Adjust Inventory in QuickBooks

If your business involves any type of inventory, whether a huge amount or just a few items, the inventory needs to be tracked. You or your bookkeeper can use QuickBooks for storing inventory information and also for adjusting inventory counts and values based on the current market. You most likely count your inventory on a regular basis and any changes should be recorded in your financial records. You don't want to have to pay taxes on inventory that you don't have; therefore, you should always take a regular count and adjust your records as necessary. With QuickBooks, it is a very simple process to make these adjustments.

Steps

1. Select "Lists" or "Vendors."
2. Select "Items" under Lists or "Inventory Activities" under Vendors.
3. Select "Adjust Quantity/Value on Hand" in the drop-down list under either Lists or Vendors.
4. Enter the date that you made your physical count of your inventory.
5. Select an expense account (an inventory item) from the adjustment list you opened up. This is the account you selected to track your inventory decline.
6. Identify the customer job and class, if applicable, from the drop-down list.
7. Type in the new physical count in the column named "New Qty" or enter a new value in the "Qty Difference" column and QuickBooks will calculate the adjusted quantity for you.
8. Check the box named "Value Adjustment" if you want to see an expanded version of the open window; however, this is not necessary to change or adjust your inventory.
9. Enter the new count in the "New Qty" column if using the expanded method for value adjustments. This allows you to mark down the items as the market value decreases.
10. Use the "Memo" text box to write a short description or note to describe what you've done, who was involved in counting inventory or other notes, if necessary.
11. Click the button marked "Save & Close" or "Save & New" to record your revisions.

Tips

• It is always a good idea to keep accurate inventory records and take inventory of your supplies on a regular basis, such as once each month. You are required to pay taxes on inventory each year so you always want to have not only an accurate count, but an accurate value as well. You are allowed to record the lesser of your purchase price or fair market value of your inventory items so be sure that you take advantage of this when keeping your books and doing your taxes.
• Tracking your inventory is also a good way to keep abreast on your sales and ensure that sales records are accurate. If you have too much or too little inventory according to sales receipts, you may be able to track the discrepancies and make the necessary adjustments. It may also help you find out whether there was any theft of your merchandise.

Things You'll Need

• Home or office computer
• QuickBooks software or online QuickBooks service
• Inventory records including personnel who performed the count, date and counts
• Calculator (optional)

Related Articles

• Use QuickBooks for Inventory
• Adjust Inventory

Sources and Citations

• http://www.dummies.com/how-to/content/how-to-adjust-inventory-in-quickbooks-2010.html
• http://aspirantbookkeeping.com/how-to-adjust-quickbooks-inventory/
• http://support.quickbooks.intuit.com/support/pages/inproducthelp/Core/QB2K11/ContentPackage/Core/Inventory/task_qoh_adjust.html

See also

• Pay Independent Contractors in Quickbooks
• Use QuickBooks for Inventory

What links here

• Become QuickBooks Certified
• Maintain Inventory Accuracy
• Use QuickBooks for Inventory