To complete this exercise, you must be in the Sample company. From your QBOA account, click on the Gear icon on the top right corner of the screen, then select Sample company.

Note that you will be logged out of your current account. If you are sure, click "Continue" to confirm. 

First we'll need to recreate Craig's error in the Sample company.

From the left navigation bar, hover over Sales, then select "Products & services".

Product/Service information
	Inventory Change type
Name*
SKU
|
Category
Initial quantity on hand*

As of date*
What's the as of date?

Reorder point
What's the reorder point?

Inventory asset account
Description
Sales price/rate
Income account
Sales tax 
Taxable - standard rate
We'll apply sales tax based on location only.
Edit sales tax
Purchasing information
Cost
Expense account
Preferred Vendor

In the Category field, select "Fountains".

In the Initial quantity on hand field, type "10".

In the "As of date" field, select today's date.

In the Sales price/rate field, type "300".

Because he entered an initial quantity, QBO created a balancing Opening Balance Equity entry. Let's take a look.

You may need to click "See your Chart of Accounts" if this is your first time visiting the Chart of Accounts in the Sample company.

On the Opening Balance Equity row, click "View register".

Fastandeasyqbo

QuickBooks

QuickBooks is a widely-used accounting software developed by Intuit, designed to simplify financial management for businesses of all sizes. It provides a user-friendly platform for tasks like invoicing, expense tracking, payroll processing, and generating financial reports. QuickBooks automates many financial processes, making it easier for businesses to monitor their financial health, prepare taxes, and manage cash flow. With its various versions and integrations, QuickBooks caters to the needs of freelancers, small businesses, and larger enterprises, offering a flexible and comprehensive solution for efficient accounting and financial management.

app.qbo.intuit.com

fastandeasyqbo.com

Scenario: Craig has decided to now carry cherubs as an optional add-on to his fountains. He bought 10 of them from Tim Philip Masonry for $125 each and plans to sell them for $300. Without talking to you first, Craig set up the new product in Products & Services with the initial quantity on hand of 10. 

What happened to Opening Balance Equity when he did this, and what should he have done instead?

A.3.5a Create an Inventory Product with Quantity

The Wrong Way