Hi Loveleen D,

Thanks for joining us here.  As mentioned by Tammy_H, if you enter an inventory quantity adjustment, it will be recorded to your stock Asset and Cost of Goods sold (under stock shrinkage) accounts.  To ensure a positive outcome on your books, I recommend speaking with an accounting professional, for the best course of action.  If you don't have an accountant, we can help you locate a ProAdvisor in your local area.

Please feel free to reach back out, if you have other questions or concerns.  We'd be happy to help!