V8 - Adjustment transaction interaction

An adjustment in SOS Inventory is used to increase or decrease your inventory quantities/values in SOS Inventory.  An adjustment created in SOS Inventory will create a journal entry in QuickBooks that affects the asset account(s) of the item(s) on the adjustment and the account selected on the adjustment.

An example of how an adjustment in SOS is handled in the system is shown below:

Adjustment #ADJ-547 increases the quantity of aluminum sheets in inventory by 100 units. SOS Inventory calculates the value of the increase using the $.50/sheet purchase cost that is listed in the item definition, thereby increasing the cost basis by $50.00.

SOS will post the increase as a debit to the Inventory asset account. The user has specified that SOS should post the offsetting credit to the Inventory shrinkage account.

When adjustment transaction ADJ-547 is saved, SOS creates a corresponding journal entry and assigns to it the reference number SOS-17689. The journal entry can be viewed in SOS after syncing with QuickBooks Online.

To locate the entry in SOS, go to the Sync menu > Journal entries. Use the Date column and adjustment transaction listed in the Memo column to help you locate the appropriate journal entry reference number, which is displayed in the Ref # column.

In QuickBooks Online, journal entry SOS-17689 is accessible through the Inventory asset register and Inventory shrinkage report from the Chart of accounts page.

The QuickBooks Online journal entry for SOS-17689 is shown below. The Description column includes a reference to adjustment transaction ADJ-547, the SOS Inventory source document for the journal entry.

Additional information about adjustments:
 

• When the inventory quantity is decreased by the adjustment, SOS Inventory will calculate the value of the decrease based on the actual value of the items being removed from inventory.  Actual value is based on the valuation method selected and the transactions that brought the stock into inventory.
• When the inventory quantity is increased by the adjustment, SOS Inventory will calculate the value of the increase based on the purchase cost listed in the item record.
• If the journal entry reflecting the adjustment is edited/deleted in QuickBooks, this will not affect the adjustment transaction in SOS Inventory.
• An item bulk edit in SOS Inventory can create an adjustment in SOS Inventory when the inventory quantities/values in the uploaded sheet are different from the numbers in the system at the time of the data upload.  This adjustment will not automatically post a journal entry to QuickBooks.  As the Export data/Import data tools are most commonly used to edit items in bulk and enter starting inventories that are already accounted for in QuickBooks accounts, not creating the journal entry in QuickBooks is the intended behavior.  If your intent is to use the bulk features to update inventory quantities/values in SOS Inventory and have the accounts in QuickBooks reflect the value change, you must edit and save the adjustment that results from uploading the data.