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:

• Increasing Quantity: The physical count is greater than the recorded quantity.
• Decreasing Quantity: The physical count is lower than what is in the system.
• 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:

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

Go to create a new Stock Adjustment in Localizebook:

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

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

• In Stock: Physical Stock
• Avg Cost: Average Cost
• Asset: Value of Asset

2.Adjust Information:

• Adjustment Type:
• QTY (Adjust only Qty)
• Value (Adjust only Value)
• QTY & Value (Adjust Both)
• Date Adjustment: Select your date
• Reference : Auto from System

3.Account : Select Account for Adjust

• Total Asset Deference: Auto from system
• Number of Item Adjusted: Auto from system
• Memo: Describe your adjustment

4.Item Name: Select Item

• Item Code: Auto from Item
• Unit Name: Auto from Item
• In Stock: Auto from Item
• 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.

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