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Point of Sale: Inventory adjustments overview


Adjustment memos are used to make changes to item quantities or costs. The changes tracked are those that would not otherwise be recorded on another transactional document such as a voucher or a sales receipt.

Typical uses for manually-created adjustment memos include:

  • Adjust quantity for theft and other shrinkage
  • Adjust quantity for donated items
  • Remove defective or damaged returned items from inventory
  • Correct cost or quantity errors in inventory

When you create an adjustment memo, the affected On-hand Quantity or Average Unit Cost fields are automatically updated in inventory and a permanent record of the change is added to your adjustment history.

Some actions in QuickBooks Point of Sale Desktop, such as deleting an item with a non-zero on-hand quantity, conducting a physical inventory, manually entering or editing an items average unit cost or on-hand quantity, and building or breaking assembly items, result in program-generated adjustment memos.

Saved memos are permanently stored in your adjustment history lists. A separate list is maintained for each memo type, quantity and cost. Memos can be reversed to correct errors, but never deleted.

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