Opening Balance Inventory
I am tracking inventory on a spreadsheet, not using Quickbooks inventory module. How do I enter beginning balance into an inventory balance sheet account I have created?
70
71
cLJ6sc_7mr35ZHacfA8pyY
12/04/10 6:35am PST
Viewed by asker 12/04/10 1:59pm PST
Viewed by asker 12/04/10 1:59pm PST
2 Replies
grextrek
Questions asked: 28
Questions answered: 3402
Points earned: 8295
Questions answered: 3402
Points earned: 8295
Allstar
Advisory council of community power users.
12/04/10 6:46am PST
The solution
QB posts the offsetting entry to an Equity account called Opening Balance Equity (O.B.E. for short) when you enter an opening value for a new inventory item.
When you have entered all such beginning balances you will have to analyze the entries in O.B.E. and post General Journal Entries to other accounts until the O.B.E. balance is zero. If some amounts originated in a previous fiscal year, one entry will be to Retained Earnings.
Mechanically, Debit Fixed Assets - and credit Open Balance Equity. Follow-up with a Debit to OBE and a credit to Paid in Capital, or Net Worth depending upon the "entity" (Corporation, Partnership,Sole Proprietorship).
Above is the short answer. Also, consider utilizing Fixed Asset Manager to assist in Depreciation calculations.
It should be closed out to the appropriate equity account (retained earnings) when the set up is complete. OBE should be zero.
Memere
Questions asked: 39
Questions answered: 28238
Points earned: 65044
Questions answered: 28238
Points earned: 65044
Allstar
Advisory council of community power users.
Intuit Moderator
Mod/Co-mod
12/04/10 6:48am PST
Latest post
From Safari818
08/04/10 8:32pm
QB posts the offsetting entry to an Equity account called Opening Balance Equity (O.B.E. for short) when you enter an opening value for a new inventory item.
When you have entered all such beginning balances you will have to analyze the entries in O.B.E. and post General Journal Entries to other accounts until the O.B.E. balance is zero. If some amounts originated in a previous fiscal year, one entry will be to Retained Earnings.
If this answers your question, please click the “thumbs up” or mark this post as "Solved.” If not, please post back with more information.
