Creating Inventory Adjustment

Creating an inventory adjustment involves mentioning the key details, such as the store, item number, adjustment date, adjustment account, and reason code. You can then select the adjustment type, adjustment location, and quantity.

To create an inventory adjustment, go to Menu > Inventory > Inventory Adjustment > Create Inventory Adjustment

Inventory Adjustment Header Fields

Field	Description
Store	This field allows you to select the store for which the inventory is being changed.
Item Number	This field allows you to select the item for the inventory adjustment.
Adjustment Date	Select the date of the inventory adjustment here.
Adjustment Account	Select the account for the inventory adjustment.
Memo	This field allows you to enter any additional information or notes related to the inventory adjustment.
Reason Code	This field allows you to enter the reason code for changing the inventory. The default reason codes are: “FI” for found inventory, "DMG" for damaged inventory, and "NF" for inventory not found. Click here to know more about reason codes.
Ref#	Enter a reference number for the inventory adjustment for easy tracking.
Adjustment Type	Select the the adjustment type here: Quantity: Choose this option if you need to adjust the number of items in inventory without affecting their total value. This adjustment is typically used for correcting discrepancies in item counts. Value: Use this option to adjust the total value of the inventory for a particular item without changing the quantity. This might be used in cases where the value of existing inventory has changed due to factors like market shifts or currency exchange rates. Quantity & Value: This option allows you to adjust both the quantity and the total value of the inventory simultaneously. It's useful for situations where both the count and the value of items need to be corrected.

Be mindful of the Adjustment Account and the Adjustment Date while performing an adjustment.

Depending on the adjustment type, you can make the inventory adjustment.

Adjust By Quantity/Adjust By Quantity & Value

When creating a quantity adjustment, you will begin by selecting the location and the updated item quantity. You can additionally specify the LPN#, Batch#, Lot#, Manufacture Date, Expiry Date, and Quality. However, providing these details is optional.

Adjust By Quantity Detail Fields

Field	Description
Add New Location	Click this button to add a new quantity to a new location.
New Location	Select the location at which you want to add the inventory.
New Qty	Enter the new item quantity.
To LPN#	This field allows you to enter the LPN at which you want to add the inventory.
Manufacture Date	This field allows you to enter the manufacture date of the item.
Batch#	This field allows you to enter the batch number of the item.
Lot#	This field allows you to enter the lot number of the item.
Expiry Date	This field allows you to add the expiry date of the item.
Quality	This field allows you to select the item quality from the available options. You can add the quality fro the "Item Quality" module.

After adding the location and quantity details, click "Add". The item line will be populated in the details section.

Inventory Adjustment Details Fields

Field	Description
Store	This field displays the store for teh inventory adjustment.
Item Number	This field displays the unique identifier for the item whose inventory is being adjusted.
Location	The precise location within the store or warehouse where the item is stored.
Class	This field shows the class or category that the item belongs to,
Type	This field shows the location type.
UOM	This field displays the unit of measurement for the inventory item, such as pieces, kilograms, liters, etc.
UPC	This field shows the UPC (Universal Product Code) for the item.
On Hand	This field defines the on hand inventory of the item.
Allocated	This field defines the allocated inventory for the item.
Net Available	This field defines the net available inventory for the item.
New Qty	This field specifies the adjusted quantity for an item at a particular location. This is the updated count after an inventory adjustment has been made.
Diff	This field displays the difference between the original and new quantities. A positive number indicates an addition to inventory, while a negative number indicates a reduction. For example, if you enter "10" here, 10 units will be added to the item inventory, and if you enter "-5" here, 5 units will be depleted from the item inventory.
Action	Click on the "Bin" icon under this column to delete the adjustment line.
Quality	This field displays the item quality selected when adding the item quantity.
LPN#	This field shows the LPN number for the adjustment.
Manufacture Date	This field shows the manufacture date of the item.
Expiry Date	This field shows the expiry date of the item.
Lot#	This field shows the lot number of the item.
Batch#	This field shows the batch number of the item.

Adjust By Value

When creating a value adjustment, you will start by defining either the new value of the item or the difference between the new value and the current value.

Adjust by Value Fields

Field	Description
Item Number	This field shows the item number.
Total Asset Value	This field shows the total asset value of the item.
New Value	This field allows you to enter the new total asset value of the item.
Diff	This field allows you to enter the difference between the new asset value and the current asset value (New Value – Total Asset Value).

Once all the inventory adjustment details have been filled in, click on "Adjust Inventory" at the top right corner to create the inventory adjustment.

Adjustment Summary

The adjustment summary section displays the inventory adjustment details such as the original asset value, original on hand inventory, and the value and quantity adjustment.

Reversing/Deleting an Inventory Adjustment

It is not possible to delete an Inventory Adjustment. It can only be reversed by a subsequent Inventory Adjustment. Reversing an Inventory Adjustment is simply creating another Adjustment to the one already created.

There are two ways to reverse an inventory adjustment:

From the Inventory Adjustment module

To Reverse an Inventory Adjustment from the Inventory Adjustment module follow the steps below:

1. Navigate to the ‘Inventory Adjustment’ module and select the ‘Store’, ‘Item Number’, and ‘Reason Code.

1. Now, under the ‘Diff’ column choose by what quantity you want to adjust the inventory. You can make a positive or negative adjustment here. Refer to the explanation below for this:

Negative Adjustment:

Assume the following scenario: You have an item “Wireless Keyboard” in your inventory of which you had 100 units. You made the inventory adjustment to increase the quantity by ’10’ units, and now you want to reverse it.

So, now, you have to make a negative adjustment. In this case, under the column ‘Diff’, you will enter the Difference Quantity as “-10”.

• Quantity after the initial Inventory Adjustment= 110

• To reverse the adjustment, the ‘Diff’ quantity= -10

• Quantity after the Reverse Inventory Adjustment= 100 (110-10)

Please remember, if you want to reverse the adjustment or decrease the inventory, you have to put in a negative value.

Positive Adjustment:

If you had depleted the inventory before and now want to increase the inventory, under the ‘Diff’ column put the amount by which you want to increase the inventory. This is called a positive inventory adjustment.

• Similar to the above scenario, let's assume you have an item “Wireless Keyboard” in your inventory of which you had 100 units. You made the inventory adjustment to decrese the quantity by ’10’ units, and now you want to reverse it.

  So, now, you have to make a positive adjustment. In this case, under the column ‘Diff’, you will enter the Difference Quantity as “10”.

  • Quantity after the initial Inventory Adjustment= 90

  • To reverse the adjustment, the ‘Diff’ quantity= 10

  • Quantity after the Reverse Inventory Adjustment= 100 (90+10)

1. The ‘New Qty’ column will display the new quantity as per the adjustment by adding or subtracting the ‘Diff’ value from the ‘Net Available’ value.

   

   
2. Click on ‘Adjust Inventory’ to save your changes.

From the Batch Upload Inventory module

You can use the Batch Upload Inventory module to batch delete/update the Inventory.

1. Navigate to the Upload Inventory module and download the template.

1. Add the inventory information to the CSV template.

2. Upload the file to reverse the inventory adjustment. Here also, you can make a positive or negative adjustment. When decreasing the inventory, you have to put a negative value under the column, ‘Qty’ in the CSV file.

Note: Use the Delta Rule to decrease the inventory.

• Delta Rule Behavior: This rule increments or decrements the quantity for a particular Item. For example, entering 1 here increases the current inventory in the system on that location by 1. Likewise, putting -1 decreases the current inventory in the system on that location by -1.

  
• Sync Rule Behavior: This rule increments or decrements the final quantity for a particular item. For example, if you have an item with 100 units and you want to increase the inventory by 10 units, entering 110 in the ‘Net Available’ quantity increases the inventory by 10 units. Likewise, adding 90 in the ‘Net Available’ quantity decreases the inventory by 10 units.

**Sync Rule does not work on back-dated adjustments.