Let me assist you with your inventory, @poochnaturallivi.
When adjusting the quantity on hand of an inventory item, QuickBooks Online (QBO) automatically records the adjustments to your Asset and Cost of Goods Sold.
You can select the Cost of Goods Sold (COGS) account from the Inventory adjustment section. This way, it will prevent the adjustment from being tracked under the shrinkage account.
Here's how:
- Go to + New icon.
- Under Other, choose on Inventory Qty Adjustment.
- Enter the Adjustment Date.
- In the Inventory adjustment account drop-down, select the COGS account.
- Select the products in the Product field drop-down.
- For each item, enter either a new quantity or a change in quantity.
- Select Save and close.
To give you more insights about tracking inventories and the default accounts in QuickBooks Online, please check out these links:
I'll be around to help you if there's anything else you need. You can always find me here. Have a good one!