Using QB Pro 2010. I operate a franchise retail store and use a franchise proprietary POS program to track inventory at the stores. The Items and Inventory feature doesn’t seem to be appropriate in my case. I take a physical inventory at the end of the year, which gives me the total cost of my inventory. What accounts do I use to enter the difference between the previous inventory cost and this one using General Journal entries?
Normally, you will COGS account. If you like to see separate visible account for this one-time entry, you will create new like “Year-End Inventory Adjustment” account under Cost of Goods Sold.