# Inventory Adjustment

An Inventory Adjustment manually corrects stock on hand to match physical reality — covering gains (more stock than recorded) and losses (damage, theft, shrinkage, counting errors). When approved, an adjustment updates stock at the chosen center and posts the value to your inventory and an offset account.

On this page

Getting started

Overview & List View Quick Start

Form reference

Header Fields Item Lines Selecting items from center stock Gain & Loss

Actions & Status Stock & Account Posting Adjustment Reasons Master Update View Tabs & Widgets Best Practices FAQ Related & Videos

Overview & List View

The Inventory Adjustments list shows every adjustment with its id, date, type, on account, center, employee, reason, and status. Use the quick filter tabs to switch views and Advanced Filters to narrow the list. From the list you can create a new adjustment, open an existing one, edit a draft, or delete a draft. Inventory Adjustments list

List columns | **Column** | **Shows** | |------------|-----------| | Id | Adjustment reference number. | | Date | Adjustment date and time. | | Type | Inventory Gain or Inventory Loss. | | On Account | Account the value is posted against. | | Center | Center where stock is adjusted. | | Employee | Employee in charge of the adjustment. | | Reason | Adjustment reason. | | Status | Current status of the adjustment. | Quick filter tabs | **Tab** | **Shows** | |---------|-----------| | Default | All adjustments except cancelled ones. | | Approved | Adjustments that have been approved. | | Draft | Adjustments saved but not yet approved. | | Cancelled | Adjustments that have been cancelled. | Advanced Filters Id, Employee, Center, Type, Reason, Notes, Project, Status, Date, and Created date. List row actions | **Action** | **Available when status is** | |------------|------------------------------| | Edit | Draft | | Delete | Draft | | View | All statuses |

Quick Start — Create an Inventory Adjustment

1. Navigate

Go to Inventory → Inventory Adjustment from the left menu.

2. Create new adjustment

Click New to open the adjustment entry screen. New Inventory Adjustment

3. Fill in details

Set the Date and choose the Adjustment Type * — Inventory Gain or Inventory Loss.
Confirm the On Account * (auto-filled from the type) and choose the Center *.
Optionally set Employee, Brand, Reason, and Project.
Add item lines. Use the item zoom to pick from center stock — see Selecting items from center stock.
For a gain, enter More Quantity and Value per unit; for a loss, enter Less Quantity.

4. Save

Save — keeps the adjustment as a Draft.
Save And Approve — approves the adjustment in one step and posts stock and value.
Reset / Cancel — clears or closes the form without saving.

Header Fields Reference

| **Field** | **Description** | |-----------|-----------------| | Date * | Date and time of the adjustment. | | Employee | Employee in charge of the adjustment. | | Adjustment Type * | Inventory Gain (stock increase) or Inventory Loss (stock decrease). | | On Account * | Account the adjustment value is posted against. Auto-fills from the type — an income account for a gain, an expense account for a loss — and can be changed to another valid account. | | Center * | Center where stock is adjusted. | | Brand | Brand for brand-wise tracking. Shown when brands are enabled. | | Reason | Reason for the adjustment, chosen from the configured list. A new reason can be added inline. | | Project | Optional project link. | | Project Task | Task within the selected project. Enabled after a project is selected. | | Notes | Remarks about the adjustment. |

Item Lines — ITEMS

| **Column** | **Description** | |------------|-----------------| | Sl Num | Line serial number. Auto-numbered. | | Item * | Item being adjusted. Stock and consumable items only. Use the zoom to pick from center stock — see Selecting items from center stock. | | Variant | Item variant, where the item has variants. | | Unit | Unit of measure. Defaults from the item. | | Value per unit | Cost value per unit. Required for a gain so the added stock is valued correctly. | | Less Quantity | Quantity to remove. Enabled for an Inventory Loss. Prefills from selected stock quantity when picking from the inventory list. | | More Quantity | Quantity to add. Enabled for an Inventory Gain. Entered on the form (not prefilled from current stock). | | Batch | Batch being adjusted. For a loss, lists batches in the selected center; for a gain, you can select or add a new batch. Shown for batch-tracked items. | | Serial Numbers | Serial numbers being adjusted. For a loss you select existing serials; for a gain you add new serials. Shown for serial-tracked items. | | Inv Bin | Bin within the center. Shown when bin tracking is enabled. |

Selecting items from center stock

When you open the item zoom on an Inventory Adjustment, the list is filtered by the selected Center. Use the Show toggle at the top of the list: | **Show** | **What it lists** | **Typical use** | |----------|-------------------|-----------------| | With Stock | Items with quantity greater than zero at the center (Inventory Summary). | Inventory Loss — pick stock that exists to reduce. | | All Items | All stockable items for the center, including zero stock (title shows as Item List). | Inventory Gain — add stock for items that currently show zero at that center. |

Inventory Gain defaults to All Items so you can select items that are not currently in stock at the center.
Inventory Loss defaults to With Stock.
Use quick search to find an item by name or item code.
On Gain, selected lines do not copy quantity into More Quantity — enter the gain quantity on the form.
On Loss, selected stock quantity maps to Less Quantity.

Gain & Loss

| **Type** | **Use when** | **Quantity field** | |----------|--------------|--------------------| | Inventory Gain | Physical stock is more than the system shows. | Enter More Quantity and Value per unit. | | Inventory Loss | Physical stock is less than the system shows — damage, theft, shrinkage, or counting errors. | Enter Less Quantity. | The On Account default follows the type: a gain credits an inventory gain (income) account, and a loss debits an inventory loss (expense) account. You can change it to any other valid account before saving.

Actions & Status

View toolbar actions

| **Action** | **Description** | **Available when status is** | |------------|-----------------|------------------------------| | Approve | Approves the adjustment and posts stock and value. Hidden when multi-level approval applies. | Draft | | Edit | Opens the adjustment for editing. | Draft | | Delete | Permanently removes the adjustment. | Draft | | Clone | Creates a copy of the adjustment. | All (if permitted) |

More menu (⋮) actions

| **Action** | **Description** | **Available when status is** | |------------|-----------------|------------------------------| | Cancel | Cancels the adjustment and reverses its stock and account postings. | Approved | | Update Serial Numbers | Updates serial number properties for the adjusted items. | Approved, Closed | | Add/Update Note | Adds or edits a note on the adjustment. | All | | Master Update | Updates selected header fields without reopening the full form. See Master Update. | Approved, Closed | | Print Labels | Opens label printing for the adjusted items. | All | | Print | Prints the adjustment. | All |

Statuses

| **Status** | **Description** | |------------|-----------------| | Draft | Saved but not yet approved. Can be edited or deleted. No stock or value has posted. | | Approved | Finalized. Stock and value have been posted. | | Cancelled | Adjustment has been cancelled and its postings reversed. | > When multi-level approval is configured, the Approve button is replaced by the approval workflow and the adjustment moves through its approval stages before it posts.

Stock & Account Posting

When you approve an adjustment:

Inventory Gain — stock is increased at the center using the entered Value per unit. The accounting entry debits the inventory account and credits the chosen On Account (an income/gain account).
Inventory Loss — stock is decreased at the center at its current cost. The accounting entry credits the inventory account and debits the chosen On Account (an expense account).

Cancelling an approved adjustment reverses both the stock movement and the accounting entry.

Adjustment Reasons

Adjustment reasons are a master list you maintain under Inventory → Inventory Adjustment Reasons. Each reason has a Title * and an optional Description, and can be set Active or Suspended. Selecting a reason on each adjustment makes loss and gain reporting consistent (for example "Damaged", "Expired", "Stock count correction"). You can also add a new reason inline from the adjustment form.

Master Update

Master Update lets you change selected header fields on an approved adjustment without editing the full document or item lines. Open the three-dot menu on the adjustment and select Master Update. | **Field** | **Can be updated?** | **Notes** | |-----------|---------------------|-----------| | Date * | Yes | Cannot be set before the accounts closing date. The stock and journal dates are updated to match. | | Employee In charge | Yes | | | Project | Yes | | | Type, On Account, Center, item lines, quantities | No | Cancel the adjustment and create a new one to change these. | Click Confirm to save changes or Cancel to close without saving.

View Tabs & Side Panels

When you open an adjustment in full view, the right side shows tabbed panels. | **Tab** | **What it shows** | |---------|-------------------| | History | Activity log — who created, approved, edited, or cancelled the adjustment and when. | | Attachments | Files uploaded to this adjustment. |

Best Practices

Always select a Reason so loss and gain reports stay meaningful.
For gains, enter an accurate Value per unit — it sets the cost of the stock you are adding.
Use Batch and Serial Numbers for tracked items so the right units are added or removed.
Adjust at the correct Center — postings apply only to that center's stock.
Prefer an Inventory Counting where you are reconciling a full physical count, and use adjustments for targeted corrections.

FAQ

Why can't I find an item with zero stock when creating a Gain?
Switch the item list Show toggle to All Items (default for Gain). With Stock only lists items that currently have quantity at the center. What is the difference between an Inventory Gain and an Inventory Loss?
A gain adds stock (physical count is higher than recorded); a loss removes stock (damage, theft, or count shortfall). The type also decides whether the value posts to an income or expense account. Why is Value per unit required for a gain but not a loss?
A gain adds new stock, so the system needs its cost value. A loss removes existing stock at its current cost, so no value entry is needed. Does saving a draft adjustment change stock?
No. Stock and value post only when the adjustment is approved. Can I edit an approved adjustment?
No. Use Master Update for the allowed header fields, or Cancel the adjustment and create a new one. Why can't I see the Approve button?
When multi-level approval is configured, approval follows the approval workflow instead of the direct Approve button. How do I add a new adjustment reason?
Maintain reasons under Inventory Adjustment Reasons, or add one inline from the adjustment form's Reason field. Why won't my adjustment approve for insufficient stock?
Loss adjustments require enough on-hand quantity at the center. The system does not allow negative stock unless your company explicitly allows it. What is the difference between adjustment and revaluation?
Adjustment changes quantity (gain or loss). Inventory Revaluation changes unit cost without changing quantity. What is the difference between adjustment and inventory counting?
Inventory Counting records variances during a physical count. Adjustments post the actual stock correction — often after resolving a count line. Can I mix gain and loss lines in one adjustment from counting?
When creating an adjustment from counting resolution, choose either surplus or shortage lines — not both in one adjustment. Do serial-tracked items have special rules?
Yes. Serial numbers must be unique on the line and the serial count must match the adjustment quantity. Which header fields can I change with Master Update?
Date, Employee In charge, Branch, Brand, and Project. Item lines, quantities, and adjustment type cannot be changed through Master Update. Related documentation

Inventory Counting — reconcile a full physical count.
Inventory Revaluation — change stock value without changing quantity.
Inventory Transfer — move stock between centers.
Opening Inventory — set initial stock balances.

Video — Inventory Adjustment overview