Stock Adjustment

What is Stock Adjustment?

First Definition: A stock adjustment is an increase or decrease in a company's inventory to explain theft, broken products, loss or other errors.

Second Definition: A stock adjustment is the increase or reduction made to the stock so that the actual quantity on hand matches the stock shown in the system – basically, a correction in the records so that they agree with the physical count.

The three types of stock adjustments commonly performed by businesses are:

1. Increasing Quantity: The physical count is greater than the recorded quantity.
2. Decreasing Quantity: The physical count is lower than what is in the system.
3. Reevaluating: The physical quantity as such is not different but the management changes the average cost and therefore the total value of a particular item.

Adjustments are required because of:

1. Wastage – obsolete or expired inventory (perishables, electronics, etc.).
2. Shrinkage – stocks lost due to theft.
3. Breakage – damaged inventory that isn’t capable of being sold.
4. Internal consumption – stock that was not sold consumed internally by the company.
5. Write-off – inventory lost for other reasons.

Go to create a new Stock Adjustment in Localizebook:

1. Go to the Item menu.
2. Click on Stock Adjustment.
3. Click on button +Add in the top-right of the page.
4. Enter the basic information of stock adjustment:

1.Stock Information after Adjusted: Show information of Item both all location and specific Location.

1. In Stock: Physical Stock
2. Avg Cost: Average Cost
3. Asset: Value of Asset

2.Adjust Information:

1. Adjustment Type:
2. QTY (Adjust only Qty)
3. Value (Adjust only Value)
4. QTY & Value (Adjust Both)
5. Date Adjustment: Select your date
6. Reference : Auto from System

3.Account : Select Account for Adjust

1. Total Asset Deference: Auto from system
2. Number of Item Adjusted: Auto from system
3. Memo: Describe your adjustment

4.Item Name: Select Item

1. Item Code: Auto from Item
2. Unit Name: Auto from Item
3. In Stock: Auto from Item
4. New Stock: Physical Stock

Note: The save

button for saving your current transaction line. if having a new transaction you must click the save button to have a new line to make a new transaction. The

button for delete the transaction line.

1. After filling all with your information:
2. Save & New: Save the stock adjustment and add another one.
3. Save & Close: Save the stock adjustment and close the window.
4. Close: Close window without saving the stock adjustment.