Hi Keith

Use Physical Inventory. It is much faster. You need to thoroughly understand the steps though, especially the significance of printing the physical inventory worksheet (even if just to screen).

The only reason to use Adjustments is to adjust the costs for an item where the quantity on hand is zero and there are residual costs. I don't think this is your scenario.

I would not recommend adjusting the negative quantities up to the physical count in one step. I would instead recommend adjusting the inventory up to zero, making sure the item valuation report shows a zero total valuation, and then doing a second physical to record proper quantities.

Steve