Learn how to adjust the quantity or total value of your products in QuickBooks Desktop.
QuickBooks Desktop updates inventory quantities and value as you track every purchase and sale. But you might have to record an adjustment every now and then to keep your inventory status in QuickBooks accurate.
If you’re unsure how to do this, don’t worry. We’ll help you learn what type of adjustment you need and how to create it.
Note: Need to adjust your stock of finished goods? Follow this method if you don’t have to return an assembly’s parts to your inventory. If you need to "unbuild" an assembly item and return its components to inventory, here's what you can do.
Step 1: Decide what kind of adjustment you need
When to adjust the quantity on hand
It’s normal to adjust a product’s quantity from time to time. This is how you track any kind of decrease or increase in product quantity that’s not because of a sale or purchase. For example, when an item breaks, or if you find you have fewer or more of it after doing an inventory count.
When to adjust total value
Your product’s total value is its average cost multiplied by its quantity in stock. Things like seasonal demand or spoilage can affect this value.
Tip: It’s best to reach out to your accountant for advice before you adjust inventory value. If you don’t have an accountant, we can help find one near you.
Step 2: Set up your inventory adjustment account
Create a separate account in your chart of accounts to track your adjustments.
- Select Company and then Chart of Accounts.
- Select the Account ▼ drop-down, then New.
- From the Other Account Types ▼ drop-down, select Cost of Goods Sold.
- Name this account “Inventory Adjustments”, and then Save and Close.
Step 3: Adjust your inventory
Once you set up your adjustment account, you can adjust a product’s quantity, value, or both. Here’s how.
- Select Vendors and then Inventory Activities. Then, select Adjust Quantity/Value on Hand.
- Select the Adjustment Type ▼ drop-down, then select Quantity, Total Value, or Quantity and Total Value.
- Select the Adjustment Type ▼ drop-down and then select your adjustment account.
- Enter the Adjustment Date.
- Select the Adjust Account ▼ drop-down, then select the adjustment account you set up.
- Add Reference No. You can also assign a customer, job, or class.
- Select Find & Select Items. Select the items you want to adjust. If you have a lot, search for any product in the Find field.
- Select Add Selected items.
- Add a new quantity or new value (or both) for each item.Tip: It helps to check the quantity difference when recording a quantity adjustment. The difference should be negative if you’re recording a decrease in quantity. If you’re recording an increase, it should be positive.
- Select Save and Close.
Step 4: Make sure your inventory status is now correct
Take a look at your inventory status reports and make sure everything looks good.
- Select Reports and then Inventory.
- To check your product’s value, select the Inventory Valuation Summary. To check your product’s quantity, select the Inventory Stock Status by Item.
- Look for the items you adjusted and make sure everything is correct.