A client has recently decided to start tracking inventory in QuickBooks Online. Previously, when purchasing...
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Accounting
A client has recently decided to start tracking inventory in QuickBooks Online. Previously, when purchasing goods, everything was coded directly to the Cost of Sales account. Now when goods are purchased, the item field on purchase transactions should be utilized. You've discovered they are still coding the purchases directly to the Cost of Sales account.
Which 3 effects will this have on the QuickBooks Online file?
1-The Accounts Payable account will report incorrect figures
2-The Balance Sheet will report incorrect figures
3-The Profit & Loss will report incorrect figures
4-The supplier balance will report incorrect figures
5-Inventory quantities will be incorrect, and may potentially be negative
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You can see the logs in the Dashboard.