Workflow for correcting inventory

1
  1. What report/s should I be generating as my basis for the inventory balance (quantity and value)?
  2. After computing the discrepancy between the system balance and physical inventory count, how to correct it properly?

Say I have Product A with system balance of 1,000 units with total cost of $100,000 (unit cost is $10).

Yet my physical count shows 800 units and the manual computation shows average of $9.00 unit cost.

Thanks!

2

You can create new expense account named Inventory Deficit then you can use inventory write off tab, choose item: item A and choose account: inventory deficit, the result

Debit: inventory deficit

Credit: inventory on hand

3

thanks for this one. But how about the reports I should generate to compare my physical count with?