How I Fixed Inventory I've Imported in QuickBooks Online (Fixing Opening Balance Equity)
Inventory and QuickBooks Online
Today was one of those days lol! I was stressing out on figuring out how to record my clients inventory in QuickBooks Online. My client is using Lightspeed Retail POS. It keep records of sales and inventory. It is also a merchant account in itself. But the Lightspeed people could not connect the Lightspeed accounting to Lightspeed POS and QuickBooks Online. So I figured maybe I can just import the inventory report from Lightspeed to QuickBooks Online. Well, wrong because if I do that the recording of sales has to affect the inventory in QBO in order for it to create a proper report. Which was hard to do if you are using a third party like Lightspeed, InventoryLab or what have you to process your sales. I have to record it in summary in QuickBooks…Daily summary.
Anyway I do not want to bore you with my problem. I want to show you how I fixed the import of inventory and trying to make the Product and services items inactive that affected the Opening Balance Equity.
When I downloaded the Inventory in Quickbooks Online it adjusted the Opening Balance Equity.
Meaning:
Inventory Asset xxxx
Opening Balance Equity xxxx
Now, When I realized that I couldn’t keep up with this type of recording I wanted to delete the Inventory I imported to Quickbooks so I went to Products and services and did a batch action “Make Inactive”. What I did not know is that it did made my Inventory Asset back to ZERO but it also created an adjusting entry to Inventory Shrinkage. The Opening Balance Equity remained the same.
Meaning: (When I made the Products and Services I imported Inactive)
Inventory Shrinkage xxxx
Inventory Asset xxxx
So to correct my mistake….ready for this…. lol!
Make an adjusting entry journal:
Opening Balance Equity xxxx
Inventory Shrinkage xxxx
So now your Opening Balance Equity is back to where it was before the mistake hehehe! Your Inventory Asset is back to zero and your Inventory Shrinkage is zero also. Whew! This is a lot easier than purging your whole Quickbooks Online records.
Now, Any of you have any Idea on how to record daily summary of even monthly summary of the inventory report from a third party? I have been recording my Daily Sales summary daily.
