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Level 1

If doing an inventory adjustments using inventory shrinkage account, form -5 qty to flat 0 qty, does it add value to your cost of goods sold for those 5 parts?

 
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QuickBooks Team

If doing an inventory adjustments using inventory shrinkage account, form -5 qty to flat 0 qty, does it add value to your cost of goods sold for those 5 parts?

Hi yszcommerce,

 

The Cost of goods sold account is only affected when you sell inventory items on invoices or sales receipts. For adjusting the inventory, it will credit the Inventory Shrinkage account and debit the Inventory Asset. You can run the Transaction Journal for that adjustment by following these steps:

 

  1. Go to + New > Inventory qty adjustment.
  2. Click the clock icon located in the upper left-hand corner before Inventory Quantity Adjustment.
  3. Under Recent Transactions, select the inventory adjustment or click on the View More link.
  4. Click More located at the bottom and choose Transaction journal.

 

 

I'm also adding these articles for more information about inventory adjustments:

 

Please let me know if you have any additional questions by adding a comment on this thread. Take care and stay safe.

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Level 15

If doing an inventory adjustments using inventory shrinkage account, form -5 qty to flat 0 qty, does it add value to your cost of goods sold for those 5 parts?

@yszcommerce 

 

No it adds the total item cost back into inventory asset and takes that amount from the COGS shrinkage account

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