QBO: Other > Inventory Adjustment. Auto creates account called Inventory Shrinkage if it does not already exist. Even if I choose a different account. Bug/Feature?

Hi there, Sweetunda.

Inventory Shrinkage is one of QuickBooks Online's pre-created accounts. As mentioned by my colleague above, this is automatically created once you adjust the quantity on hand on your inventory product. QuickBooks uses this account to record all the changes or adjustments.

If you wish to use another account when creating adjustment, click on the drop-down arrow under the Inventory adjustment account and choose the correct account you want as my peer provided.

If you need to undo the adjustment, you can delete it to remove any records of adjustments. However, this will not remove the Inventory Shrinkage account in the system.

Here's how:

1. Click the Search icon at the top right.

2. Select Advanced Search.

3. Search for Inventory Quantity Adjustment.

4. You can filter the adjustment to see the desired item.

5. Click to open the item.

6. Select Delete, then select Yes to confirm.

You can read through this article for additional information with the solution above: How to adjust inventory quantity on hand.

Please check this article on how to check your inventory so you'll always have an accurate count: Fix negative inventory issues in QuickBooks Online.

If you have any other concerns, don't hesitate to let us know. I'm here to help.

We can fix this by adjusting the inventory, hosbrook41.

Let me guide you with these steps:

1. From the + New button, select Inventory Qty Adjustment.
2. Enter the Adjustment Date.
3. In the Inventory adjustment account field, select the appropriate account.
4. Enter  new quantity for each item.
5. Click Save and close.

Afterward, let's try running the Profit and Loss report again. If you want to modify the data on the report, you can check this reference: Customize reports in QuickBooks Online.

I'll be around if ever you need help. Keep safe!