Inventory adjsutments with out changing net profit?

Hi there, @flynn-joseph.

Allow me to provide information about adjusting your inventory.

In QuickBooks, we can only adjust the quantity of the inventories and not the value or amount. It constantly considers the first items you purchase as the first items you sell. Also known as the FIFO process, where the value was taken from the oldest unsold item. In which the program will still utilize the old value when making transactions.

If it needs to adjust the COGs, then you’ll want to adjust the purchase transaction itself. Changing the starting value only affects the initial value of your inventory.

I also suggest consulting your accountant to ensure that you selected the correct account when recording. This way, the adjustments made are accurate.

Additionally, allow me to share these articles to help you manage your inventory:

• Impacts of inventory tracking on balance sheet and profit & loss reports
• Adjust inventory quantity on hand in QuickBooks Online

Keep me posted if you have more questions managing your inventory. Have a nice day!