Good morning and thank you in advance for your help!
I am trying to help a new bookkeeping client with their inventory problem. They have been using QB as their point of sale in their store. They have entered all of their inventory items into QB, and when they make a sale, the inventory shows the item quantity decreasing. However, when they have purchased new inventory, I do not think they have used purchase orders and have been going in manually to adjust the item quantities in their inventory when they receive new items. So their P&L report shows a line item under COGS, "Inventory Shrinkage" with a negative $ amount. From what I can gather, I think I have a fix but I would really appreciate if anyone could verify if this might solve their problem:
If I were to retroactively create purchase orders for their inventory purchases for every one of these quantity adjustments and then match those POs to show they have been paid, would this automatically create the correct inventory quantity adjustments? And then I could delete the manually entered adjustments that were coming up as "inventory shrinkage?"
Thank you so much for your help!
Jennifer Gebhardt
