When you adjust a quantity, QuickBooks assumes that the average cost of the item remains the same and adjusts the value accordingly. For example, if the average cost is $10 and you reduce the quantity by 2, QuickBooks reduces the total value of the items on hand by $20.
About adjusting quantity of inventory assemblies
- Decreasing the quantity of an inventory assembly item may cause finalized inventory assembly builds to change to pending status. Before and after making an inventory adjustment, run the pending builds report (Reports > Inventory > Pending Builds) so you can see if any builds were affected.
- Adjusting the quantity of an inventory assembly item doesn't affect the quantity of its components (neither inventory parts nor other inventory assembly items) in the Bill of Materials. If you want to disassemble an inventory assembly item and return its components to inventory, you need to decrease the inventory assembly item quantity and increase each component quantity accordingly. For more about inventory assembly items, including how to disassemble, see Create, build, and work with inventory assembly items.
To do this task:
- At the top, select Inventory and choose Adjust Quantity/Value on Hand.
OR: Vendors > Inventory Activities > Adjust Quantity/Value on Hand.
- Select the Adjustment Type drop-down arrow and choose Quantity.
- Enter the date of the adjustment.
- Select the Adjustment Account drop-down arrow and then choose the account where you want to track inventory adjustments.Which account should I use?
Consider creating a new account for tracking inventory adjustments. You can use one account for all adjustments, or use an expense account for losses and shortages and an income account for gains. If you are unsure what account to use, it is best to consult your accountant. If you're making adjustments to more than one item and need to assign the adjustments to different accounts, you need to create multiple adjustments (one for each account).
- (Optional) Enter additional details as needed, such as reference number, Customer/Job, or Class.
- Under the Item column, add the items. You can also add multiple items:Save time by adding multiple items
- Select Find & Select Items.
- Choose the items you want to add to the transaction.
- Find and select items
- In the Find field, enter a search term.
- (Optional) Select the in drop-down arrow and choose a specific field.
- Select the Search button.
- In the checkmark column, uncheck the items you don't want to add.
Note: To clear your search results, select the Reset button.
- Add all itemsTo add all items to the transaction, choose the Select All button at the bottom.
- Select items manuallyIn the checkmark column, select the individual items from the list.
- Find and select items
- At the bottom, select the Add Selected Items button.
- Enter the quantity adjustment under New Quantity or Qty Difference column.In the Qty Difference column, enter the difference between the quantity currently in QuickBooks and the actual quantity.
For example, if you need to reduce the quantity by five, enter -5 as the quantity difference.
- (Optional) Enter a memo in the Memo field.
- Save the adjustment.