QuickBooks Online Inventory Adjusting The Quantity On Hand

In this learn QuickBooks Online Inventory course section, you will learn how to adjust inventory quantity on hand for special, rare or unusual situations. Normally, the quantity on hand of your merchandise will only change when you have a: sale, purchase or return. However, sometimes the physical count of inventory will change for things like: theft, casualty loss, spoilage, obsolescence or stupidity. You could even gain goods that you can make available for sale If you find or even if someone donates to you the product you sell. When you adjust inventory, the quantity will change in the inventory valuation detail report. The inventory asset account will change and the “balancing entry” for the other account that would change when adjusting inventory is called an “adjustment account”. It is usually an “other income” or “other expense” type of an account. This mean it will affect your net income but not your normal operating net income.
This QuickBooks KZbin Playlist will teach you every possible transaction type or issue that you could possibly have when managing merchandise inventory using QuickBooks Online. You will have total control over inventory quantities as well as your inventory work flow from purchases to warehouse storage to sales. All quantities will be tracked and all questions about non-inventory parts and 2 sided items will be answered. After watching this playlist, you will be able to guarantee that every aspect of your merchandise inventory records in QuickBooks Online will be correct to the last detail. You will master inventory reports and adjustments and always know what to do when receiving merchandise or selling the goods you trade.
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[@worldwidequickbooks]

Hello to all my friends using QuickBooks Online to keep inventory records! This QuickBooks help with Inventory video tutorial will show you how to adjust the quantity on hand of your inventory count without making a transaction that would normally change the quantity of your goods for sale. If you gain or loose merchandise for any other reason besides normal products sales, returns or purchases, then you need to make an inventory adjustment. This requires an “adjustment account” to balance the change to the inventory asset account. Usually this is a gain or loss type of account depending on the reason for the change in quantity of your products. I thank you all and hope that you will click “like” and “subscribe.

[@freesoul4eva]

Hi. Love your videos, they are very clear and straight to the point. I sell cashew nuts, I buy them in sacs of 5kg and sell them into different sizes after packing them in stand up foil pouches. I saw that Quickbooks enterprise has this manufacturing management, bill of materials, assembly... but I now woud not like to invest on it. I was thinking to use this adjustment in quantity. Can you please help on how I could do that? Say, if I buy 100kgs, and then assembly 20 packets of 250g, use 5kgs of cashews, 20 labels and 20 pouches. How can I take them out of stock, and then put them in inventory asseembled.

[@worldwidequickbooks]

Thank you but the quick books online version of the software does not come with unit of measure feature That's what you really need The desktop version comes with unit of measure where you can buy it in one unit and sell it in a different unit if you set it up properly If you would like me to give you the inventory playlist for desktop , please let me know Mark

[@jimmyallen0681]

Currently in QuickBooks Desktop, we use "Adjust Quantity/Value on Hand" to adjust the inventory quantities and values at the end of every month (under Mfg & Whsle, Inventory Activities, Adjust Quantity/Value on Hand). Then for the "Adjustment Type", we choose "Quantity and Total Value" since we use more of a weighted average cost to value our inventory (see attached screenshot showing the page we use to make the adjustments). On the Online Advanced test drive, we found where you can adjust the inventory quantities, however we can't figure out how to adjust the values as well. Are we looking in the wrong spot? Or maybe there's some setting we can change so that we can adjust the values too?

[@worldwidequickbooks]

Thank you, but only the desktop version can change both the quantity and the value.The online version only has the change in value available at least for now There are always some features that the desktop has that online does not have advice versa If you click on the top right corner of this video you'll get the entire inventory playlist If you watch it in proper order , you will have Everything you need regarding quick books online inventory and I only ask that you remember to click Like after watching each 12 help support the free channel for everyone and please subscribe Mark

[@reikosimon6610]

Hello, thank you for very helpful videos. I wonder if there’s any way to do QB entry when we sell existing inventory item in parts. We purchased it with price in whole, but would like to break down prices to a couple of components to sell . But some parts are not sellable so will remain in inventory. Inventory adjustment seems only allow us to use income & expense account, so I think I can't use this to "increase" as new inventory as we did not "buy" new items. I would appreciate your input.

[@worldwidequickbooks]

Thank you and you are correct Quickbooks desktop would be better if you have merchandise inventory and need to keep track of continuous quantities at every stage The reason why desktop would be better when you're a particular case, is because, only desktop has "unit of measure". That's the feature you need. If you do the inventory adjustment and quick books online, that means you will have to make an adjustment every single time you purchase inventory to convert the unit of measure from what you purchased it as and change it into what you sell it for. You should go call QBO support Because they might know of a "add on app" that you could add to your quick books online that would allow you to do the same unit of measure that desktop already includes If you find a good app that works, please let me know and maybe I'll make a video for it. Mark

[@scottlippman4046]

Question: I create a SKU. I enter the qty I am buying so I can track as I sell. But when I then received the bill for the goods, it doubles the amount in my inventory. I then need to go back and adjust starting inventory to zero. Any other way around this? Make starting value Zero, use PO so show's on PO qty? But still need to track so I do not sell more than I have but bill for goods often does not arrive until after the sale has happened?

[@worldwidequickbooks]

Thank you for your question Although I don't fully understand what you're asking and what's going on with you, I'm absolutely sure that if you watch the playlist from start to finish then whatever issue you have will be addressed. You can get the link to the full playlist by clicking in the top right corner of the video as it is running. You could also open the description field and look under the 1st paragraph to see the link to the whole inventory playlist for quick books online. It's important that you watch the videos in the proper order to understand the context and that it is very likely that if you patiently watch the videos, you will come across the issue that is causing you a problem. If the videos do not help then send me an email and we can arrange for a private session through zoom Worldwide quick [e-mail] No spaces Mark

[@uroospunyali8861]

Very useful video. Thank you, sir. Would you please tell us how do we record negative inventory in QB Online? The company I am working for is a wholesales business. the company has never updated the inventory for over two years. Therefore, over half a million dollars of inventory shows negative in the balance sheet, which reflects on net income and shows negative too. The physical inventory right now is $ 1.2 million, which was impossible to record each item, therefore, I have made a journal entry of the amount. Sir, I need to know, is this the right way to make a journal entry for total inventory? and also how do I remove or adjust the negative inventory. Please help me. I shall be indebted to you. Thanks.

[@worldwidequickbooks]

Do exactly what this video shows. You should adjust to make the physical count match the quickbooks records. That's the reason for this video. Your challance, is finding the REASONS WHY the differenct is so big. Why did it go negative. If you know that, then you know the name of the inventory "adjustment account" and record it like you see in the video above. -Mark

[@pravindesai49]

Hello. I use QuickBooks Online Essentials 2021. How do I record Ending Inventory (Dollar amount) in the first year end Balance Sheet and then transfer that amount as Beginning Inventory in the second year income Statement and also record Ending Inventory in that second year Income Statement. Assume it is a physical count of inventory in dollar amount.

[@worldwidequickbooks]

Thank you for asking. I think you mean that you are using the "PERIODIC" inventory system instead of the "perpetual" system. If you click in the top-right of the video you will see the link to the full playlist. You could also get the link to the full playlist in the description field under the first paragraph. There are videos twards the end of the playlist. look at the titles and if you cannot find them let me know. -Mark

[@kencloudable4048]

Hi, I've inventory balance of $15000 in my balance sheet, however, my products and services list only has $11000 in the report. How do I adjust this?

[@worldwidequickbooks]

It all depends on what caused that problem. That condition should not exist so you have to figure out why. If you click in the top right corner of this video you will get the link to the full inventory playlist and if you watch it in proper order it. Should reveal everything you need about inventory and it should fix your problem It's the videos do not help,and I'm sure they will,. Then you can re ask your question and I'll try to help figure out what's going on. Mark

[@mohanrajj6788]

Hi, how to increase prices in % for available inventory in Quickbooks? Eg: current stock value $1 Million, Increasing Price 5%, after price revision the value should be $1.05 Million. Price revision don't apply for negative stocks. Could you please assist me accordingly.

[@worldwidequickbooks]

That's absolutely not how things work and there would be no situation where you would do that You have to record the inventory at the amount that you paid for it, the amount that you want to charge for it has nothing to do with the amount that you already paid for it so what you're asking to do would never happen for any rational reason

[@ರಾಜ-ಶ7ಬ]

iam facing inventory negative in balance sheet i want to make it zero but it should not effect anywhere in books like p & L or anywhere plz help urgent

[@worldwidequickbooks]

Do what is shown in this video and make the "adjustment account" the "opening balance equity" or some equity account. That's the way to fix it if you do not want the inventory adjustment to effect the p&L. It's also how you would set up the begining quantity on hand. -Mark

[@travishuisman1817]

I wouldn't recommend inventory adjustments going to other income or expense when they are operational. Spoilage/shrinkage and many other adjustments are operational in nature and should affect cost of sales.

[@worldwidequickbooks]

Thank you Travis, You certainly could do it that way. While the main point of the video is to show the functionality of the adjustemnst feature, you can decide in your situation what account and account category to make the adjustment. Wether it's operational or not will depend on the company GAAP and audit standards; that's company by company -Mark

[@travishuisman1817]

@@worldwidequickbooks Thanks for the reply Mark. I do recognize that wasn't the main point of the video. I appreciate the video. I am having a crazy issue where when I post an adjustment it creates two lines in the valuation detail for the item...a positive and an offsetting negative (or vica versa) adjustment, resulting in a zero adjustment.

[@dorianb2070]

@@travishuisman1817 I am having that exact same issue. My balance sheet doesn't match my inventory valuation summary because it's making this negative and positive entry.

[@dorianb2070]

@@travishuisman1817 I just thought I would share the solution to this in case you never solved it or someone else finds this. For us, the issue was that the account we were using to book the inventory adjustment was also an inventory account. We needed to book inventory in transit (that client was billed for but not received) so we set up an in transit account. It has to be a Asset>Other Current Asset to show on the balance sheet but to not be part of inventory. Otherwise you get the double entry. That is what solved it for us!

[@travishuisman1817]

@@dorianb2070 Thank you. Our solution with adjustments was that your adjustment account HAS to be on the P&L and cannot be on the balance sheet.

[@judithannebdalin4850]

hello po i need your help my inventory level record is negative, can you help me please

[@worldwidequickbooks]

Yes just physically count how many you have and make the same adjustment that's in this video and then everything will be fine

[@imshangu1786]

Thank you sir for such informative videos. Let me add something for fun. I wish someone could gift me 2 crates of banana for my next birthday, so I could make other income 😂 Best regards Shoaib from Pakistan 🇵🇰

[@worldwidequickbooks]

Thank you so much for watching and to being a loyal fan and I hope you will click like after watching each one to help support the free channel for everyone. And please subscribe Mark

[@imshangu1786]

Sure sir!