Hi Rainflurry
Yes, QBO made JE's for lots and lots of products when it did the conversion. It's bc I set a starting date on the inventory for QBO to be this year, 1/1/2024. So QBO JE'd the differences to Opening Balance Equity and left the huge COGS amount on the P&L. Most of the products had negative balances so that's why the big number. The Actual COGS ytd from QB Desktop is only about $900k (assuming that was correct!).
I made the adjusting entry to get the COGS correct for 2024 (other years don't matter; the tax returns are done) to OB Equity. I just looked at OBE and good grief, adding what ended up to be an $8 mill adjustment increased the OBE which was already at $8 Mill so now we have $16 mill. I'll just have to explain to the CPA (my boss) that there is no other way around this. Bummer, I was hoping that my JE would offset what QBO did but instead it added to the balance. OBE is the only "throw away" account we have (speaking as an accountant here) to get numbers OUT of the system (meaning, not affecting assets/liabilities nor income/expenses). I never use it, except in cases like this. OBE amount gets moved into the main equity account by QBO in the new year, I believe.
Not the ideal, but what do we do when the client's books regarding all of this were a mess to start with. At least I can confine all the damage in one place - OBE.
Hope this helps people understand.
thanks
