23 Nov Physical Inventory Counts
Physical Inventory Counts
Using proper procedures should eliminate the need to make most quantity or value changes. There are several situations, however, that will require modifying the item through an adjustment:
· Actual physical count
· Write off of old or obsolete inventory
· Period End adjustment to another inventory method (i.e. LIFO, FIFO, etc.)
The first step is typically to count the items on hand and compare that information to what is on the computer. The default report includes the quantity, however, for internal control purposes it is usually best to remove that column by placing the cursor on the diamond to the right of the column, then, with the mouse button depressed, move the diamond past the column. When the mouse button is released, the column will disappear. The preferred vendor may also be removed if it does not include any information that will make finding the item any easier. The item description column can be made wider by placing the courser on the diamond to the right of the column, and dragging it to the right.
QBRA-2003: Reports > Inventory > Physical Inventory Worksheet
Once the actual count has been completed, the inventory quantities can be adjusted through QuickBooks by using the adjust qty/value on hand option. Keep in mind the ending count is being entered as of the date at the top of the screen and the software will compute the difference with the value adjustment based on the average cost of the item.