New Adjustment
An Item Adjustments Note is a vital inventory management tool used to record stock entering your company from sources other than a direct supplier (e.g., finding misplaced stock, internal transfers, or recording opening balances). This form allows you to manually increase or decrease stock levels to ensure your digital records perfectly match your physical warehouse counts.To create a new adjustment, navigate to Items & Services > Click "Adjustment" Tab > Click "+ Add New Adjustment" or navigate to Items & Services > Click "New" > Select "Adjustment". Processing this form immediately updates your Quantity On Hand (QOH) and reflects the value change in your inventory assets.
Location
Select the specific warehouse or storage area where the stock adjustment is occurring. This ensures that the inventory is added to or removed from the correct physical site. If your business operates multiple branches, ensure the location matches the physical movement of the goods.
Reference
The Reference field acts as a unique tracking number for the adjustment. The system generates this automatically (e.g., 008/2025) based on your sequence settings, but it can be manually edited to align with internal paperwork or audit requirements.
Date
Enter the date on which the physical adjustment took place. This date is crucial for accounting purposes as it determines which financial period the inventory value change will be recorded in.
Branch
Select the business branch associated with this transaction. Categorizing adjustments by branch helps in generating accurate localized reports and maintaining organizational hierarchy in your financial statements.
Department
Assign the adjustment to a specific internal department (e.g., Quality Control, Sales, or Production). This is useful for tracking which department is responsible for stock discrepancies or for allocating opening balances to specific cost centers.
Adjustment Items
This section is where you define the specific products being adjusted:
- Item Description: Select the product from the dropdown list. If the item does not exist yet, click the + icon to create a new item profile immediately.
- Batch No: If you track stock by specific lots, enter the manufacturer's batch number here. This is essential for traceability and quality management.
- Exp Date: For perishable or date-sensitive goods, select the expiration date. This ensures the system can alert you before stock becomes unsellable.
- QOH (Quantity On Hand): This read-only field displays the current stock level recorded in the system for the selected item at the chosen location before this adjustment is applied.
- Quantity: Enter the amount by which you want to change the stock. Use a positive number to add stock and a negative number to reduce stock.
- Unit: Choose the unit of measurement (e.g., each, kg, box) for the item.
- Unit Cost: Enter the value per unit for this adjustment. For new stock coming in, this represents the cost price; for stock being removed, it typically represents the carrying cost.
- Total: The system automatically calculates the total value of the adjustment for that line (Quantity × Unit Cost).
- Add Item Button: Click this to move the entry into the adjustment table below.
Attachments (Choose File)
You can link supporting digital evidence to the adjustment, such as a scanned copy of a physical stock-take sheet or a photo of the items. Click Choose File to upload documents from your device. These files remain permanently attached to the record for future audits.
Memo
The Memo field is an open text area for internal notes. Use this to explain why the adjustment was made (e.g., "Correcting stock count after annual audit" or "Found 5 units behind shelf"). This context is helpful for accountants and managers reviewing the logs later.
Action Buttons
- Update: Refreshes the form data or saves changes made to an existing entry without finalizing the stock movement.
- Process Adjustment: Finalizes the document. This action immediately updates your inventory levels and creates the necessary accounting entries in the General Ledger.
- Draft: Saves your progress as a work-in-progress. A draft does not affect your stock levels or financial records, allowing you to return and finish it later.
General Ledger
The General Ledger (GL) is the core financial heart of your system, ensuring that every inventory adjustment is recorded with accounting precision. When an Item Adjustment Note is processed, the system automatically translates the stock movement into a series of debits and credits. This ensures your balance sheet reflects the true value of your stock on hand and categorizes any gains or losses correctly.
The following types of accounts are typically maintained in an Item Adjustment:
- Inventory Account: This is the primary asset account that records the value of the physical goods held in your warehouse. It is Debited to show an increase in your company's assets or stock value when items are brought into the inventory.
- Inventory Adjustments Account: This account acts as the offset for manual stock changes. It is Credited when increasing stock (such as for opening balances or receiving items from non-supplier sources). This ensures that the increase in asset value is balanced by a corresponding entry in your equity or income adjustment records.
Custom Fields
Custom fields allow you to add unique data points to your Adjustment based on your specific business needs. Whether you need to record a secondary reference, a quality check note, or specific delivery instructions, the system supports multiple input types like text boxes, dropdowns, checkboxes, and date pickers.
You can add these fields to three main areas of the form:
- Form Header & Footer: For general information related to the entire delivery.
- Line Items (Order Items): By clicking the Add Field button at the top of the items section, you can track item-specific data like "Material Grade" or "Storage Requirements" for each individual product.