23 Nov Adjusting Inventory Overview
Adjusting Inventory Overview
QuickBooks tracks the quantity on hand and the average cost for inventory items. These amounts are adjusted automatically as items are purchased and sold. For this reason, the perpetual inventory balance in QuickBooks should be accurate. There are times, however, when it is necessary to adjust the balances. The reason may be data entry error, lost, stolen, or damaged items that are no longer salable, etc. Inventory values may need to be adjusted to properly reflect a cost basis other than the moving average calculated by QuickBooks.