QuickBooks Inventory – Startup Balances

Entering Beginning Inventory Balances

Because you will often create your inventory items days or weeks before you begin actually using your QuickBooks data file, rather than entering an opening balance for the inventory item when you create the inventory list item you should instead create an inventory adjustment to record the beginning balance quantities when your set up work is complete. Then, create an inventory adjustment to record the on-hand quantity and value adjustment following these steps:

1. Click Vendors, Inventory Activities and select the Adjust Quantity/Value on Hand menu.
2. On the Adjust Quantity/Value on Hand dialog that opens, enter an Adjustment Date; if this  entry is to put the original inventory quantity count into QuickBooks, the date selected  should be one day before your QuickBooks start date.
3. Enter a Ref. No.
4. Enter an Adjustment Account; if this entry is to put the original inventory quantity count into       QuickBooks, use the Opening Bal Equity account. QuickBooks warns you that you are not  using an income or expense account. For this beginning inventory adjustment only, you can  ignore this warning. The warning provided when you enter an inventory adjustment to a non- income or expense account.

You can learn more about inventory adjustments in Chapter 10, “Reviewing Inventory” in the QuickBooks 2010 Solutions Guide, www.quick-training.com/book.html