My client took over a QBO file 3 years ago when he purchased his business. The inventory tracking was turned on and the products were entered by the previous business owner so whenever my client entered a sale it would decrease the inventory. Unfortunately, for 3 years, he hasn't been doing anything to increase the inventory so the numbers are completely wrong. He merely posted the supplier bill totals to Cost of Goods Sold. I tried going back and entering bills from the previous years but that doesn't seem to be working. I also discovered that my client had been entering the quantities incorrectly on the sales orders. For example, product ABCD is one case of 12 widgets (quantity of 1) but my client would use part ABCD and enter quantity 12 for 12 widgets. So even if I entered all 400 plus supplier bills, I would have to go back and correct thousands of sales orders. I've also tried to do quantity adjustments but that creates inventory shrinkage amounts that aren't accurate. Is there a way to completely remove the Inventory Shrinkage number so it doesn't show up on any financial statements? The accountant has just been using journal entries to correct the dollar amounts. However, my client wants to now start actually tracking the inventory so the numbers need to be accurate. Are there any inventory experts out there who could make this easier on me by way of journal entries or something in Accountant Tools I don't know about? I've already spent several hours trying to figure out a way to correct this disaster. Perhaps, it would make more sense to start a new QBO file altogether...
