Balance Sheet Inventory Asset

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

Reply to
Chico
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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?

Reply to
Golden California Girls

Acrual Basis. I posted to Inventory Asset Account.

Reply to
Chico

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.

Reply to
Golden California Girls

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.

Reply to
Allan Martin

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