diff --git a/app/models/line_item.rb b/app/models/line_item.rb
index 36cb1d7a17..ec833b79a8 100644
--- a/app/models/line_item.rb
+++ b/app/models/line_item.rb
@@ -23,6 +23,7 @@ class LineItem < ApplicationRecord
   validates :item_id, presence: true
   validates :quantity, numericality: { only_integer: true, less_than: MAX_INT, greater_than: MIN_INT }
   scope :active, -> { joins(:item).where(items: { active: true }) }
-
+  scope :out_items, ->(storage_location_id, organization_id) { where("(distributions.storage_location_id = :id or (adjustments.storage_location_id= :id and line_items.quantity < 0) or transfers.from_id = :id or kit_allocations.storage_location_id = :id) and items.organization_id= :organization_id", id: storage_location_id, organization_id: organization_id) }
+  scope :in_items, ->(storage_location_id, organization_id) { where("(donations.storage_location_id = :id or purchases.storage_location_id = :id or (adjustments.storage_location_id = :id and line_items.quantity > 0) or transfers.to_id = :id or kit_allocations.storage_location_id = :id) and items.organization_id = :organization_id", id: storage_location_id, organization_id: organization_id) }
   delegate :name, to: :item
 end
diff --git a/app/queries/items_in_query.rb b/app/queries/items_in_query.rb
index 5792d8b8da..84f2ce7272 100644
--- a/app/queries/items_in_query.rb
+++ b/app/queries/items_in_query.rb
@@ -19,8 +19,9 @@ def call
 LEFT OUTER JOIN purchases ON purchases.id = line_items.itemizable_id AND line_items.itemizable_type = 'Purchase'
 LEFT OUTER JOIN items ON items.id = line_items.item_id
 LEFT OUTER JOIN adjustments ON adjustments.id = line_items.itemizable_id AND line_items.itemizable_type = 'Adjustment'
-LEFT OUTER JOIN transfers ON transfers.id = line_items.itemizable_id AND line_items.itemizable_type = 'Transfer'")
-                        .where("(donations.storage_location_id = :id or purchases.storage_location_id = :id or (adjustments.storage_location_id = :id and line_items.quantity > 0) or transfers.to_id = :id)  and items.organization_id = :organization_id", id: @storage_location.id, organization_id: @organization.id)
+LEFT OUTER JOIN transfers ON transfers.id = line_items.itemizable_id AND line_items.itemizable_type = 'Transfer'
+LEFT OUTER JOIN kit_allocations ON kit_allocations.id = line_items.itemizable_id AND line_items.itemizable_type = 'KitAllocation' AND kit_allocations.kit_allocation_type = 'inventory_in'")
+                        .in_items(@storage_location.id, @organization.id)
                         .select("sum(line_items.quantity) as quantity, items.id AS item_id, items.name")
                         .group("items.name, items.id")
                         .order("items.name")
diff --git a/app/queries/items_in_total_query.rb b/app/queries/items_in_total_query.rb
index fa6dc3f23b..5f1adeb061 100644
--- a/app/queries/items_in_total_query.rb
+++ b/app/queries/items_in_total_query.rb
@@ -19,8 +19,9 @@ def call
 LEFT OUTER JOIN purchases ON purchases.id = line_items.itemizable_id AND line_items.itemizable_type = 'Purchase'
 LEFT OUTER JOIN items ON items.id = line_items.item_id
 LEFT OUTER JOIN adjustments ON adjustments.id = line_items.itemizable_id AND line_items.itemizable_type = 'Adjustment'
-LEFT OUTER JOIN transfers ON transfers.id = line_items.itemizable_id AND line_items.itemizable_type = 'Transfer'")
-                        .where("(donations.storage_location_id = :id or purchases.storage_location_id = :id or (adjustments.storage_location_id = :id and line_items.quantity > 0) or transfers.to_id = :id)  and items.organization_id = :organization_id", id: @storage_location.id, organization_id: @organization.id)
+LEFT OUTER JOIN transfers ON transfers.id = line_items.itemizable_id AND line_items.itemizable_type = 'Transfer'
+LEFT OUTER JOIN kit_allocations ON kit_allocations.id = line_items.itemizable_id AND line_items.itemizable_type = 'KitAllocation' AND kit_allocations.kit_allocation_type = 'inventory_in'")
+                        .in_items(@storage_location.id, @organization.id)
                         .sum("line_items.quantity")
   end
   # rubocop:enable Naming/MemoizedInstanceVariableName
diff --git a/app/queries/items_out_query.rb b/app/queries/items_out_query.rb
index 016245c6b2..e16b286ffd 100644
--- a/app/queries/items_out_query.rb
+++ b/app/queries/items_out_query.rb
@@ -14,13 +14,13 @@ def initialize(organization:, storage_location:, filter_params: nil)
 
   # rubocop:disable Naming/MemoizedInstanceVariableName
   def call
-    @items ||=  LineItem.joins("
+    @items ||= LineItem.joins("
 LEFT OUTER JOIN distributions ON distributions.id = line_items.itemizable_id AND line_items.itemizable_type = 'Distribution'
 LEFT OUTER JOIN items ON items.id = line_items.item_id
 LEFT OUTER JOIN adjustments ON adjustments.id = line_items.itemizable_id AND line_items.itemizable_type = 'Adjustment'
-LEFT OUTER JOIN transfers ON transfers.id = line_items.itemizable_id AND line_items.itemizable_type = 'Transfer'")
-  .where("(distributions.storage_location_id = :id or (adjustments.storage_location_id= :id and line_items.quantity < 0) or transfers.from_id = :id) and items.organization_id= :organization_id",
-    id: @storage_location.id, organization_id: @organization.id)
+LEFT OUTER JOIN transfers ON transfers.id = line_items.itemizable_id AND line_items.itemizable_type = 'Transfer'
+LEFT OUTER JOIN kit_allocations ON kit_allocations.id = line_items.itemizable_id AND line_items.itemizable_type = 'KitAllocation' AND kit_allocations.kit_allocation_type = 'inventory_out'")
+    .out_items(@storage_location.id, @organization.id)
     .select("sum( case when line_items.quantity < 0 then -1*line_items.quantity else line_items.quantity END ) as quantity, items.id AS item_id, items.name")
     .group("items.name, items.id")
     .order("items.name")
diff --git a/app/queries/items_out_total_query.rb b/app/queries/items_out_total_query.rb
index ad0d39e124..14634c19a8 100644
--- a/app/queries/items_out_total_query.rb
+++ b/app/queries/items_out_total_query.rb
@@ -14,13 +14,14 @@ def initialize(organization:, storage_location:, filter_params: nil)
 
   # rubocop:disable Naming/MemoizedInstanceVariableName
   def call
-    @items ||=  LineItem.joins("
+    @items ||= LineItem.joins("
 LEFT OUTER JOIN distributions ON distributions.id = line_items.itemizable_id AND line_items.itemizable_type = 'Distribution'
 LEFT OUTER JOIN items ON items.id = line_items.item_id
 LEFT OUTER JOIN adjustments ON adjustments.id = line_items.itemizable_id AND line_items.itemizable_type = 'Adjustment'
-LEFT OUTER JOIN transfers ON transfers.id = line_items.itemizable_id AND line_items.itemizable_type = 'Transfer'")
-                        .where("(distributions.storage_location_id = :id or (adjustments.storage_location_id= :id and line_items.quantity < 0) or transfers.from_id = :id) and items.organization_id= :organization_id", id: @storage_location.id, organization_id: @organization.id)
-                        .sum("case when line_items.quantity < 0 then -1*line_items.quantity else line_items.quantity END")
+LEFT OUTER JOIN transfers ON transfers.id = line_items.itemizable_id AND line_items.itemizable_type = 'Transfer'
+LEFT OUTER JOIN kit_allocations ON kit_allocations.id = line_items.itemizable_id AND line_items.itemizable_type = 'KitAllocation' AND kit_allocations.kit_allocation_type = 'inventory_out'")
+                    .out_items(@storage_location.id, @organization.id)
+                    .sum("case when line_items.quantity < 0 then -1*line_items.quantity else line_items.quantity END")
   end
   # rubocop:enable Naming/MemoizedInstanceVariableName
 end
diff --git a/app/services/allocate_kit_inventory_service.rb b/app/services/allocate_kit_inventory_service.rb
index 765d9075f4..2e2f226760 100644
--- a/app/services/allocate_kit_inventory_service.rb
+++ b/app/services/allocate_kit_inventory_service.rb
@@ -36,40 +36,26 @@ def allocate_inventory_items_and_increase_kit_quantity
   end
 
   def allocate_inventory_in_and_inventory_out
-    allocate_inventory_in
-    allocate_inventory_out
-  end
-
-  def allocate_inventory_out
-    kit_allocation = KitAllocation.find_or_create_by!(storage_location_id: storage_location.id, kit_id: kit.id,
-      organization_id: kit.organization.id, kit_allocation_type: "inventory_out")
-    line_items = kit_allocation.line_items
-    if line_items.present?
-      kit_content.each_with_index do |line_item, index|
-        line_item_record = line_items[index]
-        new_quantity = line_item_record[:quantity] + line_item[:quantity].to_i * -1
-        line_item_record.update!(quantity: new_quantity)
-      end
-    else
-      kit_content.each do |line_item|
-        kit_allocation.line_items.create!(item_id: line_item[:item_id], quantity: line_item[:quantity].to_i * -1)
+    kit_allocation_types = ["inventory_in", "inventory_out"]
+    kit_allocation_types.each do |kit_allocation_type|
+      kit_allocation = KitAllocation.find_or_create_by!(storage_location_id: storage_location.id, kit_id: kit.id,
+        organization_id: kit.organization.id, kit_allocation_type: kit_allocation_type)
+      line_items = kit_allocation.line_items
+      multiply_by = (kit_allocation_type == "inventory_out") ? -1 : 1
+      if line_items.present?
+        kit_content.each_with_index do |line_item, index|
+          line_item_record = line_items[index]
+          new_quantity = line_item_record[:quantity] + line_item[:quantity].to_i * multiply_by
+          line_item_record.update!(quantity: new_quantity)
+        end
+      else
+        kit_content.each do |line_item|
+          kit_allocation.line_items.create!(item_id: line_item[:item_id], quantity: line_item[:quantity].to_i * multiply_by)
+        end
       end
     end
   end
 
-  def allocate_inventory_in
-    kit_allocation = KitAllocation.find_or_create_by!(storage_location_id: storage_location.id, kit_id: kit.id,
-      organization_id: kit.organization.id, kit_allocation_type: "inventory_in")
-    line_items = kit_allocation.line_items
-    if line_items.present?
-      kit_item = line_items.first
-      new_quantity = kit_item[:quantity] + increase_by
-      kit_item.update!(quantity: new_quantity)
-    else
-      kit_allocation.line_items.create!(associated_kit_item)
-    end
-  end
-
   def set_error(error)
     @error = error.message
   end
diff --git a/app/services/deallocate_kit_inventory_service.rb b/app/services/deallocate_kit_inventory_service.rb
index 66ad6b88dd..ebd0a21018 100644
--- a/app/services/deallocate_kit_inventory_service.rb
+++ b/app/services/deallocate_kit_inventory_service.rb
@@ -34,47 +34,30 @@ def deallocate_inventory_items
   end
 
   def deallocate_inventory_in_and_inventory_out
-    deallocate_inventory_in
-    deallocate_inventory_out
-  end
-
-  def deallocate_inventory_out
-    kit_allocation = KitAllocation.find_by(storage_location_id: storage_location.id, kit_id: kit.id,
-      organization_id: kit.organization.id, kit_allocation_type: "inventory_out")
-    if kit_allocation.present?
-      line_items = kit_allocation.line_items
-      kit_content.each_with_index do |line_item, index|
-        line_item_record = line_items[index]
-        new_quantity = line_item_record[:quantity] + line_item[:quantity].to_i
-        if new_quantity.to_i == 0
-          kit_allocation.destroy!
-          break
-        elsif new_quantity.to_i > 0
-          raise StandardError.new("Inconsistent inventory out")
-        else
-          line_item_record.update!(quantity: new_quantity)
+    kit_allocation_types = ["inventory_in", "inventory_out"]
+    kit_allocation_types.each do |kit_allocation_type|
+      kit_allocation = KitAllocation.find_by(storage_location_id: storage_location.id, kit_id: kit.id,
+        organization_id: kit.organization.id, kit_allocation_type: kit_allocation_type)
+      if kit_allocation.present?
+        multiply_by = (kit_allocation_type == "inventory_out") ? 1 : -1
+        line_items = kit_allocation.line_items
+        kit_content.each_with_index do |line_item, index|
+          line_item_record = line_items[index]
+          new_quantity = line_item_record[:quantity] + line_item[:quantity].to_i * multiply_by
+          if new_quantity.to_i == 0
+            kit_allocation.destroy!
+            break
+          elsif kit_allocation_type == "inventory_out" && new_quantity.to_i > 0
+            raise StandardError.new("Inconsistent inventory out")
+          elsif kit_allocation_type == "inventory_in" && new_quantity.to_i < 0
+            raise StandardError.new("Inconsistent inventory in")
+          else
+            line_item_record.update!(quantity: new_quantity)
+          end
         end
-      end
-    else
-      raise Errors::KitAllocationNotExists
-    end
-  end
-
-  def deallocate_inventory_in
-    kit_allocation = KitAllocation.find_by(storage_location_id: storage_location.id, kit_id: kit.id,
-      organization_id: kit.organization.id, kit_allocation_type: "inventory_in")
-    if kit_allocation.present?
-      kit_item = kit_allocation.line_items.first
-      new_quantity = kit_item[:quantity].to_i - decrease_by
-      if new_quantity.to_i == 0
-        kit_allocation.destroy!
-      elsif new_quantity.to_i < 0
-        raise StandardError.new("Inconsistent inventory in")
       else
-        kit_item.update!(quantity: new_quantity)
+        raise Errors::KitAllocationNotExists
       end
-    else
-      raise Errors::KitAllocationNotExists
     end
   end
 
diff --git a/db/migrate/20230712104746_level_up_invetory_in.rb b/db/migrate/20230712104746_level_up_invetory_in.rb
new file mode 100644
index 0000000000..6d8a4f41b7
--- /dev/null
+++ b/db/migrate/20230712104746_level_up_invetory_in.rb
@@ -0,0 +1,5 @@
+class LevelUpInvetoryIn < ActiveRecord::Migration[7.0]
+  def change
+    Rake::Task["kit_allocation:inventory_in"].invoke
+  end
+end
diff --git a/db/schema.rb b/db/schema.rb
index d10d962b28..0502d22afb 100644
--- a/db/schema.rb
+++ b/db/schema.rb
@@ -10,7 +10,7 @@
 #
 # It's strongly recommended that you check this file into your version control system.
 
-ActiveRecord::Schema[7.0].define(version: 2023_06_16_055847) do
+ActiveRecord::Schema[7.0].define(version: 2023_07_12_104746) do
   # These are extensions that must be enabled in order to support this database
   enable_extension "plpgsql"
 
diff --git a/lib/tasks/level_up_inventory_in.rake b/lib/tasks/level_up_inventory_in.rake
new file mode 100644
index 0000000000..42b5fc37f0
--- /dev/null
+++ b/lib/tasks/level_up_inventory_in.rake
@@ -0,0 +1,17 @@
+namespace :kit_allocation do
+  desc "Level up inventory in to inventory out in kit_allocations"
+  task inventory_in: :environment do |task|
+    KitAllocation.where(kit_allocation_type: "inventory_in").destroy_all
+    out_kit_allocations = KitAllocation.where(kit_allocation_type: "inventory_out")
+    out_kit_allocations.each do |out_kit_allocation|
+      in_kit_allocation = KitAllocation.create!(storage_location_id: out_kit_allocation.storage_location_id,
+        organization_id: out_kit_allocation.organization_id,
+        kit_id: out_kit_allocation.kit_id,
+        kit_allocation_type: "inventory_in")
+      out_kit_allocation.line_items.each do |line_item|
+        in_kit_allocation.line_items.create!(item_id: line_item.item_id, quantity: line_item.quantity * -1)
+      end
+    end
+    puts "Done..."
+  end
+end
diff --git a/spec/factories/kit_allocations.rb b/spec/factories/kit_allocations.rb
index 0a78ab0816..e4ca5f8d8c 100644
--- a/spec/factories/kit_allocations.rb
+++ b/spec/factories/kit_allocations.rb
@@ -20,5 +20,15 @@
       kit = Kit.find(instance.kit_id)
       kit.update(organization_id: instance.organization_id)
     end
+
+    trait :with_items do
+      after(:build) do |kit_allocation, evaluator|
+        kit = Kit.find(kit_allocation.kit_id)
+        multiply_by = (kit_allocation.kit_allocation_type == "inventory_in") ? 1 : -1
+        kit.line_items.each do |line_item|
+          kit_allocation.line_items << build(:line_item, quantity: line_item.quantity * multiply_by, item_id: line_item.item_id, itemizable: kit_allocation)
+        end
+      end
+    end
   end
 end
diff --git a/spec/queries/items_in_query_spec.rb b/spec/queries/items_in_query_spec.rb
index 1e656356f8..bbe42cdfc7 100644
--- a/spec/queries/items_in_query_spec.rb
+++ b/spec/queries/items_in_query_spec.rb
@@ -11,6 +11,8 @@
       create_list(:purchase, 2, :with_items, item: create(:item), item_quantity: 5, storage_location: storage_location)
       create_list(:adjustment, 2, :with_items, item: create(:item), item_quantity: 5, storage_location: storage_location)
       create_list(:transfer, 2, :with_items, item_quantity: 5, item: other_storage_location.inventory_items.first.item, from: other_storage_location, to: storage_location)
+      kit = create(:kit, :with_item, organization: @organization)
+      create(:kit_allocation, :with_items, kit_allocation_type: "inventory_in", kit_id: kit.id, storage_location: storage_location, organization_id: @organization.id)
     end
 
     it "returns a collection with the fields name, item_id, quantity" do
@@ -19,22 +21,22 @@
       expect(subject.first).to be_respond_to(:item_id)
     end
 
-    it "includes donations, purchases, adjustments, transfers among sources" do
-      expect(subject.to_a.size).to eq(4)
+    it "includes donations, purchases, adjustments, transfers, kit_allocations among sources" do
+      expect(subject.to_a.size).to eq(5)
     end
 
     it "does not count negative adjustments towards in-flow" do
       shared_item = create(:item)
       create(:donation, :with_items, item: shared_item, item_quantity: 10, storage_location: storage_location)
       create(:adjustment, :with_items, item: shared_item, item_quantity: -10, storage_location: storage_location)
-      expect(subject.to_a.size).to eq(5)
+      expect(subject.to_a.size).to eq(6)
     end
 
     it "does not count transfers going in the negative direction" do
       shared_item = create(:item)
       create(:donation, :with_items, item: shared_item, item_quantity: 10, storage_location: storage_location)
       create(:transfer, :with_items, item_quantity: 10, item: shared_item, from: storage_location, to: other_storage_location)
-      expect(subject.to_a.size).to eq(5)
+      expect(subject.to_a.size).to eq(6)
     end
   end
 end
diff --git a/spec/queries/items_in_total_query_spec.rb b/spec/queries/items_in_total_query_spec.rb
index ba47c27ea7..93372dcd3d 100644
--- a/spec/queries/items_in_total_query_spec.rb
+++ b/spec/queries/items_in_total_query_spec.rb
@@ -12,10 +12,12 @@
       create(:purchase, :with_items, item: create(:item), item_quantity: 10, storage_location: storage_location)
       create(:adjustment, :with_items, item: create(:item), item_quantity: 10, storage_location: storage_location)
       create(:transfer, :with_items, item_quantity: 10, item: other_storage_location.inventory_items.first.item, from: other_storage_location, to: storage_location)
+      kit = create(:kit, :with_item, organization: @organization)
+      create(:kit_allocation, :with_items, kit_allocation_type: "inventory_in", kit_id: kit.id, storage_location: storage_location, organization_id: @organization.id)
     end
 
     it "returns a sum total of all in-flows" do
-      expect(subject).to eq(40)
+      expect(subject).to eq(41)
     end
 
     it "counts shared items together" do
@@ -25,26 +27,26 @@
       create(:donation, :with_items, item: shared_item, item_quantity: 100, storage_location: storage_location)
       create(:purchase, :with_items, item: shared_item, item_quantity: 50, storage_location: storage_location)
       create(:adjustment, :with_items, item: shared_item, item_quantity: 100, storage_location: storage_location)
-      expect(subject).to eq(490)
+      expect(subject).to eq(491)
     end
 
     it "does not count negative adjustments towards in-flow" do
       create(:donation, :with_items, item: shared_item, item_quantity: 10, storage_location: storage_location)
       create(:adjustment, :with_items, item: shared_item, item_quantity: -10, storage_location: storage_location)
-      expect(subject).to eq(50)
+      expect(subject).to eq(51)
     end
 
     it "does not count transfers going in the negative direction" do
       create(:donation, :with_items, item: shared_item, item_quantity: 10, storage_location: storage_location)
       create(:transfer, :with_items, item_quantity: 10, item: shared_item, from: storage_location, to: other_storage_location)
-      expect(subject).to eq(50)
+      expect(subject).to eq(51)
     end
 
     it "does not count donations, purchases, adjustments to other storage locations" do
       create(:donation, :with_items, item: create(:item), item_quantity: 100, storage_location: other_storage_location)
       create(:purchase, :with_items, item: create(:item), item_quantity: 10, storage_location: other_storage_location)
       create(:adjustment, :with_items, item: create(:item), item_quantity: 10, storage_location: other_storage_location)
-      expect(subject).to eq(40)
+      expect(subject).to eq(41)
     end
   end
 end
diff --git a/spec/queries/items_out_query_spec.rb b/spec/queries/items_out_query_spec.rb
index c674b910b6..53f62740f2 100644
--- a/spec/queries/items_out_query_spec.rb
+++ b/spec/queries/items_out_query_spec.rb
@@ -11,6 +11,8 @@
       create(:transfer, :with_items, item_quantity: 8, item: items[0], to: other_storage_location, from: storage_location)
       create(:distribution, :with_items, item: items[1], item_quantity: 9, storage_location: storage_location)
       create(:adjustment, :with_items, item: items[2], item_quantity: -10, storage_location: storage_location)
+      kit = create(:kit, :with_item, organization: @organization)
+      create(:kit_allocation, :with_items, kit_allocation_type: "inventory_out", kit_id: kit.id, storage_location: storage_location, organization_id: @organization.id)
     end
 
     it "returns a collection with the fields name, item_id, quantity" do
@@ -19,8 +21,8 @@
       expect(subject.first).to be_respond_to(:item_id)
     end
 
-    it "includes distributions, adjustments, transfers among sources" do
-      expect(subject.to_a.size).to eq(3)
+    it "includes distributions, adjustments, transfers and kit_allocations among sources" do
+      expect(subject.to_a.size).to eq(4)
     end
   end
 end
diff --git a/spec/queries/items_out_total_query_spec.rb b/spec/queries/items_out_total_query_spec.rb
index abef6938ba..0a0970eba2 100644
--- a/spec/queries/items_out_total_query_spec.rb
+++ b/spec/queries/items_out_total_query_spec.rb
@@ -11,10 +11,12 @@
       create(:transfer, :with_items, item_quantity: 10, item: items[0], to: other_storage_location, from: storage_location)
       create(:distribution, :with_items, item: items[1], item_quantity: 10, storage_location: storage_location)
       create(:adjustment, :with_items, item: items[2], item_quantity: -10, storage_location: storage_location)
+      kit = create(:kit, :with_item, organization: @organization)
+      create(:kit_allocation, :with_items, kit_allocation_type: "inventory_out", kit_id: kit.id, storage_location: storage_location, organization_id: @organization.id)
     end
 
     it "returns a sum total of all out-flows" do
-      expect(subject).to eq(30)
+      expect(subject).to eq(31)
     end
   end
 end
diff --git a/spec/services/allocate_kit_inventory_service_spec.rb b/spec/services/allocate_kit_inventory_service_spec.rb
index b55b75b3a0..9c2c0bf9e8 100644
--- a/spec/services/allocate_kit_inventory_service_spec.rb
+++ b/spec/services/allocate_kit_inventory_service_spec.rb
@@ -74,8 +74,10 @@
         expect(inventory_out.line_items.first.item_id).to eq(kit.line_items.first.item_id)
         expect(inventory_out.line_items.first.quantity).to eq(kit.line_items.first.quantity * -increase_by)
 
-        # Check inventory in increased by number of kits allocated
-        expect(inventory_in.line_items.first.quantity).to eq(increase_by)
+        # Check that Inventory in increased by allocated kit's line_items and their respective quantities
+        expect(inventory_in.line_items.count).to eq(kit.line_items.count)
+        expect(inventory_in.line_items.first.item_id).to eq(kit.line_items.first.item_id)
+        expect(inventory_in.line_items.first.quantity).to eq(kit.line_items.first.quantity * increase_by)
 
         expect(service.error).to be_nil
       end
@@ -97,7 +99,7 @@
           expect(inventory_out.line_items.first.quantity).to eq(kit.line_items.first.quantity * -(increase_by + second_increase_by))
 
           # Check inventory in increase both time with increase_by value
-          expect(inventory_in.line_items.first.quantity).to eq(increase_by + second_increase_by)
+          expect(inventory_in.line_items.first.quantity).to eq(kit.line_items.first.quantity * (increase_by + second_increase_by))
         end
       end
 
@@ -133,13 +135,15 @@
             @second_call = AllocateKitInventoryService.new(kit: kit, storage_location: storage_location, increase_by: second_increase_by).allocate
           end
 
-          it "inventory out for that kit contains both line_items with their respective quantity" do
+          it "inventory in and out for that kit contains both line_items with their respective quantity" do
             expect(@first_call.error).to be_nil
             expect(@second_call.error).to be_nil
 
-            expect(inventory_in.line_items.first.quantity).to eq(increase_by + second_increase_by)
             expect(inventory_out.line_items[0].quantity).to eq(kit.line_items[0].quantity * -(increase_by + second_increase_by))
             expect(inventory_out.line_items[1].quantity).to eq(kit.line_items[1].quantity * -(increase_by + second_increase_by))
+
+            expect(inventory_in.line_items[0].quantity).to eq(kit.line_items[0].quantity * (increase_by + second_increase_by))
+            expect(inventory_in.line_items[1].quantity).to eq(kit.line_items[1].quantity * (increase_by + second_increase_by))
           end
         end
       end
diff --git a/spec/services/deallocate_kit_inventory_service_spec.rb b/spec/services/deallocate_kit_inventory_service_spec.rb
index 27855214e4..5d41bfd21c 100644
--- a/spec/services/deallocate_kit_inventory_service_spec.rb
+++ b/spec/services/deallocate_kit_inventory_service_spec.rb
@@ -67,7 +67,9 @@
         before do
           inventory_out.line_items.create!(item_id: item1.id, quantity: -1 * (quantity_of_items1 * decrease_by))
           inventory_out.line_items.create!(item_id: item2.id, quantity: -1 * (quantity_of_items2 * decrease_by))
-          inventory_in.line_items.create!(item_id: kit.item.id, quantity: decrease_by)
+
+          inventory_in.line_items.create!(item_id: item1.id, quantity: (quantity_of_items1 * decrease_by))
+          inventory_in.line_items.create!(item_id: item2.id, quantity: (quantity_of_items2 * decrease_by))
         end
 
         it "increases the quantity of the loose items contained in the kit and decrease kit quantity, and delete inventory_in and inventory_out" do
@@ -93,23 +95,29 @@
         before do
           inventory_out.line_items.create!(item_id: item1.id, quantity: -1 * (quantity_of_items1 * inventory_quantity))
           inventory_out.line_items.create!(item_id: item2.id, quantity: -1 * (quantity_of_items2 * inventory_quantity))
-          inventory_in.line_items.create!(item_id: kit.item.id, quantity: inventory_quantity)
+
+          inventory_in.line_items.create!(item_id: item1.id, quantity: (quantity_of_items1 * inventory_quantity))
+          inventory_in.line_items.create!(item_id: item2.id, quantity: (quantity_of_items2 * inventory_quantity))
         end
 
         it "will add items in inventory_out and remove kits for decrease_by from inventory_in" do
-          first_line_item_quantity_before = inventory_out.reload.line_items[0].quantity
-          second_line_item_quantity_before = inventory_out.reload.line_items[1].quantity
-          kit_quantity = inventory_in.reload.line_items.first.quantity
+          out_first_line_item_quantity_before = inventory_out.reload.line_items[0].quantity
+          out_second_line_item_quantity_before = inventory_out.reload.line_items[1].quantity
+
+          in_first_line_item_quantity_before = inventory_in.reload.line_items[0].quantity
+          in_second_line_item_quantity_before = inventory_in.reload.line_items[1].quantity
+
           service = DeallocateKitInventoryService.new(kit: kit, storage_location: storage_location, decrease_by: decrease_by).deallocate
 
           expect(service.error).to be_nil
 
           # inventoy out increased with decrease_by
-          expect(inventory_out.reload.line_items[0].quantity).to eq(first_line_item_quantity_before + (quantity_of_items1 * decrease_by))
-          expect(inventory_out.reload.line_items[1].quantity).to eq(second_line_item_quantity_before + (quantity_of_items2 * decrease_by))
+          expect(inventory_out.reload.line_items[0].quantity).to eq(out_first_line_item_quantity_before + (quantity_of_items1 * decrease_by))
+          expect(inventory_out.reload.line_items[1].quantity).to eq(out_second_line_item_quantity_before + (quantity_of_items2 * decrease_by))
 
           # invetory in decreased with decrease_by
-          expect(inventory_in.reload.line_items.first.quantity).to eq(kit_quantity - decrease_by)
+          expect(inventory_in.reload.line_items[0].quantity).to eq(in_first_line_item_quantity_before - (quantity_of_items1 * decrease_by))
+          expect(inventory_in.reload.line_items[1].quantity).to eq(in_second_line_item_quantity_before - (quantity_of_items2 * decrease_by))
         end
       end
 
@@ -117,7 +125,9 @@
         before do
           inventory_out.line_items.create!(item_id: item1.id, quantity: -1 * quantity_of_items1)
           inventory_out.line_items.create!(item_id: item2.id, quantity: -1 * quantity_of_items2)
-          inventory_in.line_items.create!(item_id: kit.item.id, quantity: 1)
+
+          inventory_in.line_items.create!(item_id: item1.id, quantity: quantity_of_items1)
+          inventory_in.line_items.create!(item_id: item2.id, quantity: quantity_of_items2)
         end
 
         it "raises error about inconsistent inventory in or out" do