How to Adjust the stock on hand in QuickBooks accounting software?
Software: Intuit #QuickBooks accounting software
Stocktaking is an important task during the financial year end closing, you have to ensure the stock on hand value is correctly stated on the account. Should there be any discrepancy between the physical stocktake and the quantity or value stated in the QuickBooks accounting software, an adjustment to the inventory account is needed.
Before Stocktake, all stock related transactions have to be recorded. And during stocktaking, no movement of the stock should be allowed.
A Physical Inventory Worksheet can be printed from QuickBooks for the physical stocktaking. If there is any discrepancy, an adjustment can be made from the Vendor menu > Inventory Activities > Adjust Quantity/Value on Hand.
When recording an “Adjust Quantity/Value on Hand” transaction, select the relevant adjustment type. That is, either adjust the quantity only, the total value only, or both the quantity and total value at hand. Use the “Total Value” adjustment type if you need to revalue the inventory asset.
Adjustment date is the day you do the stocktake and the adjustment account is an expense account, which you capture the gains or losses from the stock adjustment. Next, click the “Find & Select items” button to select the item that has a discrepancy. Then, enter the new quantity from the Physical Stocktake Worksheet, which returned by your staffs. Lastly, save the stock adjustment transaction and check the relevant reports to confirm the adjustment.
The journal behind the inventory adjustment is debit/credit the Inventory Assets (other current asset) account and credit/debit the inventory adjustment (expense) account.