Enter an inventory revaluation adjustment
You might need to enter an inventory revaluation adjustment if your item has changed in value since you purchased it.
An item has become obsolete and you will only be able to sell it at a heavy discount
Items have been damaged by fire or flood
An item is now in short supply in the market and you will be able to command a premium for it.
Before you begin, make sure you've reviewed these important points.
What you need to know about inventory adjustments
To enter the adjustment:
Go to Accounts, then select Inventory.
Click on the line to open the item you want to adjust.
Click Options, then New adjustment.
In the Adjustment type field, select Revaluation.
Complete the following fields:
Date - Select a date or leave to keep today's date.
The date you enter is the date of the adjustment journal in Xero. However, Xero updates the quantity on hand as at today's date. Xero does not backdate or forward date inventory quantity adjustments.
Either Average Cost or Total Value - Changing a figure in one of these fields will automatically update the other field.
Adjustment Account - Select the account from your chart of accounts where you want to record the inventory adjustment. You can add an adjustment account if necessary.
You may need to create an inventory adjustment account
Notes - Enter a reason for the adjustment.
Click Review Adjustment.
Check that the adjustment details are correct. Click Post Adjustment.