To adjust an item's total value and unit cost

The Adjust Inventory window should be displayed. (To find the Adjust Inventory window)

1. Enter the number of the item you want to change in the Item Number column in the scrolling list.
2. Be sure 0 (zero) appears in the Quantity column.

Warning: Don't make any changes to the Unit Cost column

It's very important that you don't make changes to the Unit Cost column at this point. The Unit Cost amount will be automatically adjusted when you record the adjustment transaction.

3. In the Amount column, enter the amount of the adjustment only, not the new total value of the item.

Note: If this adjustment is an opening balance amount, the total value of the item equals the amount of the adjustment.

4. Your entry in the Account column depends upon your situation. Read the information in this step carefully before you make an entry in the Account column.

• If the balance of the item's inventory asset account is correct and you don't want the transaction to change the balance, enter that inventory asset account as the allocation account for the transaction. The transaction will debit and credit the inventory asset account, and the balance of the account won't change. Choose Recap Transaction from the Edit menu to view the accounting entries that will be made to your financial records when you record the inventory adjustment

• If you want the balance of your inventory asset account to reflect this adjustment transaction, enter the expense or cost of sales account that you want to use to track this adjustment. Choose Recap Transaction from the Edit menu to view the accounting entries that will be made to your financial records when you record the inventory adjustment.

5. Click Record.