beeman
Level 1

Inventory Adjustment

Hi Everyone,

We run a small skin care production business. We take raw materials and produce lotions, soaps, lip balms, etc.  I want to adjust the quantity of raw materials and finished goods we have. When I do that it wants me to select either a income or expense account, which in my mind it is really neither.  I selected inventory asset because I am neither buying nor losing materials just adjusting the amount. Is that alright to do or will it cause problems down the road? Thanks