Balance Sheet Inventory Asset


C

Chico

I am using QB Premier 2006 5 user. On a monthly basis I use Adjust
Quantity/Value On Hand. I have been trying to figure out why the Inventory
Valuation Summary Value doesn't match the Inventory Asset Value on the
Balance Sheet. The Balance Sheet Value is greater. I thought it might be
something I set up incorrectly but I just made the entry in the sample
wholesale file and got the same results.
Here is what happens.
Make note of the value of the inventory in the balance sheet and the
inventory valuation summary, it is the same.
Go into Adjust Quantities.... select Inventory Asset account and reduce the
qty of a product, it shows a negative amount such as -1,000
Save and close.
Run a Inventory Valuation Summary and it will have a decrease of 1,000
Go to reports and run a Standard Balance Sheet and it does not show the
decrease in value.

I manufacture product and over the last few years from making this
adjustment this number has grown out of balance considerably. I use wasp
bar code for labels and it does not recognize inventory assembly so I don't
use that function. Regardless, shouldn't this value stay in balance?

I would appreciate any help with this matter,

Tim
 
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G

Golden California Girls

Chico said:
I am using QB Premier 2006 5 user. On a monthly basis I use Adjust
Quantity/Value On Hand. I have been trying to figure out why the Inventory
Valuation Summary Value doesn't match the Inventory Asset Value on the
Balance Sheet. The Balance Sheet Value is greater. I thought it might be
something I set up incorrectly but I just made the entry in the sample
wholesale file and got the same results.
Here is what happens.
Make note of the value of the inventory in the balance sheet and the
inventory valuation summary, it is the same.
Go into Adjust Quantities.... select Inventory Asset account and reduce the
qty of a product, it shows a negative amount such as -1,000
Save and close.
Run a Inventory Valuation Summary and it will have a decrease of 1,000
Go to reports and run a Standard Balance Sheet and it does not show the
decrease in value.

I manufacture product and over the last few years from making this
adjustment this number has grown out of balance considerably. I use wasp
bar code for labels and it does not recognize inventory assembly so I don't
use that function. Regardless, shouldn't this value stay in balance?

I would appreciate any help with this matter,

Tim
Cash basis or accrual basis? Everything to do with Inventory in
SlowBooks is strange on cash basis. Oh, you said you adjusted, what you
didn't say is to what account did you post the adjustment?
 
C

Chico

Golden California Girls said:
Cash basis or accrual basis? Everything to do with Inventory in SlowBooks
is strange on cash basis. Oh, you said you adjusted, what you didn't say
is to what account did you post the adjustment?
Acrual Basis. I posted to Inventory Asset Account.
 
G

Golden California Girls

Chico said:
Acrual Basis. I posted to Inventory Asset Account.
Well there is the reason it didn't change! You posted it back to
itself! Post it to a COGS account and you'll see that balance sheet
change, and you'll see the P&L change for that shrinkage too.
 
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A

Allan Martin

Acrual Basis. I posted to Inventory Asset Account.

If you posted to the Inventroy Asset Acccount then the program should have
poped up a window and warned you that you are probably making a mistake. If
you ignored this warning then there can not be any effect on the balance
sheet since the net adjustment to inventory will always ended up being
zero.
 

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