Inventory Adjustment Reason Codes

The Inventory Adjustment module is typically used in cases of discrepancies in the inventory to balance the on-hand inventory with the system. It can be used to increase or decrease the inventory of an item. When we increase the inventory, it is called a positive adjustment, and when we decrease the inventory, it is known as a negative adjustment.

There are Reason Codes associated with each inventory adjustment. These essentially depict the reason for changing the inventory.

In Xoro, there are 3 reason codes by default:

1. DMG (or Damaged): This code is used when inventory is damaged and hence not sellable. Hence, we need to pull the inventory out of the system. As such, this code is used when inventory is decreased.

2. FI (or Found Inventory): This code is used when you have more inventory than recorded in the system and thus, you need to add inventory into the system.

3. NF (or No-Find): This code is used when you have less inventory on hand than recorded in the system. As such, when decreasing the inventory NF code is used to indicate that inventory could not be found.

However, the reason for Inventory Adjustment might not be limited to these 3 codes. For instance, you might be making a negative adjustment because some of your items have expired. In that case, you can also create your own Reason Codes for Inventory Adjustment in the system.

Creating an Inventory Adjustment Reason Code

Creating an inventory adjustment reason code involves registering the name, code and description of the reason code.

To create the Inventory Adjustment Reason Code, go to Menu > Admin > Inventory Adjustment Reason Code

Inventory Adjustment Reason Code Fields

Field	Description
Name	Give a name to the reason code here.
Code	Enter the code to associate with the reason code.
Description	Enter the description for the reason code.

After filling in the details, click on "Save" to save the reason code.

The Inventory Adjustment Reason Code Centre lists all the reason codes created in the system.