Скачать или смотреть 16. Adjust Quantity on Hand

Adjusting Quantity on Hand in QuickBooks is simple once you know where to find the form. In this lesson, I show you how to make a Quantity on Hand adjustment in just a couple of minutes.

Alternate navigation:
Go to Lists → Item List → Activities → Adjust Quantity/Value on Hand, then follow the steps shown in the video.

Handling Damaged Inventory
When you buy inventory, QuickBooks posts it to your Inventory Asset account. Each Inventory Item is linked to three accounts:

Inventory Asset

Income (Sales)

COGS (Cost of Goods Sold)

Posting a purchase increases Inventory and increases your credit card or liability account.

Basic Accounting Behind the Scenes
Purchase of Inventory (credit card):

Debit Inventory (increase)

Credit Credit Card (increase liability)

Selling Inventory:

Debit COGS and Cash/AR

Credit Sales and Inventory
(COGS appears when the item is sold and an invoice is created if you use Cash Basis.)

When Inventory Is Damaged
Damaged items should be removed from Inventory and posted to an Expense. Think of this as a normal cost of doing business. You can create an expense account such as Damaged Inventory: Amazon to track these losses.

To adjust:
Go to Vendors → Inventory Activities → Adjust Quantity/Value on Hand, choose the damaged item, and select an Expense account in the adjustment window.

If you select an Inventory account instead, QuickBooks will warn you. Most adjustments use an Income or Expense account unless you are only correcting quantity.

Customer Returns
If a customer return is not truly damaged and can be resold, your Credit Memo already reversed the sale and returned the item to Inventory.
If the item is damaged when it arrives back to you, make an Inventory Adjustment to remove it and expense it.

Correcting Posting Errors
If your inventory count is off because of a listing or variation error (e.g., wrong color billed out), use the same Inventory Adjustment window:

Add quantity to the correct item

Subtract quantity from the incorrect item

Use two lines in the adjustment. The net effect should be zero if the items have the same cost.

Fixing Incorrect Past Adjustments
If you previously created an Inventory Asset sub‑account instead of using an Expense account for damaged goods, go back to those adjustments and change the account to the correct Expense. This will:

Reduce quantity on hand

Reduce Inventory Asset

Record the proper expense

COGS should not be used because nothing was sold.

If you don’t correct this, your Balance Sheet will continue to show inventory that no longer exists.

About Contra Accounts (Optional Concept)
A contra account is an account with the opposite normal balance (e.g., a credit‑balance Inventory Asset). Some people use a contra account to record damaged inventory, but I prefer expensing it directly. If used correctly, a contra account will still show the correct total on the Balance Sheet, but it’s not necessary for most sellers.