Question

How can I adjust inventory value on hand, but not quantity on hand? I have some items that have a value, but zero quantity on hand (per Inventory Valuation Summary rpt)

Forum|Forum|4 years ago
November 30, 2021
2 replies
39 views

On my inventory valuation reports, balance sheet, etc, I have items that have value, but no quatntiy. The zero quantity is correct. for example, one item is zero Qty on Hand, but $2500 value. Another is zero Qty on Hand, but -$0.02. Going through thousands of transactions to determine where the system may have made a mistake is not really an option.

QuickBooks Online

KimMcCPA

You may be able to discover what's causing the issue pretty quickly by filtering the Inventory Valuation Detail for the product that has zero quantity, THEN searching the displayed report rapidly (Ctrl-F) for Bill first, then for Check... because these two transactions add to inventory. Skim for common fields in the transactions that repeatedly have zero quantity but not zero value... for example, does a particular vendor seem to be associated with these transactions? Consider adding some more columns (Customize button > Change columns to expand list)... one that comes to mind is SKU, because if an item was a special order and not being assigned a SKU, it could be that the quantity was skipped but the value was known.

S

SoonerBrianAuthor

Thank you for your input. For one of the items, I did as you suggested and filtered the detail. I found that the item (175 units) came into stock on an inventory adjustment. I presume that it used the cost tied to the item at the Item-level setup. This was a situation where the part # changed, so we adjusted out 175 of the old item and adjusted in 175 of the new item. The new item (the one that today shows value, but no quantity) had never been received before on a PO/Bill or check. It actually looks like the adjustment is fine: 175 pieces, $14.40 each, total FIFO cost of $2520. The problem is that subsequent invoices deducted stock qty, but did not deduct cost. On the Inventory Valuation Detail, the "Qty on Hand" is reduced for every invoiced unit, but the "Asset Value" remained the same, $2250, until there was ultimately zero in stock, but a $2250 asset value remaining. I'm sure I could go back and delete that adjustment and add the stock from PO instead, but that transaction would be in 2019. I know that this made GP overstated for those invoices, but I'd would still like to fix it with an adjustment in the current year, so as not to mess with closed months/years. Any ideas? There are a few others (smaller $$ amounts) which likely will be more difficult to determine the root costing problem.

Rubielyn_J

Level 8

Thanks for getting back to this thread, @SoonerBrian. Let me add some details to help you adjust your inventory in QuickBooks.

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.

In addition to that, let me share these links to help you manage your inventory items in QuickBooks:

Fill me in if you have other questions about inventory quantities. I'll be around to assist you again. Keep safe!

E

Eleanor Cleverence

Looks like you've got a data integrity hiccup in QuickBooks. If you’re seeing items with a zero quantity but, let’s say, a $2500 value or even -$0.02, it’s probably cuz of bungled transaction entries. Sometimes this happens with adjustments or invoicing. While going through thousands of transactions can feel overwhelming, you gotta spot these blips to fix them up.

What I'd do first is to run an Inventory Report. Filter it for items that got a zero quantity but aren’t at zero value. Dive into recent transactions - look out for credit memos, purchase receipts, or manual adjustments that are off.

If keeping tabs by hand seems like a bust, try QuickBooks' audit log. It's a beast to sift through but will show every transaction change.

You might wanna automate this mess. Integrate an inventory management tool that syncs with QB to keep data up to snuff. Just be sure integrations don’t mess up more than they help.

And hey, if you're still stuck, it could save time to hit up a QuickBooks consultant or community. Sometimes it's just about knowing the right tricks.

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