Thanks for your response! Yes the inventory is the same in QB as it is on the 1120s.  The purchases are the same and the net income are the same.  Its definitely in the COGs area.  COGs in QB is 198,793.96 and COGs on 1120s is 202,616, the exact amount I entered in QB to adjust the inventory. I dated the adjustment 12-31-21 and I credited Inventory and debited Purchases $4121.