Hi @accounting-ygpso,

I did make sure we are on the same page by recreating your situation base on how you describe it.

Yes, the Inventory Shrinkage account will still show up with a negative amount on the Profit and Loss report even after making it inactive. The negative amount is the total cost of the adjustment made and it does not affect the whole total of your Profit and Loss report.

If you're still unsure with the figures of your report, I recommend contacting your accountant for assistance. They can help you understand how each amount of the accounts determine the total figures of your report.

If there's anything else that I can help you with, please let me know in the comments. Stay safe!