yourself by looking for a resolution described in the article. If it is a complex beginning inventory issue or you are unable to solve the issue, you may contact us by clicking here or by using other beginning inventory support options.

For more information about resolving issues related to beginning inventory in Quickbooks/QBO or to get support for the issue 'I have a knitting business and I’m confused about how to enter my existing supply of yarn (bought prior to starting up.) Is it an asset?', click the link below: