Owner uses inventory after it is entered into QuickBooks

Thank you both for your replies.
I should have stated originally that owner is a sole proprietor, company is an LLC.
We are fine on all other bookkeeping, it is just that I am new to items.  Owner orders items using bulk amounts for best wholesale pricing, we receive items & enter into stock, but do not add a sell rate as selling prices vary.
Owner then removes some of the items for their personal use.  We need to show the lowered quantity & our state tax entity gave a ruling that these items are taxed at original cost, not value, for use tax.
My dilemma is how to show the items removed, I understand if we were discarding items it is at value but these are for owner use.
And when I try to adjust using "Adjust Quantity/Value on Hand > Adjustment Type > Quantity & Total Value" the quantity part works but not the value - this needs to be actual cost.
I do use the owner draw account for the "Adjustment Account" in the Adjust Quantity/Value on Hand screen.
Rustler, I understand the idea of a bill, but the owner is also paying the use tax thru the company so I need to show that as part of owner draw.  Would a GJE entry accomplish the same thing using owner draw/debit<>tax liability/credit?
So I am looking for the entries that show lowered quantity, correct value to owner draw, and sales tax liability. And I keep thinking there should be a simple answer!
Thank you again!

You state " We purchase items & put into inventory. We are still entering item inventory quantity from end of last year. Due to this we may have an item name but no quantity yet.
Our state requires use tax on removed items.
Owner removes item for personal use. I try to make inventory adjustment"
Just on the above you have various tax questions as to the business COS (tax deductions ) both if Schedule C or Corp tax return filing. not including  also "use tax" to your State.  A full review of you bookkeeping, costing,  financial and tax procedures must be done.

@ agd6

you say you are receiving items and there is no value associated when you use an adjustment?
See this for a How To Receive Inventory Items. (desktop)
http://onsale-apparel.com/Rustler/tag/how2-rcv-inven
are you doing it that way?

Again stay away from adjusting value unless you have a very good reason, it is an audit magnet.  Just use a qty adjustment, that will adjust qty AND value - the name qty adjustment means that is what you are going to use to make the adjustment, it does not mean that qty is the only thing adjusted

If the owner is going to pay use tax, enter the bill, select the tax agency vendor and use owner equity or equity drawing as the account on the bill.

inventory adjustments are always at cost, whether you set a sales price or not has nothing to do with inventory stock average costing.

Thank you Rustler!
We are not using a PO. I enter the bill after items received using item tab.
We have items from end-of-year inventory last year that we are transferring to QB.

So the items purchased this year have name/quantity/cost. The items transferring to QB have name but not quantity/cost yet. I am still going thru old bills to find quantity/costs.  The owner is using products from old inventory & new inventory.

Per our state tax entity, the ruling they gave us was matched to "if purchase is made out of state & no sales tax paid at time purchase you are responsible for paying use tax at cost of item not value of item."

So if I try to use "Adjust Quantity/Value on Hand > Adjustment Type > Quantity & Total Value" the value in the right hand corner does not accurately reflect the total upon which use tax must be paid.

The owner uses $200.00 worth of products, this is the taxable amount, the use tax is $16.75. I must show the owner draw as $200.00 and the owner draw use tax as $16.75.

POs are optional as I stated in the example

If you do not have cost for an item in inventory because you are still trying to get it entered, then of course you can not get cost for that item out during an adjustment