What an adjustment does
A Stock adjustment puts goods in or takes goods out of one warehouse and records the reason. Use it when stock changes without a purchase or a sale:
| Adjustment reason | Stock |
|---|---|
| Stock-take in (Qty increased) | In: you counted more than the books say |
| Stock-take out (Qty Decreased) | Out: you counted less |
| Expiry | Out: goods past their date |
| Breakage | Out: broken goods |
| Damage | Out: damaged goods |
| Donation | Out: given away |
| Stolen | Out: lost to theft |
| Inventory issue(Goods consumption) | Out: used inside the business (amenities, office use) |
| Finished goods receive | In: finished goods you made outside the production journal |
An adjustment makes no ledger entry. The loss does not appear as an expense. It appears because the closing stock of the profit and loss is lower (Closing stock in the profit and loss, the balance sheet and the year end). Do not also post a journal for the same loss.
Make an adjustment
- Open Stock adjustment and choose Add
- Set the date and, if you use it, the Project/Business Unit
- Add a line for each product
- Save
You can also fill many lines from a spreadsheet: Template, Import, Upload.
| Area | Change |
|---|---|
| Stock | Each line puts its quantity in, or takes it out of, the warehouse of the line, on the adjustment's date |
| Stock value | Goods put in start a new pile at the line's Rate; goods taken out leave at their first-in-first-out cost when values are next worked out (How stock is valued and what a sale costs) |
| Ledgers | Nothing: no expense or income entry is made |
| Profit | Through closing stock: less stock means a lower closing stock and a lower profit, more stock the reverse (Closing stock in the profit and loss, the balance sheet and the year end) |
| Approval | Where approval is on, the adjustment waits to be marked approved, but its stock has already moved |
| Number | The next number of the series you chose |
Which rate to type
| Reason | The rate means |
|---|---|
| A reason that brings stock in | The cost of one unit. This is the value the new goods start with (How stock is valued and what a sale costs) |
| A reason that takes stock out | The cost shown for the loss on the line. The goods that leave are valued at their real cost (first in, first out) when values are worked out |
For a count, the rate on a stock-take in should be the cost the goods would have had: keep the rate the line proposes, which is the average cost of what that warehouse holds (or the product's Buy rate when it holds nothing). A rate of 0 brings the goods in with no value, which makes later sales look like pure profit.
After saving
Open an adjustment from the list to Edit, Delete, Print, or Approve (where approval is on). The rules are the same as for a transfer (Edit, delete and approve a transfer or an adjustment). The list shows Adjust no, Date, Status, Product, Adjustment reason, Notes and Branch. The Stock adjustment summary report lists adjustments by reason (Stock adjustment, stock transfer and expiry/breakage summaries).
Common questions
"Negative stock not allowed." on an adjustment.
You are taking out more than the warehouse holds. Check the warehouse; the adjustment never goes below zero, whatever the Negative stock setting says (Negative stock: where Penahak checks it).
We counted more than the books. Which reason?
Stock-take in (Qty increased).
Is the loss on the profit and loss?
Through closing stock: a lower closing stock lowers profit. There is no separate loss line.
Can I adjust goods that are batch tracked?
Yes: the line asks for the batch you adjust (Batch, expiry date and serial number tracking).
I pressed Delete on an approved adjustment and it is still there.
An approved adjustment cannot be deleted, even though the screen lets you press Delete. Make a new adjustment with the opposite reason (Edit, delete and approve a transfer or an adjustment).
Should I also post a journal for the loss?
No. The loss already lowers profit through closing stock; a journal would count it twice.