The Adjust tab on the Inventory page allows you to adjust the quantity and cost for items you have in stock
You may need to adjust inventory for times that are broken, lost, or have depreciated in value. Here is how you can make adjustments to the amount and cost of items in your inventory.
1. Go into "Projects" and select "Inventory"
2. Find the product you wish to make an adjustment for and select the pencil icon labeled "Edit"
3. In the edit window for your product, select the "Adjust" section located near the top
4. In the "Adjust" section, you can record changes for your records when making reports and documents. The following areas are available to record your changes in "Quantity", "Merchandise Costs" and "Other Costs".
If you need to reduce the cost or quantity, enter a negative number.
If you are adjusting to account for an item that is no longer in your inventory, make sure to adjust both the quantity AND cost for the item.
After entering the adjustment amounts, you can select the "Adjust Inventory" button to apply these changes. Don't be alarmed when your values revert to "0"!
5. You can select the "History" tab next to "Adjust" to see a record of the adjustments you have just made.
6. When returning to the "Inventory" tab, you can also see updated information based upon your adjustment changes as well under your product image. These updated adjustments will appear in your reports and journals when creating them for your reference.
Moving Cost From Inventory Adjustment
When you make an inventory adjustment to Merchandise or Other Costs as described above, an entry will be made on your general ledger to adjust the cost on your Inventory account.
For example, if you made a -100 adjustment to Merchandise Costs for an item, your Inventory account will be credited -100 and your Inventory Adjustment account will be debited 100.
If you want to report the adjustment on another account, you can create a journal entry by following the steps here and making an entry to your Inventory Adjustment account: Creating Journal Entries
You should consult with your CPA on the best account to use for this adjustment.
Writing off or Donating Inventory
If you want to write off or donate inventory, follow the steps above to adjust off the quantity and cost of the inventory.
Then create a Journal Entry by following these steps: Creating Journal Entries
When creating the journal entries, you will have to credit the Inventory Adjustment account and debit the account you want to record the write-off or donation to. You should consult with your CPA on the best account to record these adjustments to.