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ellen9362
Level 1

Inventory adjustment cost of goods

I am running QBEnt Platinum Retail Edition with the advanced inventory module.

When I count my physical inventory at the end of the month I often need to make a change to the quantity on hand, and/or the average cost calculated.

When I make an inventory adjustment in the inventory module, QB defaults to an "inventory adjustment" cost of goods account. It does this whether the change is quantity or value. My question is, should the account adjusted actually be to the inventory - asset account. Maybe quantity as an inventory asset account adjustment, and value as a cost of goods adjustment? Any ideas would be helpful.

Thanks, Ellen

Solved
Best answer December 10, 2018

Best Answers
qbteachmt
Level 15

Inventory adjustment cost of goods

"and/or the average cost calculated."

Why would you need to change this? The program is already managing this part.

"When I make an inventory adjustment in the inventory module, QB defaults to an "inventory adjustment" cost of goods account. It does this whether the change is quantity or value. My question is, should the account adjusted actually be to the inventory - asset account."

The function you are using is Already you, working IN the asset account, by reference to specific items.

"Maybe quantity as an inventory asset account adjustment, and value as a cost of goods adjustment?"

Never consider those as separate. The Cost is associated to the items. They are the Same Item. The COGS entry will be the "changes" bucket for Value. You don't typically Change Average Cost, and that is why I asked about this as my first comment. This is already coming from your Actual Purchases.

"Any ideas would be helpful."

You might adjust for Quantity due to damage, theft loss, etc. You might adjust qty AND value because you put back into stock something you previously removed, or created a new thing out of two other things (down $ = up $, for different item names).

Simply adjusting Average Cost is a rather odd task to be doing.


View solution in original post

3 Comments
qbteachmt
Level 15

Inventory adjustment cost of goods

"and/or the average cost calculated."

Why would you need to change this? The program is already managing this part.

"When I make an inventory adjustment in the inventory module, QB defaults to an "inventory adjustment" cost of goods account. It does this whether the change is quantity or value. My question is, should the account adjusted actually be to the inventory - asset account."

The function you are using is Already you, working IN the asset account, by reference to specific items.

"Maybe quantity as an inventory asset account adjustment, and value as a cost of goods adjustment?"

Never consider those as separate. The Cost is associated to the items. They are the Same Item. The COGS entry will be the "changes" bucket for Value. You don't typically Change Average Cost, and that is why I asked about this as my first comment. This is already coming from your Actual Purchases.

"Any ideas would be helpful."

You might adjust for Quantity due to damage, theft loss, etc. You might adjust qty AND value because you put back into stock something you previously removed, or created a new thing out of two other things (down $ = up $, for different item names).

Simply adjusting Average Cost is a rather odd task to be doing.


View solution in original post

ChSmith
Level 1

Inventory adjustment cost of goods

Hi,

 

I hope someone can help me to figure this out... If I make an Inventory adjustment, same items, same cost, just moving to different SKU, why QB gives me an "adjusted Value" since there is no difference in price?

 

Any ideas can be helpful.

Thank you

Chely S.

JenoP
QuickBooks Team

Inventory adjustment cost of goods

Hi there, Chely.

 

There are only types of inventory adjustment in QuickBooks Desktop; adjusting the quantity on hand and adjusting the total value. Both of them generates a new value since either the number or the value of the items are changed.

 

Here's an article for more details: Adjust Your Inventory Quantity or Value in QuickBooks Desktop.

 

You can open the adjustment and check if a quantity or value was adjusted. 

 

If you're referring to moving items to a different location, check out this article for more details: Multiple Inventory Sites.

 

I'd also like to share these additional articles for more guidance and reference: 

 

 

Let me know if you need anything else. The Community is always here to help.

 

 

 

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