Increasing Cost Basis
Sometimes the cost basis of inventory needs to be increased. The most common reasons are for businesses who hold what is considered an asset for resale, autos, houses, etc.
Let’s use a house as an example. The cost to buy the house is its cost basis. But then you need to do some repairs and pay taxes, those are also costs that need to be tracked and added to the base cost of the house being held for sale.
Set up a clearing expense account and pay the bills using that expense account. Then write down the total in the account and bring up inventory adjust.
Set the adjustment account to the clearing account you used to pay the bills, mark the adjustment as a value adjustment. Scroll down and find the house. Leave the quantity the same and change the total. Add the amount you wrote down to the total value that QB shows and enter that new total in the new total column.
QB will take the amount out of the clearing expense account and add it to the cost basis of the house. When you are done the clearing expense account should have a zero balance, check it.
