Is there a way to remove the inventory shrinkage without affecting the inventory? I know how to remove either one but it offsets each other. Is it possible or not?

Let me share some information on how the inventory shrinkage affects your inventory, @balloonweights.

The Inventory Shrinkage account is one of QuickBooks' pre-created accounts. This is automatically created once you adjust the quantity on hand of your inventory item. Also, this is the account where all the changes or adjustments are recorded.

If you want to undo the adjustment, you can delete it to remove any records of adjustments. However, this will not remove the Inventory Shrinkage account in the system. Here's how:

1. Hover to the Search icon.
2. Click Advanced Search. 
3. Search for Inventory Quantity Adjustment. 
4. You can filter the adjustment to see the desired item.
5. Click to open the item. 
6. Click Delete, then select Yes to confirm. 

On the other hand, if you wish to remove the inventory shrinkage, there's no direct way to do it. You can make it inactive. Here's how:

1. Go to the Gear icon.
2. Choose Chart of Accounts.
3. Click the down arrow beside View register in the ACTION column.
4. Select Make Inactive.
5. Click Yes to confirm.

You can read through this article for more detailed information about this process: Delete or Make an Account Inactive.

Keep in touch if you have other questions about managing your chart of accounts in QuickBooks. Have a great day!

hello,

if i want to make my inventory shrinkage inactive, there is obviously an amount in this account.

when making it inactive will this affect any other account and how do i find if accounts are linked to it ?

 Thanks for following this thread, @9130 3496 4026 6886. 

When you inactivate an account in QuickBooks, the system will make an automatic adjustment entry to zero out the non-zero balance of the inactive account. 

It may affect the account linked to it, and can potentially cause incorrect tax info to be filed.

To know if there are other accounts linked to it, you can check any product with either income or expense account that allocates to Inventory shrinkage. 

Then, change the account into the correct income and expense account.

Here's how:

1. Click the Gear icon, then choose the Product and Services.
2. Manually click each item to verify the information by clicking the Edit link.
3. Change the account into correct income and expense.

For future reference, see this article to learn more about adding your inventory products in QuickBooks.

Get back to me if you have follow-up questions or additional concerns. I'll be here to help you again.