Stock Adjustments

Stock Adjustments record changes to inventory quantities that occur outside of normal sales, purchases, and transfers.

Overview

Stock Adjustments enable you to:

• Correct inventory discrepancies
• Record damaged goods
• Account for shrinkage
• Document write-offs
• Track adjustment reasons
• Maintain accurate stock levels

Accessing Stock Adjustments

Navigate to Inventory → Stock Adjustments from the main menu.

Adjustment List

Viewing Adjustments

Stock Adjustments

Filter: [All Adjustments ▼] [Type ▼] [Date Range ▼]

┌────────────────────────────────────────────────────────────────┐
│ Adjustment   │ Date      │ Type       │ Items │ Net Qty│Status │
├────────────────────────────────────────────────────────────────┤
│ ADJ-2026-089│ Jan 22    │ Cycle Count│ 45    │ -12    │Posted │
│ ADJ-2026-085│ Jan 20    │ Damage     │ 3     │ -3     │Posted │
│ ADJ-2026-078│ Jan 18    │ Write-off  │ 8     │ -8     │Posted │
│ ADJ-2026-065│ Jan 15    │ Found Stock│ 2     │ +2     │Posted │
│ ADJ-2026-045│ Jan 10    │ Shrinkage  │ 15    │ -15    │Posted │
└────────────────────────────────────────────────────────────────┘

This Month: 89 adjustments (-156 units, -$4,567.89)
Showing 1-5 of 89 adjustments

[+ New Adjustment]

Adjustment Types

Available Types

Type	Direction	Description
Cycle Count	+/-	Physical count reconciliation
Damage	-	Damaged goods removed
Shrinkage	-	Unexplained loss
Write-off	-	Obsolete or expired
Found Stock	+	Previously unaccounted inventory
Correction	+/-	Data entry error fix
Production	+/-	Manufacturing adjustments
Sample	-	Samples given out
Internal Use	-	Used internally

Creating Adjustments

New Stock Adjustment

1. Click New Adjustment
2. Select adjustment type
3. Choose location
4. Add items and quantities
5. Submit adjustment

Adjustment Form

New Stock Adjustment

Adjustment Details:
├─ Adjustment Number: ADJ-2026-090 (auto)
├─ Adjustment Date: [01/23/2026]
└─ Reference: [_________________________]

Type:
[Select Type ▼]
├─ Cycle Count Variance
├─ Damaged Goods
├─ Shrinkage/Loss
├─ Write-off (Obsolete)
├─ Found Stock
├─ Error Correction
├─ Sample/Demo
└─ Internal Use

Location:
[Select Location ▼]
├─ Main Warehouse
├─ East Branch
├─ West Branch
└─ All Bins

Reason/Notes:
[                                                    ]
[                                                    ]

[Cancel] [Continue to Items]

Adding Adjustment Items

Add Items to Adjustment: ADJ-2026-090

Type: Cycle Count Variance
Location: Main Warehouse

Search Products: [_________________________] [Search]

Product Stock:
┌────────────────────────────────────────────────────────────┐
│ Product          │ SKU         │ System │ Actual │ Variance│
├────────────────────────────────────────────────────────────┤
│ Widget Pro       │ WDG-PRO-001 │ 156    │ [154]  │ -2      │
│ Gadget Plus      │ GDG-PLS-001 │ 89     │ [89]   │ 0       │
│ Cable Kit        │ CBL-KIT-001 │ 234    │ [230]  │ -4      │
│ Power Supply     │ PWR-SUP-001 │ 67     │ [70]   │ +3      │
└────────────────────────────────────────────────────────────┘

Adjustment Summary:
├─ Items with Variance: 3
├─ Total Increase: +3 units
├─ Total Decrease: -6 units
├─ Net Change: -3 units
└─ Value Impact: -$189.97

[Back] [Save as Draft] [Submit Adjustment]

Adjustment Details

Viewing Adjustment

Stock Adjustment: ADJ-2026-089

Adjustment Information:
├─ Adjustment Number: ADJ-2026-089
├─ Status: Posted
├─ Type: Cycle Count Variance
├─ Date: January 22, 2026
├─ Location: Main Warehouse
├─ Created By: John Smith
└─ Posted By: Mary Johnson

Adjustment Items:
┌────────────────────────────────────────────────────────────┐
│ Product          │ SKU         │ Before │ After │ Variance│
├────────────────────────────────────────────────────────────┤
│ Widget Pro       │ WDG-PRO-001 │ 156    │ 154   │ -2      │
│ Cable Kit        │ CBL-KIT-001 │ 234    │ 230   │ -4      │
│ Power Supply     │ PWR-SUP-001 │ 67     │ 70    │ +3      │
│ ...              │ ...         │ ...    │ ...   │ ...     │
├────────────────────────────────────────────────────────────┤
│ Total:                                          │ -12     │
└────────────────────────────────────────────────────────────┘

Financial Impact:
├─ Increase Value: +$164.97
├─ Decrease Value: -$479.94
└─ Net Value Change: -$314.97

Reason: Quarterly cycle count - variances discovered in Aisle A

[Print] [Reverse Adjustment]

Cycle Count Adjustments

Cycle Count Process

Cycle Count: Main Warehouse - Aisle A

Count Date: January 22, 2026
Counted By: John Smith

Location: Aisle A (Bins A-01 through A-10)

Count Entry:
┌────────────────────────────────────────────────────────────┐
│ Bin     │ Product          │ System │ Count │ Variance    │
├────────────────────────────────────────────────────────────┤
│ A-01-01 │ Widget Pro       │ 50     │ [48]  │ -2          │
│ A-01-02 │ Widget Basic     │ 75     │ [75]  │ 0           │
│ A-02-01 │ Gadget Plus      │ 30     │ [30]  │ 0           │
│ A-02-02 │ Gadget Basic     │ 45     │ [47]  │ +2          │
│ A-03-01 │ Cable Kit        │ 100    │ [96]  │ -4          │
└────────────────────────────────────────────────────────────┘

Count Progress: 5 of 45 bins counted (11%)

[Save Progress] [Complete Section] [Cancel Count]

Variance Analysis

Cycle Count Variance Analysis

Count: ADJ-2026-089
Location: Main Warehouse

Variance Summary:
├─ Items Counted: 245
├─ Items with Variance: 45 (18%)
├─ Total Positive Variance: +23 units
├─ Total Negative Variance: -35 units
└─ Net Variance: -12 units

Variance by Category:
┌────────────────────────────────────────────────────────────┐
│ Category         │ Counted │ Variance │ % Variance │ Value │
├────────────────────────────────────────────────────────────┤
│ Electronics      │ 89      │ -8       │ 0.9%       │ -$456 │
│ Office Supplies  │ 78      │ -3       │ 0.4%       │ -$45  │
│ Industrial       │ 45      │ +2       │ 0.4%       │ +$89  │
│ Accessories      │ 33      │ -3       │ 0.9%       │ -$23  │
└────────────────────────────────────────────────────────────┘

Largest Variances:
├─ Widget Pro: -5 units (-$399.95)
├─ Premium Cable: -4 units (-$199.96)
└─ Power Supply: +3 units (+$164.97)

[Export Analysis] [Create Adjustment]

Damage Adjustments

Recording Damaged Goods

Damage Adjustment

Adjustment Type: Damaged Goods

Damage Details:
├─ Damage Date: [01/22/2026]
├─ Discovered By: [________________]
├─ Damage Cause: [Select ▼]
│  ├─ Shipping Damage
│  ├─ Handling Damage
│  ├─ Water Damage
│  ├─ Manufacturing Defect
│  └─ Other

Damaged Items:
┌────────────────────────────────────────────────────────────┐
│ Product          │ SKU         │ Qty │ Bin     │ Condition │
├────────────────────────────────────────────────────────────┤
│ Widget Pro       │ WDG-PRO-001 │ [2] │ A-01-01 │ [Broken]  │
│ Gadget Plus      │ GDG-PLS-001 │ [1] │ A-02-03 │ [Dented]  │
└────────────────────────────────────────────────────────────┘

Disposition:
○ Write off (remove from inventory)
○ Move to damaged goods location
○ Return to supplier

Documentation:
[Upload Photos] damage_photo_1.jpg attached

Insurance Claim:
[ ] File insurance claim
    Claim Reference: [________________]

[Cancel] [Submit Damage Report]

Write-off Adjustments

Recording Write-offs

Write-off Adjustment

Adjustment Type: Write-off (Obsolete/Expired)

Write-off Reason:
[Select Reason ▼]
├─ Product Obsolete
├─ Product Expired
├─ Quality Issues
├─ Regulatory Requirement
└─ Other

Items to Write Off:
┌────────────────────────────────────────────────────────────┐
│ Product          │ SKU         │ Qty │ Cost    │ Reason    │
├────────────────────────────────────────────────────────────┤
│ Widget v1 (Old)  │ WDG-V1-001  │ [45]│ $899.55 │ Obsolete  │
│ Battery Pack     │ BAT-PKG-001 │ [20]│ $159.80 │ Expired   │
│ Component XY     │ CMP-XY-001  │ [12]│ $96.00  │ Defective │
└────────────────────────────────────────────────────────────┘

Total Write-off Value: $1,155.35

Approval:
├─ Approval Required: Yes (value > $500)
├─ Approver: [Select Approver ▼]
└─ Justification:
   [                                                    ]

[Cancel] [Submit for Approval]

Adjustment Approval

Approval Workflow

Adjustment Approval: ADJ-2026-090

Adjustment Summary:
├─ Type: Write-off
├─ Items: 77 products
├─ Value: $1,155.35
├─ Requested By: John Smith
└─ Date: January 23, 2026

Approval Threshold:
├─ Reason: Value exceeds $500
└─ Required Approver: Inventory Manager

Review Items:
┌────────────────────────────────────────────────────────────┐
│ Product          │ Qty │ Value   │ Reason    │ Verify     │
├────────────────────────────────────────────────────────────┤
│ Widget v1 (Old)  │ 45  │ $899.55 │ Obsolete  │ [x] OK     │
│ Battery Pack     │ 20  │ $159.80 │ Expired   │ [x] OK     │
│ Component XY     │ 12  │ $96.00  │ Defective │ [ ] Review │
└────────────────────────────────────────────────────────────┘

Approval Decision:
○ Approve adjustment
○ Reject adjustment
○ Partial approval

Comments:
[                                                    ]

[Reject] [Approve]

Adjustment Reports

Adjustment Summary Report

Stock Adjustment Report

Date Range: January 1 - January 22, 2026

Summary by Type:
┌────────────────────────────────────────────────────────────┐
│ Type            │ Count │ Items  │ Net Qty │ Value Impact │
├────────────────────────────────────────────────────────────┤
│ Cycle Count     │ 12    │ 456    │ -45     │ -$1,234.56   │
│ Damage          │ 8     │ 23     │ -23     │ -$567.89     │
│ Write-off       │ 5     │ 89     │ -89     │ -$2,345.67   │
│ Found Stock     │ 3     │ 12     │ +12     │ +$345.67     │
│ Shrinkage       │ 6     │ 34     │ -34     │ -$890.12     │
├────────────────────────────────────────────────────────────┤
│ Total           │ 34    │ 614    │ -179    │ -$4,692.57   │
└────────────────────────────────────────────────────────────┘

[Export Report]

Shrinkage Analysis

Inventory Shrinkage Analysis

Period: January 2026

Shrinkage Summary:
├─ Total Shrinkage: 179 units
├─ Shrinkage Value: $4,692.57
├─ Shrinkage Rate: 0.8% of inventory
└─ vs Last Month: +0.1%

By Location:
┌────────────────────────────────────────────────────────────┐
│ Location         │ Units    │ Value     │ Rate   │ Trend  │
├────────────────────────────────────────────────────────────┤
│ Main Warehouse   │ 89       │ $2,345.67 │ 0.6%   │ ↓      │
│ East Branch      │ 45       │ $1,234.56 │ 1.2%   │ ↑      │
│ West Branch      │ 23       │ $678.90   │ 0.8%   │ →      │
│ Retail Store     │ 22       │ $433.44   │ 1.5%   │ ↑      │
└────────────────────────────────────────────────────────────┘

⚠️ East Branch and Retail Store exceed target (1.0%)

Best Practices

Accurate Adjustments

• Document reasons thoroughly
• Include supporting evidence
• Use correct adjustment types
• Verify quantities carefully

Cycle Counting

• Count regularly (ABC analysis)
• Use blind counts when possible
• Investigate large variances
• Train counters properly

Damage Handling

• Report immediately
• Photograph damage
• Segregate damaged goods
• File claims promptly

Write-offs

• Follow approval process
• Document justification
• Consider tax implications
• Archive records

Troubleshooting

Common Issues

Adjustment not posting

• Check approval status
• Verify user permissions
• Review validation errors
• Check inventory locks

Variance unexplained

• Review recent transactions
• Check for pending orders
• Verify bin locations
• Look for data entry errors

Cannot reverse adjustment

• Check reversal period
• Verify permissions
• Contact administrator
• Create offsetting adjustment

Approval stuck

• Check approver availability
• Escalate if needed
• Review threshold settings
• Contact system admin

Related Documentation

Learn about Stock Transfers for moving inventory between locations.