How to Adjust Inventory in QuickBooks 2010 - dummies

How to Adjust Inventory in QuickBooks 2010

You can store inventory numbers in QuickBooks 2010. In order to record changes to inventory, you periodically physically count your inventory and then adjust your QuickBooks records with the results of your physical counts.

1Select the Adjust Quantity/Value on Hand command.

This command is available to you in two different places. If you display the Item list, click the Activities button (which appears at the bottom of the Item List window) and select Adjust Quantity/Value on Hand from the pop-up menu that appears. You can also choose Vendors→Inventory Activities→Adjust Quantity/Value on Hand.

Choosing either command displays the Adjust Quantity/Value on Hand window.

2In the Adjustment Date text box, enter the date of your physical count.

In other words, you want to adjust your quantities as of the day you took or completed the physical inventory count.

3From the Adjustment Account drop-down list, select an expense account.

Choose the account that you want to use to track your inventory shrinkage expense.

4(Optional) Identify the customer or job, and the class.

If it’s appropriate, select this information from the Customer:Job text drop-down list and the Class drop-down list (which identifies the class that you want to use for tracking this inventory shrinkage).

5In the New Qty column, provide the correct physical count quantity of the item.

After you’ve entered the new quantity, QuickBooks calculates the quantity difference and shows this value in the Qty Difference column.

Alternatively, you can enter a value in the Qty Difference column to make QuickBooks calculate the New Qty.

6(Optional) Select the Value Adjustment check box.

QuickBooks displays an expanded version of the Adjust Quantity/Value on Hand window.

7Enter the physical count quantity in the New Qty column and the new updated value in the New Value column.

You probably use this version of the Adjust Quantity/Value on Hand window only if you’re using a lower-of-cost or market inventory valuation method. For example, both financial accounting standards and tax accounting rules allow you to mark down your inventory to the lower of its original cost or its fair market value.

8If you want to further describe the quantity or value adjustment, enter it in the Memo text box.

For example, you may want to reference the physical count worksheets, the people performing the physical count, or the documentation that explains the valuation adjustment.

9Click either the Save & Close button or the Save & New button to save the adjustment transaction.

Save & Close saves the transaction and closes the window. Save & New saves the transaction but leaves the window open in case you want to make additional changes.