Inventory

I appreciate you connecting with us here in the Community, @drevell3.

Yes, adjusting your inventory quantity will modify the balance of your inventory assets. With this, QuickBooks automatically update appropriate adjustments to your accounts. 

Let me walk you through the steps on how you enter an inventory adjustment:

1. Click the + New button, and select Inventory Qty Adjustment.
2. Enter the Adjustment Date.
3. In the Inventory adjustment account drop-down, select the appropriate account.
4. Select the products in the Product field. 
5. For each item, enter either a new quantity or a change in quantity.
6. In the Memo field, enter the details about the adjustment.
7. Once done, select Save and close.

For more detailed information from the steps provided above, you can refer to this article: Adjust inventory quantity on hand in QuickBooks Online.

Also, I'd suggest reaching out to your accountant to provide you with the best possible approach to your inventory adjustment.

Furthermore, you can check out this article on how to use reports to get track of the things you buy and sell and the status of your inventory: Use reports to see your sales and inventory status.

Feel free to leave a comment below if you require further assistance with inventory adjustments. I'm here to help. Keep safe!

Thank you Candylane!  Could I enter the date of original purchase of the inventory if it is before the inventory was sold?  Is there anyway to get rid of the automatic inventory shrinkage duplication of inventory  in the inventory asset account?

Thank you for your response, @drevell3. I'm here to share additional information about your concern.

Yes, I agree with you. You'll need to enter the original purchase date of the inventory before it was sold.

Furthermore, it is typical for inventory in the inventory asset account to be duplicated automatically due to shrinkage. The lines in your inventory adjustments would appear to be duplicated, but your inventories' quantities would not necessarily be duplicated. Let me give you some specifics so you are aware of how inventory adjustments work.

The accounts that are impacted when you make an inventory adjustment are your Inventory Asset and Inventory Shrinkage. There will be two sets of adjustments in the Transaction Journal for your inventory. It's the adjustment for which there are no amounts that indicate a change in the amount of your inventory. The other indicates how the value of your merchandise has changed.

Additionally, you may also reach out to your accountant for further assistance to ensure the accuracy of your books since they know what's best for your business.

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

In case you'll want to make changes to the inventory or add new items as needed. See this guide for more information: Edit an inventory quantity adjustment.

I'll also be adding this article for future reference: Use reports to see your sales and inventory status.

Feel free to reach back to us if you have any other QuickBooks-related concerns. Have a good one!

I am the accountant and I am trying to enter her inventory as opening balance equity at this point because Quickbooks online will simply not let me enter the inventory the day before the bill when her inventory should be zero.