QuickBooks Online Sync Error | An inventory item is missing an expense account. Add it in QuickBooks. – Ramp

Overview

Ramp has received the following error message from your Accounting Provider QuickBooks Online:

An inventory item is missing an expense account. Add it in QuickBooks.

Why is this happening?

This error only occurs if inventory tracking is enabled in QBO. When you acquire inventory, the inventory is an asset. The cost of acquiring the asset is coded to the operating account. When inventory is lost, damaged, or stolen, the cost of the item is posted to an expense account. Why an expense account? You no longer have the item or the item has no value, so it lowers the value of the company's inventory and is counted as an expense.

This sync error means Ramp either:

Cannot locate the expense account for an inventory item in QBO, or
Cannot locate the inventory item (and therefore cannot locate the expense account).

How do I resolve this error?

Ask for a screenshot of the inventory item screen in QBO. Ensure there is a valid and active expense account listed in the Expense account field.
Make sure the inventory item is linked to an expense account in QBO.
On the screenshot of the inventory item screen you asked for in step 1, ensure either:

The item type is an inventory item (not a service or other non-inventory type) OR
Code the purchase directly to the expense account.