Inventory cost adjustment

market value is not an inventory valuation method during the year

Lower of cost or market (LCM) valuation is a tax time concept you can choose.  As the name implies first you have cost, then you find out market, do a spreadsheet and value each item per the lower of the two prices - again that is only for taxes

cost is what you paid for it. sell it and take the loss, adjust it off the books after you trash/destroy it

but you do not juggle cost

Their books are kept on the tax basis. I was hoping it could be done like desktop.

I keep my books on tax basis

Using LCM is an option for tax reporting valuation, it is not cost accounting.

tax reporting can be different than the P&L in a couple of areas, LCM is one of them, 50% deductibility on meals expense is yet another

How do you track the COGS for tax? If the items were written down for tax purposes but not book- the items you sell in the next year will have the COGS reported at original cost. Each year you will have to look back at what you sold vs what you didn't and make a tax adjustment for the items sold. It seems easier to adjust the items in the program to track them at the tax cost.