• Solarsys
• January 27, 2014

QuickBooks | Opening Balance – The Stock

Software: Intuit QuickBooks accounting software

Entering the stock on hand quantity and value is one of the essential tasks to do when you crossover from the existing accounting software to QuickBooks accounting software. You have to ensure the quantity and value is tally with your stocktaking as of the crossover date.

One of the method to record the stock on hand quantity and value is to record it at the point when you create the stock item in QuickBooks. However, this method will not work if you have imported your product list instead of creating it one at a time.

After you have imported the product list into QuickBooks accounting software. You may update the quantity and value on hand with the “Adjust Quantity/Value On Hand” function. From the Company navigator, select the “Adjust Quantity/Value On Hand” from the Inventory Activity drop down list to start the stock adjustment.

In the Adjust Quantity/Value On Hand window, the Adjustment Type should be the Quantity and Total Value if you need to update both quantity and value, the Adjustment Date should be the crossover date, and use the Opening Balance Equity account for the Adjustment Account field. Next, click the “Find & Select Item” button to select the items to be adjusted. Since you are going to update all the product items, you may click the “Select All” button to transfer all the items into the adjustment list. Then, enter the quantity at the New Quantity column and the total value of the highlighted item in the New Value column. Lastly, click the “Save & Close” button to complete the updating of the stock on hand quantity and value.

The double entry for this transaction are debiting the Inventory Assets account and crediting the Opening Balance Equity account.

The Opening Balance Equity account is a QuickBooks system account, which used to capture all the opening balances when you crossover to QuickBooks accounting software.

If you have lots of items to be updated, you may do it in multiple adjustment instead of all lumps into one single adjustment.

You should avoid passing entry into the Inventory Assets account via a General Journal transaction as this may cause the imbalance between the Stock Valuation report and the Inventory Assets account in the Balance Sheet report.

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