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STOCK ADJUSTMENT

Stock Adjustments

Stock Adjustments allow you to manually increase or decrease inventory when stock changes occur outside of normal purchasing or sales transactions.

Every adjustment is recorded in an audit trail, ensuring complete inventory traceability.

Common reasons for stock adjustments include:

  • Damaged products

  • Expired products

  • Shrinkage

  • Theft or loss

  • Stock count shortages

  • Stock count overages

  • Newly found stock

  • Transfer losses

Creating a Stock Adjustment

  1. Go to Stock → Stock Adjustments.

  2. Click New Adjustment.

  3. Complete the adjustment details.

  4. Click Post Adjustment.

Adjustment Details

Location

Select the business location where the inventory adjustment applies.

Reason

Choose the reason for the adjustment.

Available reasons include:

  • Damaged

  • Expired

  • Shrinkage

  • Theft / Loss

  • Count Short

  • Count Over

  • Found Stock

  • Transfer Loss

The selected reason is stored with the adjustment and can be used for reporting and auditing.

Note / Explanation

Optionally enter additional information describing why the adjustment was required.

Examples:

  • Stock damaged during transport.

  • Items expired during monthly inspection.

  • Annual stock count correction.

  • Products lost during warehouse transfer.

Evidence (Optional)

You may attach supporting evidence for the adjustment.

Supported examples include:

  • Photos of damaged products

  • Count sheets

  • Supplier reports

  • Inspection reports

  • PDF documents

Maximum file size: 10 MB

Adding evidence helps maintain a complete audit trail and supports future reviews.

Adding Products

Each adjustment can contain one or more products.

For every product, specify:

  • Product

  • Adjustment Direction

  • Quantity

  • Unit Cost

Click Add Line to include additional products in the same adjustment.

Adjustment Direction

Choose how the stock should be adjusted.

Decrease

Removes stock from inventory.

Common uses:

  • Damaged products

  • Expired products

  • Theft

  • Shrinkage

  • Count shortages

Increase

Adds stock to inventory.

Common uses:

  • Stock count overages

  • Newly found stock

  • Inventory corrections

Unit Cost

The Unit Cost is used to calculate the total inventory value affected by the adjustment.

This value is used when calculating inventory losses and recoveries for reporting purposes.

Posting the Adjustment

After posting:

  • Inventory quantities are updated immediately.

  • The adjustment becomes part of the inventory audit trail.

  • The stock movement appears in Product Stock History.

  • The adjustment is included in inventory and financial reports.

Viewing Stock Adjustments

All adjustments can be viewed from:

Stock → Stock Adjustments

The list displays:

  • Reference Number

  • Date

  • Business Location

  • Reason

  • Recovered Amount

  • User who posted the adjustment

  • Attached Evidence

  • Status

Reversing an Adjustment

If an adjustment was entered incorrectly, click Reverse from the adjustment list.

Reversing an adjustment:

  • Restores the affected inventory quantities.

  • Preserves the original adjustment for audit purposes.

  • Creates a complete history of both the original adjustment and its reversal.

Note: Reversing an adjustment is recommended instead of deleting it, as it maintains a complete audit trail.

Best Practices

  • Record stock discrepancies as soon as they are discovered.

  • Select the most appropriate adjustment reason for accurate reporting.

  • Attach supporting evidence whenever possible.

  • Use Decrease for inventory write-offs and Increase for inventory corrections or newly discovered stock.

  • Reverse incorrect adjustments instead of creating compensating entries whenever possible.

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