how to revalue inventory and set to '0' value when inventory item value is based on purchase price

AI generated answer (using internal Slack threads):

Based on the conversations, there are a few ways to revalue inventory and set it to '0' value when the inventory item value is based on purchase price: 1. Inventory Adjustment: You can adjust out the inventory at the current price, wait a day for the costing engine to update, and then adjust back in at the correct value. This method requires a full calendar day at 0 on hand for it to work. You'll need to use an appropriate expense account or a holding account for both inventory adjustments. 2. Inventory Worksheet: You can use an inventory worksheet to adjust the value of the inventory. However, it's important to note that the GL impact (actual adjustment) seems to be based on the current inventory value, which might be lower if some of the items have sold since then. 3. Journal Entry: If you can't backdate worksheet adjustments, you can do a journal entry to correct the accounts. This method is used when the average cost of many items have been thrown out, and any transactions made before the fix has the old (incorrect) average item cost in the transactions GL impact. 4. Receipt and Bill Adjustment: You can receive the items to $0 on the item receipt, bill them to $0 on the vendor bill and add the correct expense account on the vendor bill. This way, you have the items in stock but with the cost already accounted for. Remember, these methods might change the financials in the period they are applied, so it's important to consider the impact on your accounting records. ****** Disclaimer: This response was generated by an artificial intelligence assistant based on previous conversations from multiple Slack channels, and may contain inaccuracies or mistakes. ******