I've done a physical inventory and now I need to do an inventory adjustment. I have made quite a few mistakes where I show quantity where there is none and sometimes even negative quantities. When I do Adjust/Qty Value OnHand, which Adjustment Account do I choose? How will this affect my Balance Sheet? Thanks.
http://www.qbgarage.com/kb/que...
You should find most of what you need at this link, except what you need to do to deal with negative inventory. That’s a much bigger issue. How many items do you have that are negative and how material are the dollar amounts involved? How long have you let inventory levels run negative? Answers to those questions will determine how you go about fixing the negative quantity
I've not done a physical inventory for a few years, so the negative quantities have been there for a while. they are for small amounts ($6.00 each) and they are a result of selling one thing and recording another of the same price. Therefore, once I do a physical inventory I will be able to find out which should be reversed.....
