How to adjust inventory quantity difference?

Hello, @nancyl.

I understand the importance of tracking and having an accurate status of your inventory quantity. 

To adjust your inventory quantity, here’s how.

First, you have to set up your inventory adjustment account.

1. Go to Company and then Chart of Accounts.
2. Click on Account and from the drop-down list, click on New.
3. From Other Account Types ▼ drop-down list, click on Cost of Goods Sold.
4. Click Continue.
5. Give this account a name “Inventory Adjustments”
6. Click on Save and Close.

Once done, adjust your inventory.

1. Go to Vendors then select Inventory Activities.
2. Click Adjust Quantity/Value on Hand.
3. Select the type of inventory adjustment. 
4. Then enter the date of the adjustment into the Adjustment Date.
5. Then select the account that the adjustment will affect the Adjustment Account.
6. Enter an adjustment reference number into the Reference No field.
7. Click into the Item column in the first available row.
8. Then select the first item to adjust from the drop-down list.
9. To make a Quantity adjustment, enter the New Quantity or the Quantity Difference into the respective column.
10. If you enter a loss of items in the Quantity Difference column, be sure to enter the difference as a negative number.
11. To make a Total Value adjustment, enter the new total value into the “New Value” column.
12. Then, click Save & Close. 

You can check this article to have more information about inventory assets and COGS tracking. Understand inventory assets and cost of goods sold tracking.

Feel free to comment below if you need further assistance. Have a good day!