Inventory adjustment

I'm here to make sure you can handle your inventory adjustments in QuickBooks Desktop (QBDT), @monahakb.

Since you already know what items to adjust, you can proceed with setting up your inventory adjustment account to track them. Before doing so, I recommend consulting an accountant for the best account to use. If you don't have one, you can use our Find an Accountant tool to look for one.

Here's how to create an inventory adjustment account:

1. Click the Lists menu at the top, and then choose Chart of Accounts.
2. Select the Account ▼ dropdown, and then New.
3. From the Other Account Types ▼ dropdown, choose Cost of Goods Sold.
   
4. Name this account “Inventory Adjustments."
5. Fill out other info as needed, and then click Save and Close.
   

Once done, you can now adjust your product’s quantity, value, or both. Let me guide you how:

1. Click Inventory at the top, and then select Adjust Quantity/Value on Hand.
2. Choose the Adjustment Type ▼ drop-down, and then select Quantity, Total Value, or Quantity and Total Value. 
3. Select the adjustment type option and then choose your adjustment account.
4. Enter the Adjustment Date.
5. Choose the Adjust Account ▼ drop-down, then select the adjustment account you set up.
6. Add Reference No. You can also assign a customer, job, or class.
7. Select Find & Select Items, and then choose the items you want to adjust. (If you have a lot, search for any product in the Find field.)
8. Click Add Selected items, and then add a new quantity or new value (or both) for each item.
9. Select Save and Close.

For more details, please check out this article: Adjust your inventory in QBDT.

After that, you can run the Inventory Stock Status by Item report to check your product's quantity or the Inventory Valuation Summary report to know the product's value. This helps ensure your inventory is correct. To do this, go to the Reports menu, and then select the said reports from the  Inventory section.

In case you want to adjust the inventory for finished products, you can refer to this article for the detailed instructions: Adjust inventory for finished goods.

I'm always around to help if you have additional queries about managing your inventories in QBDT. Just click the Reply button so I can assist you further. Have a good one.

Hi. What if the inventory adjustment is positive which means there are additional inventories. It was not purchased. It came in a form of donation or from household. How to treat this kind of adjustment? When I made “Additional Inventory” account in other current assets and used this account in inventory adjustments, it appeared negative in the Balance Sheet.