In this article you will learn how to adjust the quantity or total value of your products in QuickBooks Desktop. To know more, contact QuickBooks Desktop Support.
As you track every purchase and sale, QuickBooks Desktop updates inventory quantities and value. To keep your inventory status in QuickBooks accurate, you might need to record an adjustment every now and then.
Do not fret, if you’re unsure how to do this. We are there to help you in learning what kind of adjustment you require and how you can create it.
Please Note: You can use this method if you don’t have to return an assembly’s parts to your inventory and just need to adjust your stock of finished goods. Find below what you can do, if you need to “un-build” any assembly item and return components to inventory.
Step 1: Firstly, you need to decide on what kind of adjustment you need
When should you adjust the quantity on hand QOH.
From time to time, adjusting a product’s quantity is normal. Any kind of decrease or increase in product quantity that does not because of a sale or purchase can be tracked tis way. For instance, after doing an inventory count you find fewer or more of an it or when it breaks.
When should you adjust the total value?
The average cost of the product multiplied by its quantity in stock is the total value of the product. This value can be affected by things like seasonal demand or spoilage.
Pro-Tip: Before you adjust inventory value, it’s best to reach out to your accountant for advice. We can help find one near you if you don’t have an accountant.
Step 2: Setting up your inventory adjustment account
- To track your adjustments, create a separate account in your chart of accounts.
- Click on Company and then select Chart of Accounts.
- Click on the Account dropdown, and then select New.
- Select Cost of Goods Sold from the Other Account Types dropdown.
- Give a name to this account “Inventory Adjustments”, and then click on Save and Close.
Step 3: Adjusting your inventory
- You can adjust a product’s quantity, value, or both once you set up your adjustment account. Find the steps below.
- Click on Vendors and then select Inventory Activities. Now, select Adjust Quantity/Value on Hand.
- From the Adjustment Type dropdown, click on the following: Quantity, Total Value, or Quantity and Total Value. Choose the adjustment type option and then click on your adjustment account.
- Enter the date of Adjustment.
- From the Adjust Account dropdown select the adjustment account you set up.
- Now, you need to add Reference No. and can assign a customer, job, or class.
- Click on Find & Select Items. Choose the items that you wish to adjust. Search for any product in the Find field if you have a lot.
- Click on Add Selected items.
- For each item, add a new quantity or new value (or both). Pro-Tip: While recording a quantity adjustment, it helps to check the quantity difference. If you’re recording a decrease in quantity the difference should be negative. It should be positive if you’re recording an increase.
- Click on Save and Close.
Step 4: Ensure that your inventory status is now correct
- You need to now take a look at your inventory status reports and ensure that everything looks good.
- Click on Reports and then select Inventory.
- Select the Inventory Valuation Summary to check your product’s value. Select the Inventory Stock Status by Item to check your product’s quantity.
- Now, take a look at the items you have adjusted and ensure that everything is correct.
To know more on learn how to adjust the quantity or total value of your products in QuickBooks Desktop, call us on our QuickBooks desktop support number. You can also write to us at support@quickbooksupport.net. For more information visit – www.quickbooksupport.net .