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