@s1b
Correct. QB can only run differentiate inventory on cash vs. accrual reports if you receive all items using a Bill, Expense, or Check transaction. When the items were originally set up, you must have entered an 'Initial quantity on hand' in the item set-up. When you did that, it bypassed QB's ability to differentiate inventory value on cash vs. accrual reports. On cash basis, you should show $0 inventory if you received all items using a Bill/Expense/Check. Now, you will show your opening inventory value and an offset to Opening Balance Equity for any date you select on a cash basis balance sheet. Fixing this is going to be a challenge if you have a lot of items that make up your opening inventory balance. However, since you carry inventory, I assume you're on accrual basis. If you ever need to present a cash basis balance sheet, you can make a journal entry to remove the inaccuracy. Then, make sure to delete it.
