I need to clear up old item receipts that were processed incorrectly when I first started my business, my inventory asset shows no inventory value for these item receipts. How do I correct this?
I now know that I should have entered bills against the item receipts, but I didn't know that then. How can I correct this issue now so that my inventory value is right?
I've searched a long time for this answer and there is not a clear one out there.
Is your question regarding QuickBooks or QuickBooks Point of Sale?
The item receipts came over to QB Fin from my QB POS, we have a retail store and my inventory is stored in the POS program. I processed the receiving voucher in POS and checked the box that said prepaid. Because the system was new to me I made the mistake of processing the invoices in QB Fin without matching them to the item receipts that came over from the POS. So they are just hanging out in my Inventory acct with a zero value. It looks like I paid vendors for zero valued inventory and is throwing my balance off. I hope this makes sense, I really appreciate any help you could give me. Thank you.
If I understand your situation, item receipts in QB need to be converted to bills, and then the bills cleared.
Since payments has been made, e.g. by credit card, you could clear the bills using payment method = credit card.
However, if you have already entered the payments in QB this is a problem. Deleting these already entered payments might be a solution.
Richard
these item receipts are from 5 years ago and the with zero value. Its almost impossible to know which payment went to each item receipt. There has got to be a better way?
The bills (liabilities that no longer exist) can be cleared to an “other income” account.
Richard
You can create $0 bills from the $0 item receipts, or if they truly are $0 just delete them - go to the Vendor Center, select the Transactions tab, select Item Receipts for a full list.
Don't delete any items receipts with a value though. Those can be cleared by creating $0 bills too, you just need to add an additional line using whatever account you used on the bill you entered manually with a negative amount offsetting the positive amount on the item receipt.
However, since the item receipts are $0 they can't be causing any problems with your inventory. It's most likely the bills you entered manually that are causing the problem.
There's no easy way to fix this so I recommend making sure the inventory valuation in POS - both quantity and average cost - are accurate and then doing a journal entry in QuickBooks to get the inventory valuation in POS to match the inventory asset balance in QuickBooks.
In the future, I recommend unselecting the option to enter billing info in POS. Once you do, receiving vouchers will create item receipts in QuickBooks with a dollar value. When you receive the bill, use the Enter Bill for Received Items option.
If the bill doesn't match the item receipt you need to adjust both QuickBooks and POS, because inventory info only flows one way - from POS to QuickBooks. Anything you correct in QuickBooks isn't going to flow back down to POS.
Thank you Ruth. We are in the process of conducting inventory counts in our store and once I know it is accurate I will create a journal entry in QB to correct my inventory asset account. Any details you can offer on this is certainly appreciated! I'm a business owner using QB, not an accountant, so thank you, thank you, thank you!
