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wz-lieberman
Level 1

QBO: When processing Other > Inventory Adjustment, I get the accounting I expect (Dr:Shrinkage Cr:Inventory), but also get duplicate entry with same accts but no amounts

 
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Best answer April 17, 2019

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Alessandra_B
QuickBooks Team

QBO: When processing Other > Inventory Adjustment, I get the accounting I expect (Dr:Shrinkage Cr:Inventory), but also get duplicate entry with same accts but no amounts

Hello @wz-lieberman,

 

Your inventory adjustments would show duplicated lines but they aren't necessarily duplicating the amounts of your inventories. Let me provide some details and get you familiarized the ins and outs of inventory adjustments.

 

When you create an inventory adjustment, the affected accounts are your Inventory Asset and Inventory Shrinkage. In the Transaction Journal of your inventory adjustment, it'll show two sets of the adjustment.

 

The adjustment wherein there are no amounts denotes the change in your inventory quantity. While the other denotes the change in the value of your inventory.

 

I've attached an article for more information about inventory.

 

Feel free to leave a comment below if you have any other concerns.

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6 Comments 6
Alessandra_B
QuickBooks Team

QBO: When processing Other > Inventory Adjustment, I get the accounting I expect (Dr:Shrinkage Cr:Inventory), but also get duplicate entry with same accts but no amounts

Hello @wz-lieberman,

 

Your inventory adjustments would show duplicated lines but they aren't necessarily duplicating the amounts of your inventories. Let me provide some details and get you familiarized the ins and outs of inventory adjustments.

 

When you create an inventory adjustment, the affected accounts are your Inventory Asset and Inventory Shrinkage. In the Transaction Journal of your inventory adjustment, it'll show two sets of the adjustment.

 

The adjustment wherein there are no amounts denotes the change in your inventory quantity. While the other denotes the change in the value of your inventory.

 

I've attached an article for more information about inventory.

 

Feel free to leave a comment below if you have any other concerns.

GiuliettaM
Level 2

QBO: When processing Other > Inventory Adjustment, I get the accounting I expect (Dr:Shrinkage Cr:Inventory), but also get duplicate entry with same accts but no amounts

Hello, we're seeing the same thing happening with our adjustments. Why does it show the second set if there is nothing happening in that set? Is there a way to keep it from doing this? When we have to dig in to our inventory because of a discrepancy that this could easily start causing confusion, especially as we expect to be making weekly adjustments as a work around for our RMA process. I would definitely appreciate some more information.

Michael K
Moderator

QBO: When processing Other > Inventory Adjustment, I get the accounting I expect (Dr:Shrinkage Cr:Inventory), but also get duplicate entry with same accts but no amounts

Thanks for joining the thread, @GiuliettaM.

 

Happy to provide some additional insight into why you're seeing to entries when doing an inventory adjustment. As my colleague mentioned previously, the second entry with no amounts represents the change in your inventory quantity, while the other is the change in value of the inventory. Quantity represents the number of on hand product you have, while value is the dollar amount of the on hand product you have.

 

For more information on inventory adjustments in QuickBooks Online, you can check out: Adjust inventory quantity on hand in QuickBooks Online

 

Let me know if you have any other questions. I'm here to ensure your success.

BardwellJ
Level 2

QBO: When processing Other > Inventory Adjustment, I get the accounting I expect (Dr:Shrinkage Cr:Inventory), but also get duplicate entry with same accts but no amounts

I want to split the inventory adjustment account into two accounts, separated by a fiscal year, because of a change in status of my company. Let's call those inventory adjustment account #1 and inventory adjustment account #2. I can change the account that the inventory adjustment is assigned to (from #1 to #2), but only for one of the pair of inventory adjustment lines referred to above. The one that will change is the quantity line, but not the value line. 

 

When I run the report for account #1, the value line still shows up in the report, but the quantity line has been successfully moved to account #2. However, when I click on the lines remaining in the report for account #1, it shows that they are assigned to account #2. How can I fix this?

KlentB
Moderator

QBO: When processing Other > Inventory Adjustment, I get the accounting I expect (Dr:Shrinkage Cr:Inventory), but also get duplicate entry with same accts but no amounts

Hi there, BardwellJ.

 

Let me share some information about how inventory adjustment works.

 

Take note that you can only select one account when you create or edit an inventory adjustment. Once you save the transaction, QuickBooks Online automatically records appropriate adjustments to your stock Asset and Cost of Goods Sold (under Stock Shrinkage) accounts.

 

For the line containing the quantity, you can open the adjustment and change the stock adjustment account. For the line containing the value, you'll have to change the inventory asset account of the inventory items involved.

 

I would also appreciate it if you could tell me how did you adjust your inventories. This way, I'll be able to provide you with additional explanation/information.

 

Lastly, here's an article that you can read to help manage your inventory in QBO: Set up and track your inventory.

 

Feel welcome to reach out to me again with any concerns or questions you may have. I'll always have your back.

BardwellJ
Level 2

QBO: When processing Other > Inventory Adjustment, I get the accounting I expect (Dr:Shrinkage Cr:Inventory), but also get duplicate entry with same accts but no amounts

Thanks KlentB,

 

You wrote:  For the line containing the value, you'll have to change the inventory asset account of the inventory items involved.

 

Currently, the inventory asset account for all the inventory items is called "Inventory". Should I duplicate each inventory item, and assign one to "Inventory #1" and one to "Inventory #2"? And then, for items added to inventory after the business transition, I would use the copy assigned to Inventory #2? 

 

Jennifer

 

 

 

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