How does stock quantity adjusment add up to the P&L. Does Purchases add up the same way?

I’m here to share insights about purchases and quantity adjustments, Miriam.

In QuickBooks Online (QBO), the purchase order (PO) is a non-posting transaction that doesn’t affect your accounting. This is the reason why purchases don’t show up in the Profit & Loss as cost of sales. It’ll only be included as part of the cost once it's turned into a bill or the payment is processed.

When you save the stock adjustment, QBO automatically records appropriate adjustments to your stock Asset and Cost of Goods Sold (under stock Shrinkage) accounts.

You can check this guide to learn more about stock quantity: Adjust stock quantity on hand in QBO.

Moreover, here’s an article that contains information to keep you from negative stock and have an accurate count: Fix negative stock issues.

I’d be glad to help you more if you have any other questions or concerns about managing your stock. Select the Reply button below to add your comments. Take care always!