Quickbooks Online Inventory Adjustment - How to Adjust Inventory in Quickbooks Online
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- Опубліковано 17 вер 2024
- QBUniversity.org - This Quickbooks Online Inventory Adjustment video shows you not only how to adjust inventory quantity in Quickbooks Online, but also how to set-up a custom report so you can track your Inventory when you do counts.
I also discuss counting inventory best practices and introduce you to inventory cycle counts so that you do not have to count your full inventory so often.
Discover how to run your business better with Quickbooks Online and get 3 additional videos where I reveal the 3 most common mistakes Quickbooks Online users make at QBUniversity.org
Good job as always. I appreciate your teaching.
You’re welcome!
Is there a way to add the ENTIRE inventory list to the adjustment edit page or must each item be manually added to the adjustment list I have SO many inventory items askew very frustrating to have to add each item one by one.
Yeah actually, down below where it has the different lines, you can add multiple items
Thanks for the reply. What I was hoping was that you could import or drag and drop as I have about 700 items that needed to be adjusted. As I was very messy when setting up and running the inventory. I spoke with a QB Pro and they said QBO does not allow for spread sheet type adjustments but the Destop version does. I just finished the adjustments. But for what it is worth you, I suggest that you could create an adjustment feature that is easier to adjust multiple items than having to add each item individually.
Tiger Lily's House of Fish ah got it. Thanks so much!
When a product bundle is selected to create an inventory adjustment, are the associated products within the bundle adjusted?
yes they should be for sure
Hello. For some reason, my inventory qty is showing negative qty on-hand. Any suggestions what's the cause? My standard procedure is to create a PO, receive the PO by paying the bill, and then bill my client (at all times the same qty in and the same qty out). I don't want to do an inventory adjustment because the negative qty is over 1600 and that would be way too much a discrepancy to allocate the J/E to COGS. Thanks for the advance help!
When you say you receive the PO by paying the bill, do you enter the bill and enter the quantity purchased under the Items tab?
Loves your videos! So precise and to th point! Please verify these thoughts for me!
is inventory shrinkage legal write off as COGS on schedule C ?
How do I set up product deduction for personal use?
Thanks!
If it’s true shrinkage like it’s not there then yes it is. If it’s loss of value but you have not disposed of it then no it’s not. For personal use inventory, reduce inventory and show it as an owners draw instead of COGS
Why does most inventory adjustment create inventory shrinkage and again I have a friend who uses bills to create inventory adjustment.
Peter Nwa I guess because inventory typically gets overstated because of theft or other reasons?
I own a tree nursery. We purchase inventory from other vendors as well as propagate our own trees as well. Sometimes trees die and that can easily be updated in the quantity on hand with cost of goods sold. However, we also sometimes have to plant some of our inventory in larger pots (which of course makes it worth more money). We therefore have inventory of each available size. Though, when we do these plant size adjustments, what account would we want that reflected on? The inventory would essentially be switching from one inventory item (say 3 gallon Lemon) to another (say 7 gallon Lemon).
I really need help on this.
When I try to inactivate some items, it keeps recording them as Expense under inventory shrinkage.
I'm totally lost here why it's recorded as OUR expenses where I'm simply inactivating some items.
It does this because when you are saying it is inactive and you have a quantity on hand, you are essentially saying you do not sell these items anymore, thus adjusting the quantity to zero
@@mjhult So is there a way to just change the qty not effecting the report?
@@danskim7553 not that I’m aware of. But think about it, that quantity had to get in there somehow. If money was spent buying the inventory, and now it is being written off, then you would expense the cost of that inventory
If a client has been tracking inventory for 2021 but
now wants to get rid of that inventory for 2021 and
instead have all purchases (bills) go straight to
COGS and invoices to clients go straight to income
- how would you clean/ or make that adjustment in
inventory? The inventory Shrinkage account is also
being used. Background: Taxes have not been filed
and his company started in March of 2021.
This client wants to completely turn off inventory
tracking in Quickbooks Online.
Thank you in advance for the advise/ help!
In quantity adjustment, it picks prices from the last product purchase. how can i change the buying price in the time of adjustment without affecting the totals in the last bill created?
You wouldn’t be able to because you are adjusting the cost of the inventory. Since it’s based on what you paid for it this is the adjustment it makes
Sir, I always watch your videos. Very comprehensive and informative. Sir, is there any way to get only a negative inventory report instead of all inventory in Quickbooks Online? If yes, please explain. I highly appreciate it. Thanks.
You know I don't know off the top of my head and am not in front of QB at the moment, but I would pull up the report and see if you can filter it only for negative numbers.
@@QbuniversityOrg I understand Sir, please do it later whenever you are in front of the computer and let me know. I shall be grateful to you. God bless you.
How do you apply a Gost of goods inventory adjustment not cost of goods ??
Lokee Vapes im sorry im not quite sure what you’re question is?
Thanks for this info. Much appreciated.
You're welcome!
Great job, sir
Thanks!
What happens to the HST when you make an adjustment ?
When an inventory adjustment is performed, is a related journal entry created to adjust Inventory/COGS in the general ledger?
yep it sure is!
if we want to increase quantity the account will be what? Cost of goods sold?
Yep use cost of goods sold
Thank you
@@Abdullahalsabuj58 welcome!
Thanks for the video. I have a question - I entered my total sales for my Etsy Shop (say for November) as a journal entry but it did not include the itemized products (ex. $200 ) and now I need to adjust the inventory ( the $200 is made up of 4 supplies I sold - $50 each retail) will adjusting the inventory make it look like I sold more then I did? or in other words "double" revenue? hope that makes sense
It shouldn't if you are lowering the inventory amounts. When you lower the inventory it reduces inventory on the books and puts the difference to Cost of Goods Sold (you have to specify this as the Adjustment Account) - so it should increase your expenses
@@QbuniversityOrg thanks! Phew 😅 😂
@@brendafunari5719 you're welcome!
Sir, my second question is how do we adjust the negative inventory in Quickbooks online?
You would do an inventory adjustment just like I outlined in this video
I mean how to remove the negative cost of goods like tell the transaction which I am using JE like Cost of Good Dr with amount and inventory asset Cr like that or different way to let me know after make adjust show how the procedure become let us know sir it's very good if you make another Video
Thank YOU
Instead of a journal entry you would want to adjust inventory through the procedure in this video. By adjusting inventory values down you would increase COGS
@@QbuniversityOrg how would i increase the COGS if it negative let know sir
thank you
@@QbuniversityOrg for example when you are making inventory adjust quantity it shows -3 where is that -3 going thank you for your reply
thank you again
@@mohmttcaato5165 if you do a -3 adjustment it will reduce inventory and increase cost of goods sold. The $ amount will be based on the cost you enter in the Item list
Hi, how to increase prices for available inventory in Quickbooks?
Go into the Item List and change it. You can also
Change on the face of the invoice if it’s a one time increase
@@QbuniversityOrg hi, thanks for your kind reply. I m new to Quickbooks, hence could you please assist me the process flow for the same.
Further, this change should not be affected negative stocks
@@mohanrajj6788 go to your Item List and choose the specific Item you want to change. Open that Item and simply change the price
Hello. Thank you for the video. I was struggling with which inventory adjustment account to use. For increasing inventory counts do you still recommend using COGS or another account?
Lori Prust I would still use that same account. Thanks!
Thank you!
Lori Prust thanks!
Thank you !!!!!!!!!
You’re welcome!
Thank you so much for wonderful explanation. Sir, how do I make adjustments of inventory in QuickBooks online, if the inventory is negative because of not updating the inventory? I shall highly appreciate your reply. Thanks.
Uroos Punyali younwould use the same process as in this video
@@QbuniversityOrg Sir, should we follow the same process and adjust each item which is negative?
Uroos Punyali yep
@@QbuniversityOrg Sir, the company I work for is a wholesales business. they have never updated their inventory, and right now the inventory report shows $665,000 worth of inventory negative. it is impossible to go through each item to update and adjust the inventory. is there any way to make adjustment entries for the past and record the items of new purchases? please advise. Thanks.
Uroos Punyali you could do journal entries but it’s won’t affect the physical quantities in QB. Unfortunately to get the quantity and dollar amounts right you would have to go in and do adjustments to each one
Sir, how do I get the report for negative inventory in Quickbooks Online?
How do you adjust cost? I have the correct quantity but cost is off.
Marisol Wendland check the Item Cost in the Products and Services list. It could be input incorrectly there. Otherwise your inventory cost is established through purchases of inventory, so maybe some past inventory bills were entered wrong?
@@QbuniversityOrg Thank you! I've figured it out. You can't really change the cost from starting value, you just have to create a bill to change it moving forward. Thank you!
@@marisolwendland3149 awesome! You're welcome!
Thanks :))
Joe Dutch you’re welcome!