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From time to time you may need to adjust item quantities and values. For example, if your inventory gets damaged, you may have to write off some of your inventory or revalue it.
This section explains how to make an adjustment to a single item or a few items. If you need to update the quantities of several items, see Recording stocktakes.
For examples of common inventory adjustments, see below.
When making inventory adjustments, you may find it useful to print the Items List Summary report. This report displays on-hand quantities and values of your items.
To make an inventory adjustment
Go to the Inventory command centre and click Adjust Inventory. The Adjust Inventory window appears.
Enter details of the adjustment.
A Select the item you want to adjust. B Type the quantity by which you want to increase or decrease the quantity held. Only enter the quantity variation. Type the quantity in inventory units, not buying or selling units. If you enter a positive number, that number is added to your on-hand inventory. If you enter a negative number, that number is subtracted from your on-hand inventory. C The unit cost of the item appears by default. The unit cost is calculated as the total cost of the item divided by the number of units on hand. If these are new items, enter their purchase cost. D The Amount field displays the quantity multiplied by the unit cost. If you change it, the unit cost is recalculated automatically. E Enter the account you want to assign the adjustment amount to. If you’re reducing the inventory value, this account is usually a cost of sales or expense account. F Select whether you want this adjustment to be allocated as an end-of-year adjustment. End-of-year adjustments can be excluded from your financial reports.
Click Record to save the inventory adjustment.
Examples of inventory adjustments
The following are some examples of inventory adjustments.
This inventory adjustment increases the number of items on hand by two and the total value of the items on hand by $700.
This inventory adjustment increases the number of items on hand by two but does not change the total value of the items. The average cost of the items will decrease as a result of this adjustment.
This inventory adjustment increases the total value of the items on hand by $120 but does not change the number of items on hand. The average cost of the items will increase as a result of this adjustment.