Note: This is assuming your inventory/purchase orders function is active in QuickBooks and you already have an inventory list created with quantities that need to be manually adjusted, perhaps due to a physical count of the inventory.

  1. Go to your inventory list in QuickBooks
    1. List>Item List
  2. Scroll to find the inventory type item that you want to manually adjust the quantity of and make note of it.
    1. Be sure the item type is “Inventory Part” or “Inventory Assembly”.
  3. Now move your cursor to the menu at the bottom of the Items List screen.
    1. Within the bottom menu list, click on the Activities menu and choose “Adjust Quantity/Value On Hand”.
  4. Within the new screen that opens, find your item by either clicking on “Find & Select Items” or just simply click on the Item field and start typing in your item.
  5. Once you choose your item you will see its description and Quantity on Hand information populate.
  6. Before you type in the new Quantity On Hand underneath “New Quantity”, you first should do the following:
    1. Go to the top of the screen and select “Quantity” next to Adjustment Type.
    2. Select an appropriate date next to Adjustment Date:
      1. You may need to refer to an Accounting specialist here so you don’t accidentally choose a date that will alter a previously closed accounting period.
    3. Perhaps the most important field is choosing an appropriate account next to Adjustment Account:
      1. Again, you may need to refer to an Accounting specialist as this will be the account that will get affected in your financials (other than the Inventory Asset account) after you complete this quantity adjustment.
    4. Reference Number, Customer Job and Class are optional fields.
  7. Now go to the New Quantity field and type in your new quantity. Once you do this, you will now notice some things:
    1. Perhaps the most important is the “Total Value of Adjustment” which is now noted at the bottom right of the screen.
    2. The NEW quantity on hand, average cost per item and NEW value of your item stock status is displayed on the bottom left of the screen.
    3. All of this information will be in effect once you “Save”.
  8. Click Save & Close.
  9. Process an Inventory Stock Status report and a Profit & Loss report to ensure all of the correct financials were affected by your entry here.
Share This Post: