datardatar

⚖️ Stock Adjustments

Manage inventory adjustments to correct stock levels, account for losses, and maintain accurate inventory records with full audit trails.

Overview

What are Stock Adjustments?

Stock adjustments are modifications to inventory quantities that correct discrepancies between system records and actual physical inventory. They ensure your inventory data remains accurate and reflects real-world conditions.

All adjustments are tracked with detailed audit trails, including reasons, timestamps, and user information to maintain transparency and accountability in inventory management.

Key Features
• Multiple adjustment types and reasons
• Approval workflows for large adjustments
• Complete audit trail and documentation
• Bulk adjustment capabilities
• Financial impact tracking
• Integration with cycle counting

Adjustment Types

  1. 📊
    Physical Count Adjustments
    Correct inventory based on physical verification
    Common Reasons
    • Cycle count discrepancies
    • Annual inventory verification
    • Spot check corrections
    • Audit requirement compliance
    Impact
    Updates stock levels to match physical reality
  2. 💔
    Damage & Loss Adjustments
    Account for damaged, lost, or unusable inventory
    Common Reasons
    • Product damage during handling
    • Expiration or obsolescence
    • Theft or loss
    • Quality control failures
    Impact
    Removes unusable stock from active inventory
  3. 📋
    Write-offs & Write-ons
    Financial adjustments for accounting purposes
    Common Reasons
    • Insurance claim settlements
    • Supplier credits and debits
    • Warranty replacements
    • Promotional give-aways
    Impact
    Adjusts both inventory levels and financial records
  4. 🔄
    Transfer Corrections
    Fix errors in inter-location transfers
    Common Reasons
    • Incorrect transfer quantities
    • Wrong destination locations
    • Timing discrepancies
    • Transit loss or damage
    Impact
    Corrects stock distribution across locations

Adjustment Process

Follow these steps to create and process inventory adjustments systematically.

Detect and document the inventory variance

1
Perform physical count or verification
2
Compare with system quantities
3
Document discrepancy details
4
Identify probable causes
5
Gather supporting evidence
💡 Pro Tip
Always investigate the root cause before making adjustments

Initiate the adjustment in the system

1
Navigate to Inventory > Adjustments
2
Select adjustment type and reason
3
Choose affected items and locations
4
Enter adjustment quantities
5
Add detailed notes and reference
💡 Pro Tip
Include reference numbers for traceability

Verify adjustment details before processing

1
Review all adjustment details
2
Verify quantities and calculations
3
Check approval requirements
4
Submit for approval if required
5
Process approved adjustments
💡 Pro Tip
Large adjustments may require management approval

Track the effects of the adjustment

1
Verify stock levels updated correctly
2
Check financial impact if applicable
3
Update reorder points if needed
4
Monitor for recurring issues
5
Document lessons learned
💡 Pro Tip
Regular adjustments may indicate process issues

Common Adjustment Reasons

Understanding common reasons for inventory adjustments helps identify patterns and implement preventive measures to reduce the need for future adjustments.

Counting Errors
• Miscounting
• Data entry errors
• Unit conversion mistakes
Physical Issues
• Damage
• Theft
• Spoilage/Expiration
• Loss
System Issues
• Software errors
• Failed transactions
• Data corruption
Process Issues
• Unreported usage
• Transfer errors
• Receiving mistakes

Approval Workflows

Adjustment Approval Requirements

Large adjustments or specific adjustment types may require management approval to maintain inventory control and prevent unauthorized changes.

Automatic Approval
  • Small quantity adjustments (under threshold)
  • Routine cycle count corrections
  • Minor damaged goods write-offs
  • Standard operational adjustments
Requires Approval
  • Large quantity or value adjustments
  • High-value item write-offs
  • Suspicious or unusual adjustments
  • Cross-location adjustments

Best Practices

✅ Recommended Practices
• Always investigate root causes first
• Document all adjustments with detailed notes
• Use specific adjustment reason codes
• Implement approval thresholds
• Regular cycle counting to minimize large adjustments
• Train staff on proper counting procedures
❌ Avoid These Mistakes
• Making adjustments without investigation
• Adjusting to hide operational problems
• Inconsistent adjustment procedures
• Bypassing approval processes
• Not documenting adjustment reasons
• Ignoring patterns in adjustment data

Troubleshooting

Adjustments may be pending approval or have processing errors.
Check if adjustment requires approval
Verify adjustment status in the system
Ensure you have permissions for the location
Review any error messages or warnings
Item or location restrictions may prevent adjustments.
Check if item is locked or on hold
Verify location permissions
Ensure item is active and not archived
Review adjustment type restrictions
Recurring adjustments may indicate underlying process issues.
Analyze adjustment patterns and reasons
Review counting and handling procedures
Check for system integration issues
Consider process improvements or training

Was this documentation helpful?