Inventory Updates/Adjustments

1

Good morning. Yes, I’m aware this topic has been brought up before but most of the discussion is quite old, prior to 2020. As a online retail business, we have to do physical inventory accounts at least once a year. Adjusting inventory quantities after a physical count seems very awkward from what I can find. If there is a shortage, you use the inventory write off functionality. If there is an increase you have to make a journal entry. Both of these require you to determine the average cost ahead of time for each adjustment instead of the running average cost being automatic. Is there not a better way? This seems like it would be a common issue.