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userjharnakaram
May 27, 2021
Question

Inventory quantity reduction without choosing a payment account

  • May 27, 2021
  • 1 reply
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Hello, my Inventory is recorded as SKU in QB. Now there are certain SKus I have withdrawn for office and warehouse use for which I need to reduce the quantity in the inventory but there is no cash involvement as these withdrawal are for business - quickbooks is asking to select a payment account. Which account should I create or select to enter this in the system.

 

How can I record this withdrawal of items in the system 

1 reply

AlexV
AlexV
May 27, 2021

Hi userjharnakaram!

 

Welcome to QuickBooks Community. I'm here to show you how to reduce your inventory.

 

There are two ways to record it in QuickBooks Online. The first one is by adjusting the quantity on hand. Follow these steps:

  1. Go to the + New and select Inventory Qty Adjustment.
  2. Enter the Adjustment Date and select the appropriate Inventory adjustment account.
  3. Select a Product and enter either a new quantity or a change in quantity.
  4. In the Memo field, enter the details about the adjustment. Tap Save and close.

 

Once you save it, QuickBooks Online will create adjustments to your stock Asset and Cost of Goods Sold accounts.

 

Another way is by using a journal entry. This process creates a credit that you can apply as payment. Also, you'll need an expense account where you'll track the adjustment. Please follow the steps in this article or consult with your accountant: Write off inventory items.

 

Here are some of the links that may help you in handling your inventory:

 

Do you have other concerns? Comment to this thread and we'll reply as soon as we can.

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