I am trying to re-organize my books before the end of 2020 and one of the things that I had to do was re-created each product as well as recreate each transaction. The original inventory was not properly recorded so I had to start fresh to get accurate numbers moving forward.
I've recreated every PO, invoice and sales receipts with the proper products, which leaves out the original inventory.Even when I make the original products inactive, It still accounts for $22k in inventory shrinkage on my expenses--- not correct.
Trying to adjust the " start quantity" to 0 and adjusting the "inventory on hand" to zero, it still attributes it that money value to inventory shrinkage on my expenses.
I learned deleting products is not possible. Is there any way to zero-out all of the unwanted inventory without it being accounted for in my expenses?
I have a way here where we can zero out the value, @Ccalabrese.
Thanks for dropping by in the Community. You can follow these instructions to get your concern resolved.
You can inactivate the items. QuickBooks Online uses Inventory Shrinkage as a default account where losses are located. If you wish to allocate these items to a different account, you can create another one. Here’s how:
Go to the Gear icon and select Chart of Accounts.
Click New to create a new account.
Select and enter the necessary details in each field.
Press Save and Close when you’re done.
Then you’ll need to edit the Inventory Quantity Adjustment to a different account, so it allocates somewhere else. I’ve attached a screenshot for your visual reference:
To check the inventory status in the system, you can utilize reports to view them.
If you have other inventory concerns, please let me know. I’ll be here to help you out.
My view is different within QB online. It requires me to declare account type and detail type. I have done inventory adjustments along the way but they are all on Products that I am trying to zero out. Does that have anything to do with it?
Also, the screenshot said "Inventory Adjustment #1". I know how to do the inventory adjustment, so is that where I zero every item out? not creating a new account?
I'd be happy to address your follow-up question about inventory shrinkage, Ccalabrese.
If you're referring to the Account Type and Detail Type found when creating a new account, that is normal. If you're not sure which account and detail to use, I recommend reaching out to your accountant. This is to make sure everything is accurate.
Regarding your question about the screenshot for Inventory Adjustment, the answer is yes. From there you can manually change the New QTY to zero.
Here’s how to edit your product and service item:
Go to the Gear icon.
Select Products and services.
Locate the product you want to adjust and click the Quantity link under the Quantity on hand column.
Enter zero under the New QTY column of the item then click Save and close.