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Level 1

Problem with Inventory shrinkage and it is effecting my Profit and Loss Report. How can I remove it?alos my bank balance in quickbooks is off bc of that Thank you

I have started a new company and I'm having issues.
4 Comments
QuickBooks Team

Problem with Inventory shrinkage and it is effecting my Profit and Loss Report. How can I remove it?alos my bank balance in quickbooks is off bc of that Thank you

Hi there, prolatusa.

 

Thank you for posting here in QuickBooks Community. I'll provide information on how the inventory shrinkage affects your inventory and how it works in QuickBooks Online.

 

Inventory shrinkage affects your records because you've made an inventory adjustment. That said, the Inventory Shrinkage account is one of QuickBooks' pre-created accounts. This is automatically created once you adjust the quantity on hand of your inventory item. Also, this is the account where all the changes or adjustments are recorded.

 

Removing the Inventory shrinkage is currently unavailable in QuickBooks Online. However, you can remove or delete any records of adjustments.

 

Here's how:

 

  1. Hover to the Search icon.
  2. Click the Advanced search.
  3. From the Inventory adjustment account drop-down, select the appropriate account.
  4. From the All Transactions drop-down, select Inventory Quantity Adjustment. You can filter the adjustment to see the desired item.
  5. Select Search.
  6. From the search results, select the adjustment you need to edit or delete.
  7. Click Delete, then select Yes to confirm.

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On the other hand, I'd also suggest checking your bank account to verify if there are transactions that affect the shrinkage. If so, you can delete them from your account because shrinkage must not be used for any deposit or expenses transaction. To do this, you'll need to go to the Register page. Please open this article to see the steps: Find, review, and edit transactions in account registers.

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Please refer to this article to see information on how to use reports to get helpful insights on the things you buy and sell and the status of your inventory: Use reports to see your sales and inventory status.

 

Please let me know if you need further clarification about this, or if there's anything else I can do for you. I'll be standing by for your response. Have a great day.

Level 1

Problem with Inventory shrinkage and it is effecting my Profit and Loss Report. How can I remove it?alos my bank balance in quickbooks is off bc of that Thank you

Thank you very much for your help.So profit and loss now is correct but inventory and quickbooks balance are still off....Can you please help to fix them? If I reconcile quickbooks balance may I fix the problem?

Also there is a specific procedure to create inventory from a PO?

Thank you in advance 

Level 1

Problem with Inventory shrinkage and it is effecting my Profit and Loss Report. How can I remove it?alos my bank balance in quickbooks is off bc of that Thank you

Thank you very much profit and loss balance is now correct, but inventory and quickbooks balance are still off, can you please help me to fix it? If I reconcile the two account may I fix the problem?Also is there a specific procedure to create inventory through a PO?

Thank you in advance for your help

QuickBooks Team

Problem with Inventory shrinkage and it is effecting my Profit and Loss Report. How can I remove it?alos my bank balance in quickbooks is off bc of that Thank you

Hi there, prolatusa.

 

Thank you for coming back here to QuickBooks Community. 

 

When you perform inventory adjustment in QuickBooks Online, this will not affect your Bank account but will only affect inventory shrinkage. That said, you can check your bank balance to verify if there are transactions that affect the shrinkage. As mentioned above, you can delete them from your account because shrinkage must not be used for any deposit or expenses transaction. This could be the reason that your QuickBooks Balance is off.

 

However, if you already performed this, I'd suggest checking any product that has either income or expense account that allocates to Inventory shrinkage. Then, you can change the account into the correct income and expense account.

 

Here's how:

 

  1. Click the Gear icon in the upper right corner. Choose the Product and Services.
  2. Manually click each item to verify the information by clicking the Edit link.
  3. Change the account into correct income and expense.

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If the issue persists, I'd recommend contacting our QuickBooks Support Team. They have the tools to pull your account to investigate the cause of the issue.

 

On the other hand, yes, there is a specific procedure to create inventory through a PO. To do this, you'll need to select add new in the Product and Services column. Please follow the steps below.

 

  1. Click the Plus icon.
  2. Choose the Purchase Order.
  3. Click the Item details drop-down to see the information section.
  4. Choose Add new in the Product and Services column. Then, Product/Service information appears.
  5. Select Inventory and fill in the nessesary field.
  6. Hit Save and close.

 

You can refer to this article for additional information about adding your inventory products in QuickBooks: Add inventory products in QuickBooks Online.

 

Don't hesitate to post again if you need further clarification about this, or if there's anything else I can do for you. I'll be standing by for your response. Have a great day.

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