@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.