We have two separate companies - one is a sales and distribution company, the other, a manufacturing company.   The only customer of the manufacturing company is the sales & distribution company.  We are looking to merge the manufacturing company into the sales company.  I manually entered in the vendors and inventory items from the manufacturing co. into the sales company.  I did this mainly to ensure clean data was being brought over.

I entered the inventory items through item maintenance, but did not add any 'quantities on hand' yet.  The items were entered as a first step in this process.  Since we are merging the companies, what is the best way to bring over inventory counts into the Sales & Distribution co?  And how will this be reflected on the balance sheet and/or the income statement?  

Thanks for any insight.