Inventory Adjustment

Hello there, @Jdch17.

You can create a separate account in your Chart of Accounts to modify the quantity on hand and the total value.

Here’s how:

1. Go to the Company menu, then Chart of Accounts.
2. From the Account dropdown, choose New.
3. From the Other Account Types dropdown, select Cost of Goods Sold.
4. You can name this Account as "Inventory Adjustments," then click Save and Close.

For additional information about the adjustment process, check out the Adjust your inventory quantity or value in QuickBooks Desktop article. It also contains detailed instructions on how to create a separate account to track changes with the quantity or value.

I’d recommend consulting with your accountant for the best action to take. Your accountant can give you expert advice on recording it while ensuring your accounts stay accurate.

For future reference, read through this article to learn more about inventory assets and COGS: Understanding inventory assets and cost of goods sold tracking.

Let me know if you additional questions. I'll be around to help. Stay safe.

Thank you for you’re response. What you outlined is exactly what I did, but I got that error message so I’m not sure what’s going on and what needs to be done.

Thanks for keeping us posted, Jdch17.

The prompt you're getting is a reminder or warning of how adjustments accounts are taken into account. If you're sure that you'll use the Cost of Goods Sold account, you can click OK or the close ( X ) icon. Then, continue entering the adjustment. 

You can use the articles sent provided by my colleague for more information in adjusting your inventories. I'd also suggest reaching out to an accountant if you're unsure of what adjustment account you'll be using. 

The Community is always around if you need anything else. You take care!