Hello there, @ RKN.

You can create a bill then add the expenses. Then check it if it’s the same screenshot that shows negative.

Here’s how to create a bill:

1. From Home Page, choose Enter Bills. 
2. In the Vendor drop-down, select the vendor you'd like to create a purchase order for.
3. Select the date.
4. Fill in the other necessary fields.
5. Hit the Save and Close button.

On the other hand, you can create a check transaction in QuickBooks Desktop. This is used when you want to recognize an expense and record payment all at once. Here’s how to create a check:

1. Click Banking at the top. 
2. Select Write Checks. 
3. Enter the necessary information. 
4. Click Save & Close. 

After recording what you owe in QuickBooks Desktop, you can use Pay Bills to settle your payables for different vendors. Please check this article to see the steps: Pay bills in QuickBooks Desktop.

Please know that you're always welcome to post if you have any other concerns. Wishing you and your business continued success.

Thank you MaryAnne.  I have gone through then entire process of creating the bill for the import expense, applied these expenses to the  bill that contains the product using the "Calculate Landed Cost" button on the bill for the product, and paid both bills.  All seemed to function as expected, except that now we have this balance in the "Inventory Offset Account" and I cannot trace where this comes from:

The yellow cells are the expenses that were entered under the bill for freight and are resulting in a negative balance in this account.  How can I trace where these expenses are coming from as I don't think that neither the freight bill or the product bill point to this account.

Thank you for getting back here, @RKN.

I appreciate you for performing the steps provided by my colleague. You'll want to run the verify rebuild tool, this helps to identify the most commonly known data issues in your company file and as well as resolve these issues. Here's how:

Verify data

1. Click Window then Close All.
2. Select the File tab.
3. Choose Utilities.
4. Tap Verify Data.

Rebuild data

1. Choose File, Utilities then Rebuild Data.
2. Press OK to back up your company file.
3. The Rebuild Data utility starts as soon as the backup is finished.
4. Click OK when you get the message "Rebuild has completed".

Otherwise, you may reach out to our technical support team so they can further investigate this and check your setup.

Here are the steps:

1. Navigate to the Help menu and choose QuickBooks Desktop Help.
2. In the Have a Question section, click the Contact Us link at the bottom.
3. Enter the keyword of your concern in the What can we help you with? box.
4. Select Start a chat. 

For guidance, I'll share some articles to help you:

• How to set up landed cost in QuickBooks Enterprise Services
• How to calculate landed cost in QuickBooks Enterprise Services

Should you need anything else, don't hesitate to comment below. I'm always around to help. Stay safe and take care always.

Thank you for suggesting the data verify option.  I have done this and the issue remains.  Does is sound reasonable that we create a journal entry to correct the issue for now and see if it persists on our next import?

Hi @RKN,

Thank you for your prompt reply, as well as sharing an update on your current status.

The Inventory Offset account is a liability account. It's generated by QuickBooks Desktop (QBDT) when you enable the Enhanced Inventory Receiving feature.

You can run a custom report to reconcile it, which isolates the negative amount you stated earlier. 

Here's how:

1. Go to the Reports menu.
2. Highlight Customer Reports.
3. Select Transaction Detail.
4. Move to the Filters tab.
5. Choose Account and set it to Inventory Offset.
   • From the Display tab, set Date Range to All.
   • Under columns, tick the box on Item.
   • Pick Vendor from the Total By drop-down menu.
   • Click Item from the Sort By drop-down menu.
6. Press OK.

Note: It's necessary to create an Item Receipt first, then enter a bill against it to relieve the Inventory Offset account. 

If you have other questions about the Landed cost feature, see this article: Landed cost FAQs. 

I'll be around if you need further help. Place a question below, and I'll get back to you.

We had the exact same situation and this was corrected by doing the 'Item Receipt' process for freight invoice.  After the whole process you will have:

- One item receipt and one bill for the goods supplier

- One item receipt and one bill for the freight supplier.

Once you do this, the balance of your Landing Cost GL account will be zero.

Hope it helps