As a business owner, you must constantly alter your inventory once stock levels change. You may need to reduce your stock list to account for sold products or increase after a significant restock.
But to stay on top of all these stock changes, you need to know how to adjust inventory in QuickBooks Online to manage it better.
And that is why this blog post will teach you how to adjust inventory in QuickBooks Online and Desktop.
What is QuickBooks inventory adjustment?
QuickBooks inventory adjustment is the process of changing your inventory counts, whether to increase or decrease your stock list so that your records match your actual stock.
If you buy twenty units of a new product, you need to do a physical count and adjust your inventory to account for the latest stock.
If you’ve sold five batches of your products, you need to subtract these from your initial inventory items.
A Quickbooks Online inventory adjustment is necessary when:
- You have expired inventory.
- You experience a decrease in quantity/stock shrinkage due to clerical mistakes.
- You need to account for products used for promoting/marketing the business.
Inventory adjustment ensures you have a clear and accurate picture of the current inventory items. This helps you stay on top of customers’ demand and avoid under or over-stocking.
How to enter inventory adjustments in QuickBooks
You can add inventory in QuickBooks Desktop as individual quantities or total values.
Follow the steps outlined below for each procedure.
Adjust inventory values
Here’s how to adjust inventory value in Quickbooks Online Plus:
- Choose the Vendor menu option on your screen.
- Under Inventory activities, select the Adjust quantity tab from the Vendor submenu.
- Click Total value from the Adjustment type drop-down list.
- Enter the exact date you’re adjusting, then use the drop-down box to pick the specific account you want to track your inventory modifications.
- Make your changes in the Item column.
- Type the inventory item’s new value in the New value column.
- In the Memo area, enter the reason for the change.
- To save the change, click the Save button.
The date is crucial when using QuickBooks to adjust inventory on hand, as the item’s average cost is modified based on the date you specified.
Adjust inventory quantities
Follow these steps to learn how to change an inventory quantity in QuickBooks:
- On the web page tab, select Vendor, Inventory activities, then Value on hand.
- On the Adjustment type tab, choose Quantity. Here, you can either decrease or increase your product quantities.
- Enter the correct date when you’re adjusting. If you wish to track the specific quantity adjustments, select the tracking option under Adjustment account.
- Add the products you’re altering to the Item column.
- Enter the amount in the New quantity section if the item is brand new. If you want to change the amount of an item you already have in stock, enter the change under the Quantity difference field.
- Click Save.
When adjusting inventory quantities in QuickBooks Online, ensure that:
- The quantity difference has changed as per your alterations. For example, if you subtract two items from the stock list, the asset quantity should be reduced by the exact amount.
- You have the date right – with incorrect dates, you might adjust the wrong quantities.
How to adjust your inventory quantity or value in QuickBooks Desktop
If you don’t know how to adjust an inventory value in Quickbooks Online, you’ll likely end up with an inaccurate report valuation.
Here’s how to adjust inventory in QuickBooks the correct way.
Decide what details you need to adjust
You first need to decide precisely what details you want to modify, whether it’s the:
- Total value of your stock.
- Product quantities on hand.
Set up your inventory adjustment account
The next step is to set up an inventory adjustment account.
With this account, you’ll be able to track current and future inventory changes you make in your business.
Here’s what you need to do to set up the account:
- Click Company, then Chart of accounts.
- Select New from the Account option.
- Select Cost of goods sold from the lists menu of Other account types.
- Label the account with a name you can easily recall/identify, as this account will come in handy when adjusting any scrap inventory.
Adjust your inventory
To adjust your inventory on QuickBooks Desktop, follow these steps:
- Choose the location category from the list in the Location box.
- Select the Quantity on hand tab, then the Adjustment quantity.
- Enter the proper amount in the Adjustment quantity section. The adjustment unit is set to the item’s standard unit of measurement by default. You can change the value as needed.
- Do one of the following:
- To add the inventory modification to the table, click OK.
- To enter other inventory modifications, click OK and Add another.
- To reject all inputs and exit the pop-up window, click Cancel.
Make sure your inventory status is now correct
Review each inventory status report to ensure the new inventory levels and changes you made match the QuickBooks inventory on-hand report.
To do so:
- Click Inventory, then Reports.
- Choose the Inventory valuation summary to see the total value of your goods.
- Review the products you modified and ensure all the quantity adjustments are recorded.
- If you’re verifying the status of previous reports, FileImport inventory to access the records.
How to adjust your inventory quantity or value in QuickBooks Online
You can adjust the current quantity or value in QuickBooks Online by adding something new, editing, or deleting. Here’s how.
Enter an inventory quantity adjustment
Follow these simple steps to learn how to update inventory in QuickBooks:
- Choose + New.
- Choose Inventory quantity adjustment.
- Enter the date of the adjustment.
- In the Product area, choose the items. The description and current amount on hand are auto-filled.
- Enter a new quantity or quantity change for each item.
- If you have extra details regarding the modification, write them in the Memo area.
- Click Save and close.
Edit or delete an inventory quantity adjustment
If you want to know how to correct inventory in QuickBooks Desktop, follow the steps below:
- Pick a record from the Adjustment type drop-down menu.
- Choose Actions > Edit, or click the Edit button. The Edit inventory adjustment pop-up window will display.
- Change the adjustment quantity, units, and other entries you want to edit.
- Do one of the following:
- Click OK to add your edits to the database and exit the pop-up.
- Click Cancel to reject all inputs and exit the pop-up window.
If you’re constantly making significant quantity difference adjustments in a rush, you can end up entering specific values twice, which could lead to confusion later.
You must remove duplicate entries to make your stock company file less ambiguous.
Delete an inventory adjustment in QuickBooks Desktop by following these steps:
- Navigate to the Adjustment account and then select the New option under the drop-down menu that pops up.
- Select the Inventory section.
- Select the particular item to be deleted from the list. Here, you should select the Quick reports option.
- Select the date range by clicking on the All tab.
- Access the delete tab by right-clicking on the product.
- Press the Delete key.
If you’re running a large-scale business with different warehouse locations, each with a different inventory bin, doing a physical inventory count of your stock can be daunting.
Luckily, QuickBooks Desktop simplifies this process.
Using QuickBooks Desktop to make multi-lined inventory adjustments is relatively easy. But it can become challenging and time-consuming if you lack the know-how.
This is why you should consider connecting your QuickBooks Desktop account with Method:CRM.
Method:CRM has a diverse and efficient set of inventory adjustment features that allow you to batch-alter values on one screen, reducing the time and effort needed to make any inventory adjustment.
With Method, you can take charge of your inventory and get instant, accurate stock records of all your assets.
Watch this video to understand how Method:CRM can automate and simplify your business.
Adjusting inventory in QuickBooks FAQs
How do I adjust inventory entries in Quickbooks?
To adjust inventory in QuickBooks Desktop, you must navigate to the “Gear/tools” menu icon. Browse the “Products and Services” drop-down list, select the item you wish to change and click “Edit” in the Action column. Make your adjustments under “Quantity on Hand”, and hit “Save”.
What account should I use for inventory adjustment?
You should use the Inventory Adjustment Account to adjust stock.
How do I fix inventory problems in QuickBooks?
You can fix inventory problems in QuickBooks by reviewing the valuation summary report and zooming in on the items that have issues. Once you access the valuation report of each item, you can identify the exact error and fix it accordingly.
Sign up for a free trial of Method:CRM today!
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