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C
CP1873
January 18, 2023
Question

Inventory shrinkage

  • January 18, 2023
  • 2 replies
  • 0 views

I am using QB online for our non-profit with a gift shop.  There is a problem with the gift shop inventory assets and inventory shrinkage.  When I made the inventory adjustments it did not impact the asset accounts or the shrinkage accounts with any value.  The inventory items show a value for the sales price and cost.  The transaction report shows all the adjustments and it did change the quantity but there is no value associated with it.  If we had 10 items on the list with $1 cost and I adjusted to 5 items it should create a -$5 on the asset and increase the cost of sales by $5 but it didn't. I adjusted   The inventory shrinkage account goes to COS.  We have a COS in our chart of accounts but it doesn't show up on any report - only inventory expense.  Is this the problem?  HELP! 

2 replies

AlcaeusF
AlcaeusF
Level 14
January 18, 2023

Hello, CP1873.

 

I'm here to provide information about adjusting inventory in QuickBooks Online (QBO).

 

In QBO, when you save the inventory adjustment, the system automatically records appropriate adjustments to your stock Asset and Cost of Goods Sold (under stock Shrinkage) accounts.

 

Since the adjustment didn't impact your asset and/or the shrinkage accounts, let's sign in to your QBO using a private browser (incognito). There are times that the browser is already full of frequently accessed page resources (cache and cookies), causing some unusual responses.

 

Here's how:

 

  • Press Ctrl + Shift + N (Google Chrome).
  • Ctrl + Shift + P (Firefox).
  • Control + Option + P (Safari).

 

If everything looks good, go back to your default browser and perform a clear cache to refresh the system. However, if the issue persists, try using other supported browsers.

 

To learn more about managing inventory adjustments in QBO, consider checking out this article: Adjust inventory quantity on hand in QuickBooks Online.

 

I'm also adding this article that tackles running inventory reports for more information: Use reports to see your sales and inventory status.

 

For more tips and other resources you can use in the future, I recommend visiting our website: Self-help articles.

 

Please let me know if you have follow-up questions about inventory or anything else QBO in the comment section below. I'll be here to help. Take care always.

C
CP1873Author
January 18, 2023

Thanks for the info, but that is not the problem.  I use multiple computers and have had others look at it as well.  The inventory adjustment is not recording any value although there is a value in cost.  I think it has something to do with the shrinkage account/cos/expense, but not really sure what is wrong it.

Rainflurry
Rainflurry
Level 11
January 18, 2023

@CP1873 

 

If you run an Inventory Valuation Detail report, does the item(s) in question have receiving history with a quantity and rate?  If items were received at $0 cost (shown as the rate on the inventory valuation report), a quantity adjustment may do exactly what you're describing - it would reduce the quantity but make no entry to lower the inventory value or increase COGS.

J
john675645
December 16, 2025

In QuickBooks Online, inventory adjustments affect Inventory Asset and COGS only if items are set as Inventory type with the correct accounts linked. Check each item’s Income/Expense/COGS account in the item setup. Often, QBO posts adjustments to an Inventory Adjustment account, which can show as “Inventory Expense” on reports. Many non-profits, including gift shops we work with at Ledger Labs, fix shrinkage reporting by ensuring accounts are properly mapped.

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