Hello there, @Jdch17.
You can create a separate account in your Chart of Accounts to modify the quantity on hand and the total value.
Here’s how:
- Go to the Company menu, then Chart of Accounts.
- From the Account dropdown, choose New.
- From the Other Account Types dropdown, select Cost of Goods Sold.
- You can name this Account as "Inventory Adjustments," then click Save and Close.
For additional information about the adjustment process, check out the Adjust your inventory quantity or value in QuickBooks Desktop article. It also contains detailed instructions on how to create a separate account to track changes with the quantity or value.
I’d recommend consulting with your accountant for the best action to take. Your accountant can give you expert advice on recording it while ensuring your accounts stay accurate.
For future reference, read through this article to learn more about inventory assets and COGS: Understanding inventory assets and cost of goods sold tracking.
Let me know if you additional questions. I'll be around to help. Stay safe.
