Comments on: QuickBooks Inventory Quantity and Value Adjustments

By: Charlie

Charlie — Mon, 08 Feb 2010 16:48:25 +0000

Teya, I can’t give you s specific answer. The question is “why is it negative”? Is it because you haven’t been receiving the item correctly? Is it because you have some sort of problem with theft, loss, poor quality, scrap, or what?

By: Charlie

Charlie — Mon, 08 Feb 2010 16:45:42 +0000

Diana, I don’t know that Dan was using an outside program (didn’t see that reference) but there are several available. HOWEVER, please note that these are all (to my knowledge) fairly expensive programs, more expensive than QB itself. And some require that you use Enterprise…

For the adjustment question, if you are removing an item for marketing purposes and you want to use an adjustment, do NOT click the “value” box. You don’t want to adjust the average cost of the items, you just want to expense out that one item. Pick an account to post to that is something like “promotional expenses”. A regular adjustment will remove the cost of that item from inventory asset and post it to that expense. It will NOT adjust the average cost of the remaining items. That would be the typical approach to take.

By: teya steffens

teya steffens — Sun, 07 Feb 2010 20:15:14 +0000

how do i setup the inventory adj account. i have enventory with a negative number and i need to fix . it ask me for and income or expensive account.? ok, need help.

thanks

By: Diana

Diana — Sat, 06 Feb 2010 19:12:19 +0000

I have lets say 10 bags (build in my inventory). I am giving away 1 bag for marketing purposes. What is the best way to process this transaction in 2009 mfg premier QB? Do I adjust quantity by 1 and click ‘value’ as well since the value of my inventory will be reduced by the cost of that 1 bag, OR just leave the value box along and adjust quantity by 1? It is my understanding though that the average cost of other 9 bags will increase if I do not use value adjustment box. Thank you.

By: Diana

Diana — Sat, 06 Feb 2010 18:37:52 +0000

I am designing handbags and producing it by using subcontract labor. Dan mentioned that he uses a 3rd party program that helps him to track inventory, cost of the item, etc. What is that program? I would like to try one. I have 2009 Mfg Premier, and thinking of trying to keep very detailed inventory outside of QB.Thank you.

By: Charlie

Charlie — Thu, 04 Feb 2010 16:24:12 +0000

Inkhy: That is a bit off topic, and comments in a blog article like this aren’t a great way to answer those kinds of questions. There isn’t a great answer for multiple warehouses without using an add-on product. You can use “subitems”, where you create an item “warehouse A” and “warehouse B” and then assign items under that. Then you can use adjustments to move items from one to the other. That might not work in all situations, though.

By: inkhy

inkhy — Thu, 04 Feb 2010 09:17:13 +0000

I have a several questions. We are currently using Quickbook program. I am facing following problem. Can you give me suggestion? Our inventory items are locating in different places. In other word, we have several warehouses. How can i use Quickbook for moving items from one warehouse to the another? And if one warehouse sell our item, how we should enter sales receipt?

thank you

By: Charlie

Charlie — Tue, 02 Feb 2010 17:23:34 +0000

MNHarun, I’m not an accountant, so I’m not sure what the best would be. Also, accounting practices as far as costing (etc.) of these kinds of resources are usually governed by laws in your country – and will vary from one country to another. This kind of thing is way over my head. Sorry…

By: MNHarun

MNHarun — Tue, 02 Feb 2010 12:20:44 +0000

Hi (excuse my English),

What a long discussion (some related and some related in a way…).

After reading through Adam’s (the vineyard), Jason’s (wet lumber) and Mr Tea ($/ounce), and a post http://qbblog.ccrsoftware.info/2009/03/shipping-costs-and-quickbooks-inventory/ , felt that I got the same issue and was hit by the feeling of sometimes……haaaa I got it and sometimes….are you sure ? dilemma.

My story:
I’m a transport company that purchase sand and deliver to my customers. I bill my customer one amount that includes the (sand cost + small markup + transport fees + moving up and down the lorry). The inventory works fine and very pleased with Quickbooks Premier 2008 Asia version.

Now:
I won a tender from my government that enables me to mine (? or sand mining operation) my own sand and pay the government the royalties on the sand. The mining operation will incur various costs relates to the mining process.

It seems that now, I’m not buying any sand from anyone. How to enter into quickbooks the inventory quantity from the mining process and the cost/value.

Thanks all.
Thanks Charlie for a great-great blog.

By: Charlie

Charlie — Mon, 18 Jan 2010 06:38:33 +0000

Sue, I hate to say this, but I’m not sure that I can help you in a few comments in a blog like this. One problem is that I’m actually “on the road” and out of the office, so I have limited time to look at the blog. Another is that I’m not a CPA so I don’t like to give very specific answers like what you need without having my hands on your system. In a very general sense, inventory value adjustments are what you probably need. If you are expecting to move ALL of the cost from the purchases account, then if you find that you “overdraw” it, that amount has to then be adjusted off against an expense account like “shrinkage” or “loss by theft”, etc., with a journal entry (not an inventory adjustment).

Make a copy of your file, play with things, if you don’t like the results then restore that backup. And perhaps get a local ProAdvisor who can look at your actual files and give you informed answers.