How do I correctly add inventory total in quickbooks ?

KAOS · ‎February 10, 2019

Hello, I am trying to enter an inventory total in quickbooks desktop, I do not want to track inventory as my point of sale does that I simply want an asset account with the total combined inventory amount, This is a restaurant so i made an other current asset account and called it food inventory, what i am unsure about is what account to take the amount from, would I take it from my food purchases account which is a cost of goods sold account which lowers my cost of goods sold in profit and loss report so the inventory amount would not be deducted on taxes at the end of the year ? is this how i should be doing it or is there a better way ?

Also, When I acquired the business I also acquired the debt that came with it, there was a line of credit loan made to the business of approximately 5,800.00 but there was approximately 1,800.00 in there bank account, I set quickbooks up under new company name transferred the 1800.00 to the new business checking account and put in the remaining 4000.00 out of my own pocket and paid the debt, to track this in QB i transferred 4000.00 from owners equity to bank account, then made entry in bank account for 5,800.00 paying line of credit to miscellaneous expense account and made an entry in the bank account for the 1800.00 that came from the previous account also to misc. expense account which lowered the total for misc. expense since the 1800 wasn't an expense of mine. Is this ok to do this way or did i do it totally wrong ?

help qbteachme !!! :smileyhappy:

Anonymous · ‎February 10, 2019

Your doing pretty good ...

The inventory you described is totally right. You are doing periodic inventory, without using QB inventory items. The Food Inventory asset is set manually to the correct value and the other side of that entry (plus or minus) is an adjustment to the Food expense (COGS).

The bank loan issue is close but not completely right.

Yes to the posting of the $4000 cash/equity deposit

But the $1800 initial cash and $5800 initial debt should have been included in the total list of what you bought with the business and posted as opening balances to those balance sheet accounts. This means you effectively add $4000 to the total purchase price - what asset that is allocated to is up to you.

There should be no 'misc expense' entry resulting from this transaction.

qbteachmt · ‎February 10, 2019

Your original Trial Balance included:

Assets = Liability + Equity

You have $1,800 funds and $5,800 Debt Liability. For only the part you asked about:

Make Bank Deposit = $1,800; from Equity.

Make Bank Deposit = $4,000; from Equity.

Make the first entry for the loan: Debit Equity and Credit $5,800 Other Current Liability.

Enter the payment as if that is a Check. List the $5,800 against the Loan Account. Nothing here hits the P&L at all. This is Expenditure, not Expense.

You might also have Assets in that buy/sell agreement. You need to work with your own CPA to get the Trial Balance on track for all data.

KAOS · ‎February 11, 2019

Ok... Thank you guys for your responses, I will get it changed :smileyhappy:

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How do I correctly add inventory total in quickbooks ?