diff --git a/app/models/concerns/itemizable.rb b/app/models/concerns/itemizable.rb
index 5c99a490b6..a24ec13186 100644
--- a/app/models/concerns/itemizable.rb
+++ b/app/models/concerns/itemizable.rb
@@ -63,8 +63,8 @@ def total
   end
 
   def line_items_quantities
-    line_items.inject(Hash.new) do |hash, item|
-      hash[item.id] = item.quantity
+    line_items.inject(Hash.new) do |hash, line_item|
+      hash[line_item.id] = OpenStruct.new(quantity: line_item.quantity, item_id: line_item.item_id)
       hash
     end
   end
diff --git a/app/models/storage_location.rb b/app/models/storage_location.rb
index 672ccbd5cb..ae0c9f804c 100644
--- a/app/models/storage_location.rb
+++ b/app/models/storage_location.rb
@@ -101,16 +101,25 @@ def remove!(donation_or_purchase)
     log
   end
 
-  def adjust_from_past!(donation_or_purchase, previous_quantities)
+  def adjust_from_past!(donation_or_purchase, previous_line_item_values)
     donation_or_purchase.line_items.each do |line_item|
       inventory_item = InventoryItem.find_or_create_by(storage_location_id: self.id, item_id: line_item.item_id)
-      if previous_quantity = previous_quantities[line_item.id]
+      # If the item wasn't deleted by the user, then it will be present to be deleted
+      # here, and delete returns the item as a return value.
+      if previous_line_item_value = previous_line_item_values.delete(line_item.id)
         inventory_item.quantity += line_item.quantity
-        inventory_item.quantity -= previous_quantity
+        inventory_item.quantity -= previous_line_item_value.quantity
         inventory_item.save!
       end
       inventory_item.destroy! if inventory_item.quantity == 0
     end
+    # Update storage for line items that are no longer persisted because they
+    # were removed durring the updated/delete process.
+    previous_line_item_values.values.each do |value|
+      inventory_item = InventoryItem.find_or_create_by(storage_location_id: self.id, item_id: value.item_id)
+      inventory_item.decrement!(:quantity, value.quantity)
+      inventory_item.destroy! if inventory_item.quantity == 0
+    end
   end
 
   def distribute!(distribution)
diff --git a/spec/controllers/donations_controller_spec.rb b/spec/controllers/donations_controller_spec.rb
index 7ca69279c2..e10cb8d6d5 100644
--- a/spec/controllers/donations_controller_spec.rb
+++ b/spec/controllers/donations_controller_spec.rb
@@ -69,6 +69,41 @@
           put :update, params: default_params.merge(id: donation.id, donation: donation_params)
         }.to change { donation.storage_location.inventory_items.first.quantity }.by(5)
       end
+
+      describe "when removing a line item" do
+        it "updates storage invetory item quantity correctly" do
+          donation = create(:donation, :with_items, item_quantity: 10)
+          line_item = donation.line_items.first
+          line_item_params = {
+            "0" => {
+              "_destroy" => "true",
+              item_id: line_item.item_id,
+              id: line_item.id
+            }
+          }
+          donation_params = { source: "Donation Site", line_items_attributes: line_item_params }
+          expect {
+            put :update, params: default_params.merge(id: donation.id, donation: donation_params)
+          }.to change { donation.storage_location.inventory_items.first.quantity }.by(-10)
+        end
+
+        it "deletes inventory item if line item and inventory item quantities are equal" do
+          donation = create(:donation, :with_items, item_quantity: 1)
+          line_item = donation.line_items.first
+          inventory_item = donation.storage_location.inventory_items.first
+          inventory_item.update(quantity: line_item.quantity)
+          line_item_params = {
+            "0" => {
+              "_destroy" => "true",
+              item_id: line_item.item_id,
+              id: line_item.id
+            }
+          }
+          donation_params = { source: "Donation Site", line_items_attributes: line_item_params }
+          put :update, params: default_params.merge(id: donation.id, donation: donation_params)
+          expect { inventory_item.reload }.to raise_error(ActiveRecord::RecordNotFound)
+        end
+      end
     end
 
     describe "GET #edit" do
diff --git a/spec/controllers/purchases_controller_spec.rb b/spec/controllers/purchases_controller_spec.rb
index 4898ea3dd7..ada75401c6 100644
--- a/spec/controllers/purchases_controller_spec.rb
+++ b/spec/controllers/purchases_controller_spec.rb
@@ -70,6 +70,41 @@
           put :update, params: default_params.merge(id: purchase.id, purchase: purchase_params)
         }.to change { purchase.storage_location.inventory_items.first.quantity }.by(-5)
       end
+
+      describe "when removing a line item" do
+        it "updates storage invetory item quantity correctly" do
+          purchase = create(:purchase, :with_items, item_quantity: 10)
+          line_item = purchase.line_items.first
+          line_item_params = {
+            "0" => {
+              "_destroy" => "true",
+              item_id: line_item.item_id,
+              id: line_item.id
+            }
+          }
+          purchase_params = { source: "Purchase Site", line_items_attributes: line_item_params }
+          expect {
+            put :update, params: default_params.merge(id: purchase.id, purchase: purchase_params)
+          }.to change { purchase.storage_location.inventory_items.first.quantity }.by(-10)
+        end
+
+        it "deletes inventory item if line item and inventory item quantities are equal" do
+          purchase = create(:purchase, :with_items, item_quantity: 1)
+          line_item = purchase.line_items.first
+          inventory_item = purchase.storage_location.inventory_items.first
+          inventory_item.update(quantity: line_item.quantity)
+          line_item_params = {
+            "0" => {
+              "_destroy" => "true",
+              item_id: line_item.item_id,
+              id: line_item.id
+            }
+          }
+          purchase_params = { source: "Purchase Site", line_items_attributes: line_item_params }
+          put :update, params: default_params.merge(id: purchase.id, purchase: purchase_params)
+          expect { inventory_item.reload }.to raise_error(ActiveRecord::RecordNotFound)
+        end
+      end
     end
 
     describe "GET #edit" do