A Comprehensive Guide To Make QuickBooks Inventory Adjustment

QuickBooks inventory management is an essential task in the application that can help you to run your business smoothly if you deal in sales and purchase of the goods or items.

QuickBooks inventory management is an essential task in the application that can help you to run your business smoothly if you deal in sales and purchase of the goods or items. Using this function, you can manage your inventory and easily get to know your quantities on hand. In addition, when you make any sale or purchase, the inventory quantity gets updated automatically so that you dont need to put the undesired effort in manually entering them in the list. When you exactly know what your best selling product is, and what you need to reorder, you can maximize your business profits. This article discusses on QuickBooks inventory adjustment in details.

What Is QuickBooks Inventory Adjustment Account?

To manage your inventory values, you need to set up QuickBooks inventory adjustment account in your Chart of Accounts. To track your inventory adjustments, you need to create specific accounts for inventory management. Follow the below-given steps to set up an inventory adjustment account in QuickBooks:

Decide What You Want To Adjust

To make QuickBooks inventory adjustments, you need to be clear of what you want to adjust in your inventory adjustment account.

  • It can be making adjustments in Quantity on hand when you make regular sales and purchase of the products. Furthermore, breaking down of the inventory items also evokes the need for adjusting quantity on hand.
  • On the other hand, you may need to adjust the total value of the product that is calculated by multiplying the average cost of the product by its quantity in the stock. This value can be affected by seasonal damage or spoilage.

Set Up QuickBooks Inventory Adjustment Account

Now that you are clear what you need to track, you can create a dedicated account in the chart of accounts to track your QuickBooks inventory adjustments. Below are the steps to get the task accomplished:

  • From within the QuickBooks, go to the Company and then select Chart of Accounts.
  • Now select the Account drop-down list, and then further select New.
  • After that, select the Other Account Types drop-down menu and select Cost of Goods Sold.
  • Enter a name for this account, Inventory Adjustments and click Save and Close.

You may now easily track your QuickBooks inventory adjustment and be on the top of the orders. Once you are done with setting up QuickBooks inventory adjustment account, adjust your inventory and make sure that your inventory status is now accurate.

QuickBooks Inventory Adjustment Journal Entry

In the case of the inventory losses, you may not be able to track your inventory records efficiently. In this situation, you can avoid discrepancies in the QuickBooks inventory management system by making QuickBooks inventory adjustment journal entry. There are various instances when you may need to make a journal entry for QuickBooks inventory adjustment, as stated in the below-given list:

  • To depict the changes in the amount of inventory on hand as compared to the inventory remaining from the past year.
  • When the amount of the inventory on hand is different from one accounting period to another.

These entries must be reported on the companys income statement and balance sheet to avoid any discrepancies. You need to be very careful while making entries in the specific accounts. Making QuickBooks inventory adjustment journal entry can be perplexing sometimes, so you need to be very cautious while performing the procedure.

What Does QuickBooks Inventory Adjustment Cost Of Goods Sold Depict?

QuickBooks inventory adjustment cost of goods sold is an integral part of the QuickBooks inventory management system. When you set up the first inventory item, the program automatically adds two more accounts to the Chart of Accounts. These accounts are Inventory Assets and Cost of Goods Sold. COGS inventory value can be changed only when you sell inventory items on invoices or sales receipts.

Adjust QuickBooks Inventory With Expert Assistance!

In this article, you can find the steps to perform QuickBooks inventory adjustment. But if you are facing any technical unease and feel the need for talking to an expert, dont hesitate in dialing our QuickBooks error helpline number(855) 526-5749. On connecting with an expert, you can discuss your issue and get relevant assistance for QuickBooks inventory adjustment.