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.
Inventory Adjustment Header Fields
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.
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
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
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
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:
Navigate to the ‘Inventory Adjustment’ module and select the ‘Store’, ‘Item Number’, and ‘Reason Code.
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)
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)
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.
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.
Navigate to the Upload Inventory module and download the template.
Add the inventory information to the CSV template.
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.
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.
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