To make an inventory adjustment

1. Go to the Sales menu > Items.

2. Click Adjust inventory.
   

3. Enter details of the adjustment.
   

   A	The Inventory journal number appears by default. You can change this is if you want, as well as the date of the adjustment. You can also enter a description of the inventory adjustment transaction.
   B	Choose the Item ID of the item you want to adjust (inventoried items only). The name and the current on-hand quantity of the item appear. To find an item, you can start typing the item number or item name into this field.
   C	Once you choose an item, its Current quantity is shown here.
   D	In the Adjustment column, enter the quantity by which you want to increase or decrease the quantity held. Only enter the quantity variation. Enter 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. When you enter the adjustment: the New on hand column displays what the on-hand quantity of the item will be after recording the adjustment the Unit cost of the item appears by default. This 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 the Amount field displays the value of the adjustment.
   E	Choose 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	If the item is related to a job, choose the Job.
   G	You can add a description of the adjustment line in the Memo field.

4. Click Record adjustment to save the inventory adjustment.

Here's how you can view any inventory adjustments you've made:

1. Go to the Banking menu > Find transactions.
2. Choose the Period you want to view inventory adjustments for.
3. For the Source journal, choose Inventory journal.
4. (Optional) If you're on the Debits and credits tab, you can choose the Account you assign your inventory adjustments to.
   

Examples of inventory adjustments

The following are some examples of inventory adjustments.

Example 1

This inventory adjustment increases the number of items on hand by two and the total value of the items on hand by $700.

Example 2

This inventory adjustment decreases the number of items on hand by one but does not change the value of the items. The average cost of the items will increase as a result of this adjustment.

Example 3

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.

Example 4

This inventory adjustment decreases the total value of the items on hand by $20 but does not change the number of items on hand. The average cost of the items will decrease as a result of this adjustment.

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