Lesson 1: Convert from QuickBooks Desktop to QuickBooks Online
Module 10: Complex Conversions
The transaction journal on this starting value adjustment shows that it is immediately reversed from
the general ledger so as not to duplicate the inventory asset value already posted to the general
ledger by the individual historical sales transactions.
Sales transactions with inventory parts dated
the FIFO start date record the sale and the
cost of the products sold via the FIFO method.
QuickBooks Online will search for any errors with inventory. If errors are found, e.g., if the Cost of
Goods Sold account on an inventory item from QuickBooks Desktop is not posting to the proper
Cost of Goods Sold account type, the import will fail. An email with instructions on how to fix the
items that caused the problem will be sent to the user account.
Turning Off Inventory Tracking
If you elect
to bring over inventory to QuickBooks Online, sales transactions with inventory parts
include two extra line items. These two line items use the two new items that were created at
conversion — Item_Inventory asset (deleted) and Item_Cost of goods sold (deleted). The line with
Item_Inventory asset (deleted) records the removal of inventory value from the inventory asset
account, since you sold the items. The line with Item_Cost of goods sold (deleted) records the cost
of the sale.