In the beginning of the year (up until August), we did not keep an itemized inventory in our software. We were able to put in our bills for inventory received (so our cost of sales were correct), however it was not reflected in the actual inventory. All of this time we were making sales (so all of our inventory became negative). Starting in August we were able to properly record in our software the itemized inventory bills. This should not have posed a problem by itself, however to have our actual inventory properly reflect what was actually in stock we had to make massive positive inventory adjustments. This caused our cost of sales to massively plummet while not affecting our revenue, resulting in our gross profit and net income showing a very substantial (and incorrect) increase starting at the beginning of August. What we need is to be able to properly adjust either the cost of sales or revenue without effecting our current inventory.