How to record damaged stock in quickbooks?

Let's work together to create an inventory quantity adjustment in QuickBooks Online for recording damaged stock, Jackson.

In QuickBooks Online, you can adjust inventory quantity to match what you have in stock.

Here's how to do this:

1. Navigate to the +New button.
2. Under Other, select Inventory qty adjustment.
3. In the Adjustment Reason dropdown, pick Damaged Goods. 
4. Fill out the form.
5. Click Save and close.

You can also refer to this article for more information: Adjust inventory quantity on hand in QuickBooks Online.

For future reference, here's a guide on generating reports to check the status of your inventory: Use reports to see your sales and inventory status in QuickBooks Online.

If you have any further questions about managing inventory in QuickBooks Online, feel free to let me know in the comment section below. I'm here to assist you, Jackson.

@jackson-chan-reg 

I would not suggest using an inventory adjustment in this case.  There's nothing you need to record regarding the damaged items.  Their cost was expensed when you either purchased or sold the items so there's no additional expense to record. The replacement items should have been expensed when you purchased them or sold them to your customer on a $0 invoice.