Do you need to adjust the quantity of your business’s inventory? QuickBooks Desktop will automatically track inventory quantities. When your business sells a product, the popular accounting software will lower the quantity for it. There are instances, though, in which you may need to manually inventory quantities. If a product is damaged, for instance, you’ll have to manually adjust the quantity. While QuickBooks Desktop tracks inventory quantities automatically, it supports manual adjustments as well.
Create an Adjustment Account
Start by creating an inventory adjustment account. You can use this account to track all of your inventory adjustments.
To create an inventory adjustment account, click “Company” and select “Chart of Accounts.” You can then create a new account by clicking the “Account” menu and choosing “New.” Under “Other Account Types,” choose “Cost of Goods Sold. You can then create a name for the account, such as “manual inventory adjustments.” Just remember to choose a descriptive name so that you can recognize it as the inventory adjustment account.
Make the Adjustment
Now it’s time to make the adjustment. With an inventory adjustment account set up, you can manually adjust inventory quantities. This is done by clicking “Vendors” and choosing “Inventory Activities.” You should see an option to adjust inventory quantity, which you’ll need to select to begin the process.
After selecting the option to adjust inventory quantity, QuickBooks will require you to enter some information about the adjustment. You’ll have to enter a date, for instance. In the “Adjustment Date” field, enter the date on which you want to record the inventory adjustment.
You’ll also have to select an account. Assuming you followed the steps listed above, you should have an inventory adjustment account. Click the “Adjust Account” menu and choose this account from the available list.
Inventory adjustments require an item. You’ll have to select the inventory item that you want to adjust. To select the inventory item, click “Find & Select Items.” After choosing it, click “Add Selected Item.”
Inventory adjustments are an essential part of accounting. If your business sells products, you’ll have to track how many product units it has. QuickBooks Desktop can track inventory quantities automatically. Nonetheless, you may need to make manual adjustments. Fortunately, QuickBooks Desktop supports manual adjustments as well. Refer to the steps outlined here to manually adjust inventory quantities in QuickBooks Desktop.
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