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A
accounting-ygpso
May 1, 2022
Question

How to delete inventory shrinkage? I dont understand this feature and it ruined my figures.

  • May 1, 2022
  • 2 replies
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how to delete inventory shrinkage? I dont understand this feature and it ruined my figures.

2 replies

MJoy_D
MJoy_D
May 1, 2022

I can share some information to help you with deleting the inventory shrinkage, @accounting-ygpso.

 

Inventory Shrinkage is an account automatically created by QuickBooks Online (QBO) once you adjust the quantity on hand on your inventory product. This is a default account that is used to record all the adjustments or changes you've made. 

 

I always suggest reaching out to an accountant when editing inventory adjustment entries.

 

You can use the Advanced search function in QBO to find and delete this transaction.

 

Here's how:

 

  1. Go to the Search icon (magnifying glass) on the toolbar and click on Advanced search.
  2. In the Inventory adjustment account drop-down, select the appropriate account.
  3. From the All Transactions dropdown, pick Inventory Quantity Adjustment.
  4. Click on Search.
  5. Choose the adjustment that you need to remove and click on Delete.

 

For more information about Inventory Shrinkage, and how to edit or delete it, refer to this article: Adjust inventory quantity on hand in QuickBooks Online.

 

You can update an existing inventory quantity adjustment rather than create a new one. You may also make changes to the inventory or add new items as needed. See this guide for more information: Edit an inventory quantity adjustment.

 

After that, you can run reports to check what's your best sellers, what’s on hand, the cost of goods, or your inventory status: Use reports to see your sales and inventory status.

 

Let me know if you still need further help with deleting your inventory shrinkage. I'm always here to help. Have a great rest of the day!

A
accounting-ygpsoAuthor
May 1, 2022

Hi joy, appreciate your fast response, as i felt very helpless using QBO because their hotline in the philippines is just open from mon-fri, which is very hassle for business managers like me who is newbie to QBO and need realtime help. 

 

By the way, I already deleted the SHRINKAGE INVENTORY, however why its still showing in my DASHBOARD as expenses? and because of that, my PROFIT and LOSS report is now showing negative amount. This is crazy.

 

 

J
JonpriL
May 1, 2022

Appreciate the update, @accounting-ygpso.

 

I'll help delete the inventory shrinkage account in QuickBooks Online.

 

Yes, Inventory Shrinkage is an account automatically created after an inventory adjustment is made. Since you've already removed the said adjustment, let's also delete the account and fix the figures of your Profit and Loss report.

 

To do so:

 

  1. Go to Accounting.
  2. Select Chart of Accounts.
  3. Enter Inventory Shrinkage in the text area next to the Batch Actions menu.
  4. Under the Action column, select the Run Report menu.
  5. Select Make Inactive.
  6. Click Yes.

 

I'm adding this reference that'll help you understand your account and its transaction history which breaks down how much money you have or owe: The Chart of Accounts in QuickBooks.

 

Let me know in the comments below using the Reply button if you've got questions other than changing an account detail. I'll be here ready to lead a helping hand. Take care always!

A
accounting-ygpsoAuthor
May 1, 2022

Hi, it seems like to are just relying in your script but you really don't comprehend what my issue is. 

as I have mentioned, I already deleted /set to inactive the INVENTORY SHRINKAGE. However, why its still showing in my profit and loss as negative amount? pls refer to my screenshot. 

my question is WHY?

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