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Intuit

Adjust inventory quantity or value

Learn how to adjust inventory quantity or value of an inventory item in QuickBooks Desktop.

You can adjust the quantity, value, or both quantity and value of an inventory item in QuickBooks Desktop. Although inventory quantities and values are automatically recalculated after every purchase and sale, you may need to adjust them yourself from time to time.

Adjust the quantity of an inventory item

When you adjust a quantity, QuickBooks assumes that the average cost of the item remains the same and adjusts the value accordingly. For example, if the average cost is $10 and you reduce the quantity by 2, QuickBooks reduces the total value of the items on hand by $20.

About adjusting quantity of inventory assemblies

  • Decreasing the quantity of an inventory assembly item may cause finalized inventory assembly builds to change to pending status. Before and after making an inventory adjustment, run the pending builds report (Reports > Inventory > Pending Builds) so you can see if any builds were affected.
  • Adjusting the quantity of an inventory assembly item doesn't affect the quantity of its components (neither inventory parts nor other inventory assembly items) in the Bill of Materials. If you want to disassemble an inventory assembly item and return its components to inventory, you need to decrease the inventory assembly item quantity and increase each component quantity accordingly. For more about inventory assembly items, including how to disassemble, see Create, build, and work with inventory assembly items.

To adjust Inventory quantity:

Step 1: Adjust inventory quantity.

  1. At the top, select Inventory and choose Adjust Quantity/Value on Hand.OR: Vendors > Inventory Activities > Adjust Quantity/Value on Hand.
  2. Select the Adjustment Type drop-down arrow and choose Quantity.
  3. Enter the date of the adjustment.
  4. Select the Adjustment Account drop-down arrow and then choose the account where you want to track inventory adjustments.

    Which account should I use?

    Consider creating a new account for tracking inventory adjustments. You can use one account for all adjustments, or use an expense account for losses and shortages and an income account for gains. If you are unsure what account to use, it is best to consult your accountant. If you're making adjustments to more than one item and need to assign the adjustments to different accounts, you need to create multiple adjustments (one for each account).

  5. (Optional) Enter additional details as needed, such as reference number, Customer/Job, or Class.

Step 2: Find and select items.

  1. Under the Item column, add the items. You can also add multiple items.
  2. Select Find & Select Items, then choose the items you want to add to the transaction.
    • Search for items
      1. In the Find field, enter a search term
      2. (Optional) Select the in drop-down arrow and choose a specific field.
      3. Select the Search button.
      4. In the checkmark column, uncheck the items you don't want to add.Note: To clear your search results, select the Reset button.
    • Add all itemsTo add all items to the transaction, choose the Select All button at the bottom.
    • Select items manuallyIn the checkmark column, select the individual items from the list.
  3. At the bottom, select the Add Selected Items button.

Step 3: Enter quantity adjustments

  1. Enter the quantity adjustment under New Quantity or Qty Difference column. In the Qty Difference column, enter the difference between the quantity currently in QuickBooks and the actual quantity.For example, if you need to reduce the quantity by five, enter -5 as the quantity difference.
  2. (Optional) Enter a memo in the Memo field.
  3. Save the adjustment.

Adjust the value of an inventory item

When should I adjust the value of an inventory item?

The value of your inventory directly affects your financial statements, so keeping the value of your inventory accurate helps ensure the accuracy of your financial statements. If the value of an inventory item changes due to such things as seasonal demand or spoilage, you need to decide if the change is significant enough to warrant a value adjustment.

To adjust inventory value

Step 1: Adjust the value on hand.

  1. At the top, select Inventory and choose Adjust Quantity/Value on Hand.OR: Vendors > Inventory Activities > Adjust Quantity/Value on Hand.
  2. Select the Adjustment Type drop-down and choose Total Value or Quantity and Total Value.
  3. Enter the date of the adjustment.
  4. Select the Adjustment Account drop-down and then choose the account where you want to track inventory adjustments.Which account should I use?
  5. (Optional) Enter additional information as necessary, such as reference number, Customer/Job, or Class.

Step 2. Find and select items.

  1. Under the Item column, add the items. You can also add multiple items
  2. Select Find & Select Items, then choose the items you want to add to the transaction.
    • Search for items
      1. In the Find field, enter a search term.
      2. (Optional) Select the in drop-down arrow and choose a specific field.
      3. Select the Search button.
      4. In the checkmark column, uncheck any items you do not want to add.Note: To clear your search results, select the Reset button.
    • Add all itemsTo add all items to the transaction, choose the Select All button at the bottom of the window.
    • Select items manuallyIn the checkmark column, select individual items from the list
  3. Select the Add Selected Items button.

Step 3. Enter quantity adjustments.

  1. For each item you want to change the value of, calculate the new global value by multiplying the new individual item value by the current quantity on hand.

    Item value calculation

    The amount showing for an item in the Total Value column represents the value for the entire quantity of item currently in inventory. The value is calculated by multiplying the item's current average cost by the current quantity on hand. For example, if you have 15 fasteners on hand and their value is 30, the current average cost for the fastener item is 2 (15 x 2 = 30).

    If you want to change the value of the fastener item to 3, multiply the current quantity (15) by the new individual item value (3) to come up with the new value (45).

  2. (Optional) Enter a memo in the Memo field.
  3. Save the adjustment.

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