Thank you for taking the time to read this. I manage a dog boarding kennel. We purchase large amounts of dog food. Most of it we use in the kennel. I keep inventory so I know when to purchase more. It is already an expense when we pay the bill. Sometimes clients purchase a bag, so rightfully, that decreases the inventory. But as I decrease (inventory adjustment) the inhouse use it adds it to my sales. How do I do a correct inventory adjustment? Please let me know if you have any questions to further explain.