Manage Inventory in QuickBooks Desktop and QuickBooks Online

Adjustments and modifications to your tracked inventory are a breeze using QuickBooks. Made a mistake while making adjustments, then find how to delete, edit, and adjust Inventory in QuickBooks.

QuickBooks business accounting software is recommended by top accounting professionals. It is one top-class software to maintain your accounts online. You not only can record financials but can track your physical inventory as well.

What is Inventory Adjustment?

The process of changing your inventory counts in QuickBooks to match your real stock levels with your records involves either increasing or decreasing your stock list. You must perform a physical count and update your inventory to reflect the latest stock if you purchase twenty units of a new product.

Inventory Adjustment in QuickBooks

QuickBooks is loaded with numerous features and tools that have made business accounting management simple and easy. The software helps in…

• Generating reports,
• Tracking sales,
• Tax planning,
• Inventory management and much more.

There are times when QuickBooks users need to deal with inventory adjustments. Though some find it hard and for others, it’s a cakewalk. It is especially new QB users that find it extremely complex and confusing to deal with such a problem.

Adjust Inventory Quantity or Value in QuickBooks Desktop

While you keep track of each buy and sale, QuickBooks Desktop adjusts inventory values and amounts. However, in order to maintain the accuracy of your inventory status in QuickBooks, you may need to make adjustments to your records. Do not worry if you do not know how to accomplish this. We will help you in determining the kind of adjustment you require and how to make it.

Step 1- Adjust the quantity on hand or total value

When to adjust the quantity on hand

It’s common to sometimes change the quantity of a product. This is how you track any change in product amount that isn’t the result of a sale or purchase. For example, if an item breaks or if an inventory count reveals you have more or fewer of it.

When to adjust the total value?

The total worth of your product is the product of its average cost and the quantity that is in stock. This value may be impacted by factors like spoiling or seasonal demand. It’s advisable to consult your accountant before making any changes to the value of your inventory. We can help in locating a nearby accountant if you don’t already have one.

Step 2: Set up inventory adjustment account

To keep track of your adjustments, make a separate account in your chart of accounts.

• You have to select Company and then you have to click Chart of Accounts.
• Choose New from the Account dropdown menu.
• Choose Cost of Goods Sold from the Other Account Types dropdown menu.
• Give this account the name Inventory Adjustments, then Save and Close.

Step 3: Adjust your inventory

After creating your adjustment account, you can change the value, quantity, or both of a product. Look how…

• After choosing Vendors, select Inventory Activities
• Choose Modify Quantity/Value on Hand after that.
• After choosing Inventory, you have to choose Adjust Quantity/Value on Hand.
• Choose Quantity, Total Value, or Quantity and Total Value from the Adjustment Type dropdown menu.
• After choosing your adjustment account, choose the adjustment type option.
• You have to enter the Adjustment Date.
• After choosing the adjustment account you created, pick the Adjust Account menu.
• Include Reference No. Also, you can assign a customer, task, or class.
• Click on Find & Choose Items.
• Select the items you want to adjust then use the Find area to look for any product if you have a lot.
• Select Add Selected items.
• For every item, add a new value or quantity, or both.

• Then you can select Save and Close.

Step 4: Ensure inventory status is now correct

Examine your inventory status reports to ensure everything appears to be in order.

• Firstly, you have to select Reports and then Inventory.
• Click on Inventory Valuation Summary to see the worth of your product.
• Choose the Inventory Stock Status by Item option to find out how much of your product is left.
• Look the items you changed to ensure everything is in order.

Adjust Inventory of Finished Goods in QuickBooks Desktop

Are you new to keeping track of the goods you produce? QuickBooks allows you to create products by combining inventory components with other goods. To find out how to get started, view our overview of inventory assembly.

Step 1: Unbuild a Product, Stock of finished goods

You can modify your finished goods stock in two different ways.

Unbuild a product your assembled

You can reduce an assembly’s quantity and put its parts back into stock when you unbuild it. If you want to reuse these components you have to follow this method.

Adjust your stock of finished goods without affecting stock of components

If you are able to return the parts of an assembly to your inventory, use this process. For example, when a product breaks and its components can no longer be reused. Or in case its cost changes because of seasonal demand.

Step 2: Create your adjustment

Here’s how to make the changes after you know how to create it.

Unbuild a product you assembled

• Choose Item List from the Lists menu.
• Locate and pick the assembled object that you wish to unbuild.
• Choose QuickReport from the Reports drop-down menu located at the window’s bottom.
• Locate the build transaction that has to be changed.
• Then, you have to double-click to open.
• The build transaction can be removed, and the quantity can be changed:
  • Click Edit and Delete to remove something. Then, to confirm, you have to choose Yes.
  • In the Quantity to Build field, enter a new quantity to change the quantity.
  • Choose Build & Close after that.

Adjust Inventory Quantity on Hand in QuickBooks Online

There are situations where you may find that you have more or less of an item than QuickBooks indicates. You can manually change an item’s quantity in QuickBooks Online Plus and Advanced to reflect what you actually have in stock without having to record a purchase or sale.

Method 1- Enter an inventory quantity adjustment

• You have to select +New.
• Then you have to select Inventory qty adjustment.
• Put the date of adjustment here.
• Choose the relevant account from the dropdown menu for the inventory adjustment.
• Enter a new quantity or a change in quantity for every item.
• Enter the adjustment’s detail in the Memo area.
• Lastly, you have to save and close.

Method 2- Edit or delete an inventory quantity adjustment

When changing inventory adjustment entries, exercise extreme caution. This has a significant effect on your accounting. Speak with your accountant if you are unsure if you should take this action.

• You have to begin by selecting Search, then you have to select Advanced Search.
• Then, you have to select inventory Quantity Adjustment from the All Transactions dropdown menu.
• Choose the relevant account from the dropdown menu for the inventory adjustment.
• After choosing Search, click the adjustment you wish to change.
• The inventory quantity adjustment is now open. It is possible to make new changes, edit old ones, or delete them.
  • To edit previous adjustments:
    • You have to change the Adjustment date and the inventory adjustment if needed.
    • You can edit the details in the Previous Adjustment section.
  • To add new adjustments:
    • You can enter the details in the New Adjustments section.
  • To delete:
    • You have to select Delete.
• (Optional) You have to enter a note explaining why you edited the adjustment in the Memo field.
• You have to select Save and Close.

QuickBooks records appropriate adjustments automatically to your stock Asset. Thus making it simpler to work with QuickBooks. Hope you now have a much better idea of how to delete, edit, and adjust inventory in QuickBooks. But in case you are still not able to figure out and know how to add Inventory in QuickBooks, then talk to our customer care executive.

The QB Consultant team is approachable via phone, email, or live chat mode. They assure quick and responsive consultant through the QuickBooks consultant experts. Thus wait no longer and give us a call now.

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