One of the good (and dangerous) aspects of QuickBooks is the ability to always go back and make changes to your data. This feature is great for a new user as they don’t get overwhelmed if they make a mistake, and they don’t feel as scared to try something. Of course, most accounts don’t like this practice, especially if the user goes back to a closed period. However, I think this is a big benefit to the ease of QuickBooks and with some good use of the closing date password, can also be good for accountants.
One recent quirk of QuickBooks that I found, however, is changing an inventory asset account for an inventory or inventory assembly item. QuickBooks allows you to go and edit the item, and even warns you if this effects a previous periods, however, it doesn’t always change the asset account used in historical transactions. If you have a build assembly, where an inventory asset for a part gets credited, and the finished goods inventory asset gets debited, changing the asset account of either the part or the finished good item will not be changed.
This also happens on Inventory Transfers. These transactions will still have the previous inventory asset account listed for historical transactions, but it will use the new account going forward. This can create a mess of your books very quickly if you are trying to go back and update accounts. Unfortunately, I don’t know if this is considered a ‘bug’ or is as designed. I would suspect that it’s a bug, but it seems to go back many versions. The only workaround that I have been able to find, would be to go back to these transactions, make a small change (I change a quantity by one unit), save the change, then edit the transaction back to the original number. This causes it to update the asset account, but it is a manual process that must be done on each effected transaction.