I have a different issue that I'm not sure how to solve. My company switched accounting software three times from Sage 50 / QB/Stone Profits. After migrating to QB in the middle of the year, Intuit team converted the Sage data to QB format, but they moved my inventory as a non-inventory item, which caused a problem. I had to manually convert non-inventory items to inventory items, and before I finished, we switched again to the industry-specific software. They transferred everything from QB and asked for inventory files in Excel format. My balance sheet now shows a negative balance in the 1000-inventory clearing account, despite the fact that the 1001-inventory account is correct and matches the inventory valuation report. How do I remove the incorrect negative value from my inventory clearing account, which is reducing my total current asset? Could you please advise me on how to resolve this issue? Thank you 🙏
This is going to require a massive inventory adjustment and cleanup OR could be as a simple as a journal entry, it’s impossible to tell from this vantage point.
CPA Hector Garcia I was thinking about making a journal entry to solve this problem, but I'm not sure which gl account to use to offset this negative balance. What would you recommend, thanks for the help 🙏
@@ana81267 I cant make an accounting recommendation in this context. If you want to setup a formal diagnosis, contact my office so a senior accountant can look at your account and make a formal recommendation
Good. Amount can be adjusted by increasing any inventory amount?
The Inventory Items with zero QOH that has an Asset Value zero --- what account is the value adjustment made to?
COGS
I have a different issue that I'm not sure how to solve. My company switched accounting software three times from Sage 50 / QB/Stone Profits. After migrating to QB in the middle of the year, Intuit team converted the Sage data to QB format, but they moved my inventory as a non-inventory item, which caused a problem. I had to manually convert non-inventory items to inventory items, and before I finished, we switched again to the industry-specific software. They transferred everything from QB and asked for inventory files in Excel format. My balance sheet now shows a negative balance in the 1000-inventory clearing account, despite the fact that the 1001-inventory account is correct and matches the inventory valuation report. How do I remove the incorrect negative value from my inventory clearing account, which is reducing my total current asset? Could you please advise me on how to resolve this issue? Thank you 🙏
This is going to require a massive inventory adjustment and cleanup
OR could be as a simple as a journal entry, it’s impossible to tell from this vantage point.
CPA Hector Garcia
I was thinking about making a journal entry to solve this problem, but I'm not sure which gl account to use to offset this negative balance. What would you recommend, thanks for the help 🙏
@@ana81267 I cant make an accounting recommendation in this context. If you want to setup a formal diagnosis, contact my office so a senior accountant can look at your account and make a formal recommendation