/ Help & Support

Inventory Adjustment Entries

Sometimes it’s necessary to physically count the Inventory items in the warehouse to ensure accurate inventory management. It helps to make sure goods are not being lost or stolen.

The Inventory Entry module is used to make inventory adjustment entries. This can be entries for damage or loss items or to update stock availability after a physical inventory count process.

Recording inventory adjustment entries

To record an inventory adjustment entry,

Recording an adjustment entry
  1. On the main menu, click on Inventory and then Inventory Entries.
  2. In the Entries list, let’s click on the (+) Button and then New Inventory Entry from the context menu.
  3. In the header section, choose the WarehousePrice ListDateStatus, and the Employee recording the transaction.
  4. Continue to the Content Tab below.
Content Tab

In the Content’s Tab, we add the items we need to adjust.

  1. Choose the item and set either the counted quantity or the count variation.
  2. To add new items, click on the (+ Item) Button below the list and Repeat Step 1.
  3. To remove an item from the list, click on the trash can icon on the right.
  4. Type a description of this entry if necessary.
  5. Once our entry is completed, we click Save.

The Count and Variation fields can be used interchangeably. So if we specify the units Counted, the system will determine the Variation or difference, and if we specify the Variation, the system will determine the Counted units.

The Count field defines the actual quantity in stock.

The variation field records the difference between the system’s stock count and the physical stock count.

For example, suppose the system displays a stock quantity of 100 for a particular item, and after a physical count, we found there are only 90 items in stock. In that case, the variation or difference is -10.

Important note: All inventory adjustment entries are posted to the “Inventory Variation” ledger account in the journal. If you need to set a different ledger account, you can do so by going to the Ledger and Notes option under the options menu and choosing the ledger account from the Account list field.