We are currently in the process of switching from a different accounting software to QuickBooks. And I just want to preface this by saying I'm not an accountant, if that isn't obvious by what follows.
The issue that I'm having is that some of the inventory parts were entered with a 0 balance, when in actuality we had some on hand, and now I'm looking to correct that mistake. As far as I know you can change inventory in 3 different ways: you can receive the inventory with or without a bill, or you can make an inventory adjustment. I'm almost positive that I don't want to receive the inventory, so it looks like I'm looking at inventory adjustment.
My problem is then that I'm not sure exactly what my adjustment account should be. I'm pretty sure that I don't want it to be an income or expense as I don't think I'd want it to show up on the Profit and Loss report, but QuickBooks warns me about this when I choose Inventory Asset. Do I not actually want to adjust it using this account? What would be a better account if I don't want to use that one?
Let me bring clarifications to your follow-up question on which account should be used when creating inventory adjustment in QuickBooks Desktop.
If there's no Opening Balance Equity created or if you wish to have a separate one, you can create an account and use it as your inventory adjustment account. You can follow the steps provided by my colleague.
I'd appreciate if you let me know how it goes. I'm still here whenever you need help with inventory adjustment.