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Join nowHow do I enter a cost reduction towards an inventory purchase without reducing the quantity of the inventory? For example: I entered a bill for 1 widget for 10,000, then I pay $5,000 for the widget. Upon delivery it is discovered that the widget isn't as valuable as we thought, so we negotiate with the seller to reduce the cost to $7,000. If I enter a credit for $3,000 it reduces the amount I owe for the final payment, but it also reduces the inventory count for that widget to 0.
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Here is how you fix it without screwing up any inventory counts or gen ledger accounts:
Hello there, SIGMA03.
We can adjust widget's item cost and delete and recreate the bill and its payment. This way it'll set the cost to the negotiated amount and won't zero out the quantity.
Let me show you how:
Let's go to the vendor's list of transactions to open the Bill Payment and click Delete from the menu. Do the same thing for the Bill. You can also check out this article for more details in adjusting your item's quantity or value.
I'll be here if you need more help. Thanks!
The problem with modifying the bill is if the adjustment comes in a different period. At that point I can't just edit the bill.
Good day, SIGMA03.
If you're trying to modify a reconciled bill from the previous year and the book has been closed, you'll need to enter the closing date password to allow the modification of the transaction.
However, this may change the sum of all your reconciled transactions, known as the reconcile opening balance. To prevent issues with your balances, it's best to consult your accounting professional.
To know more about setting closing date and password in QuickBooks, see the following articles below:
Please don't hesitate to reach out to me again if there's anything else I can help you with. Thanks for reaching out, wishing you and your business all the best!
Here is how you fix it without screwing up any inventory counts or gen ledger accounts: