Hello there, @matthew-kapes-co.
It's a joy for me to assist you in sharing inventory adjustments information in QuickBooks Online (QBO).
Once you’ve inactivated or deleted items on your QBO account, when creating an inventory adjustment, QuickBooks automatically creates the Inventory Shrinkage account. This is how QBO works and it is part of the QBO feature.
Since you no longer track inventory, you can make a journal entry to remove the object from your book:
- Click the + New.
- Choose Journal Entry.
- Enter the necessary information.
- Click Save.
I also recommend consulting with your accountant, who can advise you on which technique is best for your particular books.
You can refer to frequent asked questions (FAQ) about inventory management. Check out Quick-Look FAQ: Inventory Management.
If you have any other inventory-related queries, please leave a comment below and I'll do my best to assist you. I wish you the best of luck!
