starting over - inventory

[stylo]

Our books are a mess, negative inventory, etc., etc. I need to start over, but how should we handle all of our existing inventory so that it has the proper cost attached to it? I was reading this thread, but the last questions wasn't answered about where the value goes:

http://www.quickbooksusers.com/.foru...over+inventory

If we use a 3rd party prog and not track in QBs then we just have an account for the value of inventory, correct, which the 3rd party prog will adjust monthly? So we just enter a starting value in there?

[jfreitas]

It depends on the how the 3rd Party app handles the setup. ACCTivate! for example, takes your existing QB file and imports the information. In your case (for ACCTivate!) I would adjust to 0 and inactivate the duplicate set of items (those won't be imported). After importing the items, the inventory side of QB will be turned off, all inventory items are inactivated, and instead you will have a few summary type items depending on your setup. If your inventory is really messed up, I'd take a physical count and make the adjustments in ACCTivate, which will correct your inventory asset account.

If you start with a new file (without inventory) and a value in the inventory asset account, you'll end up journaling that out when the inventory gets put in (which is ok too).

If you start over, what will you do with all the other transactions (A/P, A/R)?

So I guess what I'm trying to say, is pick your 3rd party app first, see how it handles the conversion, then decide on the best approach.

[stylo]

>what will you do with all the other transactions (A/P, A/R)?

I assume that is all explained in starting a new ompany somewhere. Haven't checked yet.

I also assume a 3rd party app will work as you say, and if starting a new company the value must be put into QBs as opening balance of inventory value.

Anyone done this?

[jfreitas]

I wanted you to think about the existing A/R, A/P and other transactions -- because you will lose them if you start a new company file. There are ways to import them, but it will cost you more money.

If you want to start a new file just because the inventory is a mess, you need to think about what you will lose in the process.
Inventory can be cleaned up by taking a physical count and making adjustments.

Have you decided on a 3rd party app yet?

[stylo]

Looking at Almyta or Fishbowl. Big price difference, not sure yet about much functionality difference though FB looks better organized.

I suppose we could just adjust all the inventory. Just think all the ave costs are wrong, totals wrong. If going to a 3rd party app, we could value it, make an adjustment (adjust to correct totals, then zero them all out and adjust to an inventory asset account? Or simply turn off tracking after initial adjustment?) and turn off tracking and go from there.