how do I remove inventory shrinkage from my P&L?

Hi there, Gunni14. 

Inventory Shrinkage is an account automatically created after an inventory adjustment is made. Since you've already adjust the product to zero, we can make the account inactive, and it will no longer show in your Profit and Loss report.

To do so:

1. Go to Accounting.
2. Select Chart of Accounts.
3. Enter Inventory Shrinkage in the text area next to the Batch Actions menu.
4. Under the Action column, select the Run Report menu.
5. Select Make Inactive.
6. Click Yes. 

I'm adding this reference that'll help you understand your account and its transaction history which breaks down how much money you have or owe: The Chart of Accounts in QuickBooks.

Please check this article on how to check your inventory so you'll always have an accurate count: Fix negative inventory issues in QuickBooks Online.

Please let me know if you need further help with your inventory management. I'll be glad to work with you at any time. Have a good one!

@Gunni14 

The advice given by @AileneA is incorrect.  Making an account inactive does not remove it from your P&L, it only makes it so that you can no longer post to that account going forward.

You need to make a journal entry to remove it from your P&L.  Presumably, you know how to properly reclassify the shrinkage.  To make the journal entry (New > Journal entry), debit the account that the shrinkage should be reclassified to and credit inventory shrinkage.  

Thank you @Rainflurry 

You are correct, it does not remove it when I make it inactive.

Thankyou for your instructions on creating journal entry to remove it.

Hi,

If I need to make a general journal entry to remove the inventory shrinkage account from our P & L report, which account should I allocate it to?

I need to make sure that if I do this that our current inventory numbers will stay in place.