Inventory Adjustment

Hi there, briton.

I'll share some information about Adjust inventory quantity on hand in QuickBooks Online.

The value of the inventory in QuickBooks Online follows a FIFO process. There will be a possibility that one inventory item will show up twice or more in the report once the purchase value has a different amount. For example, one apple is 300, and when you next purchase this item the value changed to 250. This will show up twice if it is affected by the shrinkage. That's the reason it shows this adjustment to have 37 lines.

To see additional information about inventory quantity in QuickBooks Online and to view sample scenarios to help you understand the concept of FIFO in QuickBooks Online, you can refer to the articles below.

• Adjust inventory quantity on hand in QuickBooks Online.
• What is FIFO and how is it used for inventory cost accounting?.

I suggest consulting an accountant to help you in making the comparison in your inventory adjustments. This is to ensure that your account stays accurate and balance.

Please check this article to see steps on how you can change non-inventory and service items to any other type: Change product and service item types in QuickBooks Online.

Let me know if you have any more questions about inventory management. I'll be glad to help. Have a good one!

Thanks ChristieAnn. That makes sense. I'd forgotten about FIFO.

I have painstakingly compared each line in the adjustment to find out which ones match the shrinkage report. Thus I can now check which items changed value during the FIFO period which should explain the extra lines.

However the cost prices have never gone down so even with FIFO the total amount of the adjustment should not be equal to or less than the valuation of the adjustment in excel using the current cost figures in QB, The only explanation I can come up with for the shrinkage being greater is that the items which have negative shrinkage have increased in price and that this is more than any negative effect of the positive shrinkage. It's unlikely but with your reply I may be able to examine it forensically.

Thanks.