How to fix common QuickBooks inventory asset account problems
Let’s quickly go over some of the common QuickBooks inventory asset account problems you might encounter and see how to fix them.
1. Incorrect inventory asset account
Double-check that the Income account used for the item has the account type Other Current Asset, as well as the detail type Inventory.
2. Negative inventory
Negative inventory can occur when you sell more products than you actually have available in your inventory.
You can usually fix negative inventory in QuickBooks by converting open purchase orders to bills. This tells QuickBooks that the items are on the way. It’s also a good idea to double-check your inventory, in this case, to see if you need to reorder anything.
3. Incorrect cost of goods sold
You might get an incorrect value on your COGS account for a few different reasons. Double-check that you’ve entered the correct cost for your goods. If that doesn’t work, make sure you’ve linked the correct COGS account to your inventory item.
If you receive items in bulk, make sure they’re received and sold in the same quantity (for example, if you receive 1 kilogram of bananas, but you sell them as 1 pound).
4. Inaccurate inventory reports
You might find inaccuracies in your inventory reports if you have transactions in your inventory asset account that aren’t linked to any of your inventory items. It can also occur if you have inactive inventory items but still have a non-zero value.
You can run an inventory valuation report to help find any items that might be causing issues.
5. Difficulty tracking stock levels
QuickBooks Online has some limitations when it comes to tracking stock levels in inventory. QuickBooks Online on its own does not come with features such as lot tracking and advanced inventory management. You can read more about the limitations of tracking stock in this article: QuickBooks Online serial number tracking.
To benefit from all the advanced inventory management features, you can integrate QuickBooks Online with an inventory management system.