How to delete inventory shrinkage? I dont understand this feature and it ruined my figures.

I can share some information to help you with deleting the inventory shrinkage, @accounting-ygpso.

Inventory Shrinkage is an account automatically created by QuickBooks Online (QBO) once you adjust the quantity on hand on your inventory product. This is a default account that is used to record all the adjustments or changes you've made. 

I always suggest reaching out to an accountant when editing inventory adjustment entries.

You can use the Advanced search function in QBO to find and delete this transaction.

Here's how:

1. Go to the Search icon (magnifying glass) on the toolbar and click on Advanced search.
2. In the Inventory adjustment account drop-down, select the appropriate account.
3. From the All Transactions dropdown, pick Inventory Quantity Adjustment.
4. Click on Search.
5. Choose the adjustment that you need to remove and click on Delete.

For more information about Inventory Shrinkage, and how to edit or delete it, refer to this article: Adjust inventory quantity on hand in QuickBooks Online.

You can update an existing inventory quantity adjustment rather than create a new one. You may also make changes to the inventory or add new items as needed. See this guide for more information: Edit an inventory quantity adjustment.

After that, you can run reports to check what's your best sellers, what’s on hand, the cost of goods, or your inventory status: Use reports to see your sales and inventory status.

Let me know if you still need further help with deleting your inventory shrinkage. I'm always here to help. Have a great rest of the day!

Hi joy, appreciate your fast response, as i felt very helpless using QBO because their hotline in the philippines is just open from mon-fri, which is very hassle for business managers like me who is newbie to QBO and need realtime help. 

By the way, I already deleted the SHRINKAGE INVENTORY, however why its still showing in my DASHBOARD as expenses? and because of that, my PROFIT and LOSS report is now showing negative amount. This is crazy.

Appreciate the update, @accounting-ygpso.

I'll help delete the inventory shrinkage account in QuickBooks Online.

Yes, Inventory Shrinkage is an account automatically created after an inventory adjustment is made. Since you've already removed the said adjustment, let's also delete the account and fix the figures of your Profit and Loss report.

To do so:

1. Go to Accounting.
2. Select Chart of Accounts.
3. Enter Inventory Shrinkage in the text area next to the Batch Actions menu.
4. Under the Action column, select the Run Report menu.
5. Select Make Inactive.
6. Click Yes.

I'm adding this reference that'll help you understand your account and its transaction history which breaks down how much money you have or owe: The Chart of Accounts in QuickBooks.

Let me know in the comments below using the Reply button if you've got questions other than changing an account detail. I'll be here ready to lead a helping hand. Take care always!

Hi, it seems like to are just relying in your script but you really don't comprehend what my issue is. 

as I have mentioned, I already deleted /set to inactive the INVENTORY SHRINKAGE. However, why its still showing in my profit and loss as negative amount? pls refer to my screenshot. 

my question is WHY?

Hi @accounting-ygpso,

I did make sure we are on the same page by recreating your situation base on how you describe it.

Yes, the Inventory Shrinkage account will still show up with a negative amount on the Profit and Loss report even after making it inactive. The negative amount is the total cost of the adjustment made and it does not affect the whole total of your Profit and Loss report.

If you're still unsure with the figures of your report, I recommend contacting your accountant for assistance. They can help you understand how each amount of the accounts determine the total figures of your report.

If there's anything else that I can help you with, please let me know in the comments. Stay safe!

here's the root cause of this shrinkage question. 

What do you mean by ITEM ADJUST QUANTITY in QBO?

is that a "minus" to my inventory assets?

or a "plus" to my inventory assets?

Thanks for getting back here, @accounting-ygpso. I'm here to clarify things about inventory quantity adjustment in QuickBooks Online (QBO).

In QBO, adjusting your inventory quantity will increase the balance of your inventory assets. 

That said, you can reach out to an accountant if you're still having issues with your report. They can help you track what's causing those amounts. They can also advise you on the steps to take and keep your books accurate.

In addition, kindly visit this article to give you more insights about tracking inventories in QBO: Adjust inventory quantity on hand in QuickBooks Online.

Stay in touch with me if you have follow-up questions about inventory quantity adjustment in QBO. I'll be right here to provide the information that you need. Keep safe, @accounting-ygpso!

were you able to solve this problem? I am having the exact same thing!! I manually adjusted quantity of some products and now have this inventory shrinkage problem in my reports!!