Inventory Accounts not showing up in General Journal list

Question

I have a customer who originally set up his business with inventory items. After 1 year in business, it was decided that tracking inventory would be much too difficult. He buys raw materials and uses portions of those materials to create a separate product(s) to sell. Since there are very few raw materials and only a few subsequent products that are created, he began to simply purchase raw materials as an expense and sell the product increasing his revenue. 
 
 Here's the problem... 
 We made all the inventory adjustments to bring his inventory to zero and posted instead to the expense/revenue accounts. This was accomplished through adjusting his sales and purchase invoices. 
 There are balances though in these former inventory accounts on the trial balance and I'd like to close them to zero, but (after reading other articles) I discovered these accounts are linked and will not show up in the general journal in order for me to accomplish what I need do. 
 When I try to remove the inventory items, Sage tells me they are tracked and i have to clear inventory tracking data in order to proceed. I made the mistake of following that procedure and was then unable to view any sales/purchase invoices as a result...support just fixed that former problem today. 
 There has to be a way to simply change from a company who tracks inventory to one that doesn't. 
 What are my options? Anybody?

Richard S. Ridings · Accepted Answer

You would normally use the Inventory Adjustments module to Adjust the inventory quantities and dollars to zero because,... that's what it is for. By going back to the original purchase invoices, you have altered the original transactions but if your file is not set up on FIFO, then you most likely have average cost issues that is leaving dollars in the items. 
 Have you checked the Inventory Summary report to see if any items still have quantity and dollars? If there are still items showing up, you can tell the account total by using the option to run Inventory By Asset and only picking the one asset account. Generally, but not always, the dollars match. 
 Therefore by using the Inventory Adjustment module you can remove the quantities and the total dollars to an expense account for each item. 
 Make sure you run the Inventory Summary report without any Filtering and for the correct date to be sure you have all the correct information before you adjust. 
 If you ultimately then end up with dollars in your Linked Asset accounts but nothing showing on the Inventory Summary report or on each applicable item's ledger for quantity and value on the Quantities tab, you can use your Accountant's Edition of the program to make changes to the balances of the Linked Asset accounts using the General Journal.

Sage 50 Canada

Inventory Accounts not showing up in General Journal list

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