How do I adjust inventory without it being recorded as Inventory Shrinkage?

I had inventory tracking activated in Quickbooks.  My sales transactions would come through and it was properly accounted for in the inventory levels.  

My account was accidently downgraded and I lost inventory tracking.  As a result, all the inventory that I had in stock was written off as Inventory Shrinkage.  

I upgraded my plan and reactivated inventory tracking.  I went back in and added my inventory as it was at the initial level when I brought it in from my supplier and recorded it as the past date of the inventory expense transaction.  

I went in and deleted the Inventory Shrinkage transactions.  

My current inventory levels reflect that my initial starting level when I purchased the inventory.  

I need to adjust the inventory to reflect the current levels, account for the previous sales transactions.  When I go in and edit the inventory level manually, it is being accounted as Inventory Shrinkage.  If I try to charge the initial starting value to the current inventory level and choose today as the initial date, I get an error message that states the start date must comes before any transactions that used this item.

How can I set my inventory to the current value without it recording as Inventory Shrinkage?

Hello dane3,

When adjusting the quantity on hand of an inventory item, QuickBooks Online automatically records the adjustments to your Asset and Cost of Goods Sold. Thus, also affecting the Inventory Shrinkage account. You can use this link for reference: Adjust inventory quantity on hand in QuickBooks Online.

We can create a journal entry to adjust your inventory. However, this would require the guidance of your accountant. They'll be able to determine what accounts should be debited or credited.

Let us know what are the suggestions of your accountant so we can further assist you. Have a great day!