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The Inventory Offset balance is too high or too low

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The Inventory Offset balance is too high or too low

The Inventory Offset account is a liability account created by QuickBooks when you use the Enhanced Inventory Receiving (EIR) feature (available in QuickBooks Enterprise only).

This account functions as a clearing account between Item Receipts and Bills. Once a Bill and Item Receipt are both entered, the amounts for those transactions are cleared from the Offset account.

Sometimes this account shows a balance appears to be too high or too low and needs to be reviewed.

How to fix it

Create a report to help reconcile the Inventory Offset account:

  1. Go to the Reports menu.
  2. Select Custom Reports, then select Transaction Detail.
  3. Select the Filter tab.
  4. Add a filter for Account and set it to Inventory Offset.
  5. Select the Display tab.
  6. Select the Date Range as All.
  7. Under columns, checkmark Item.
  8. From the Total By drop down, select Vendor.
  9. Select the Sort By as Item, then click OK.
  10. This report shows All Inventory Offset transactions and you can use it as a reconciliation report.   Look for a Vendor that does not end in a zero balance.
  11. When you find one that does not have a zero balance, review the transactions for any items that display an odd number of times.
  12. This indicates that there is either no Item Receipt or no Bill for that item.

NOTE: Some users may be surprised at the existence of this account. Even if users enter items on a bill directly, it will still post transactions to the Inventory Offset account. You MUST do the extra step of an Item Receipt, then enter the bill against it to relieve the Inventory Offset account.

KB ID# SLN66102
5/24/2017 7:56:10 PM
QYPPRDQBKSWS03 9138 Pro 2017 12f689