Inventory Items can have between 1 and 3 accounts associated with them depending on how they are set up:

• An Income Account for Tracking Sales if you sell the item;
• An Asset Account for Item Inventory, if you inventory the item;
• A Cost of Sales Account if you Inventory and Sell an Item; and
• An Expense Account if you Buy an Item but do not Inventory it.

If an item had an incorrect account associated with it, the journal entries will be incorrect when the item is bought or sold.

If you have the wrong account(s) associated with an item, the journal entries created for purchases and sales will be incorrect. Posting will be made to the wrong accounts.

To correct the issue:

1. Create a Backup of the Company File
2. Enter the correct account(s) in the Item Information window, under the Profile tab
3. If you know what Invoices and Bills need to be corrected, skip to Step 7
4. For Sales, run a Sales Item Details report for the appropriate period, customized for the item(s) in question
5. For Purchases, run a Purchase Item Detail report for the appropriate period, customized for the item(s) in question
6. For each Invoice and Bill shown in the report, click on the ID number to drill down into the Bill or Invoice
7. Looking at the Bill or Invoice, place a period in the Comments box
   • If the Comments box is unavailable for changes:
     • Select the Security tab in the Preferences of the Setup drop-down menu from the top of the screen
     • Uncheck the Transactions can't be changed... option
8. Click the OK button

The above process will cause the invoice to be re-recorded with the correct account(s). Transaction Deletions or Reversals are NOT necessary.

Note:

1. This procedure is not available in the Canadian AccountEdge if the Quebec Option was selected during AccountEdge installation.