Archive for June 2011
Question – I have several inventory sites. When I move inventory from one site to another, how can I adjust the valuation of the inventory to account for transportation costs?
Answer – In QuickBooks one can adjust the valuation of inventory by using the Adjust Value/Quantity on Hand function. Go to Vendors – Inventory Activities – Adjust Quantity/Value on Hand. The upper left drop down, Adjustment Type, allows you to select the type of change desired. To adjust the value only, select Total Value from the Adjustment Type drop-down menu. Enter the new value of the inventory in the far right column. The Total Value of Adjustment will be recorded below this column. Be sure to select the correct account under Adjustment Account. If, for example, shipping inventory from one site to another has added $500 to the cost of the inventory. By selecting the appropriate account, Shipping Out Expense, for example, the additional cost will now be credited to Shipping Out Expense, the average cost per unit will now be appropriately increased and the additional cost will not be double-counted.
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