Inventory Adjustment
Inventory adjustments are used to increase or decrease item quantities and cost basis in ianaiERP to reconcile differences between physical stock and system records. Such differences may stem from spoilage, theft, loss, or receiving errors. Use adjustments sparingly: first review the item's transaction history and check for incorrect or missing transactions — only post an adjustment if the mismatch persists.
Overview
- Reconciles System Records: Adjusts physical inventory quantities and cost bases to match physical stock.
- Suggested Cost Logic: Automatically aligns adjustments with the item's standard cost or chosen valuation method.
- Audit-Ready Documentation: Supports internal accountability via documented Reasons, Notes/Comments, and dedicated Adjustment Accounts.
- Inventory Control Best Practices: Use adjustments as a last resort, document every change, run regular cycle counts, and review adjustment reports to spot recurring issues.
Where to Access
Inventory ▸ Adjustment in the left sidebar. Click Add New (top-right) to start a new entry.
Key Attributes
Header Fields (Adjustment Record)
| Field | Description |
|---|---|
| Date | Effective date of the transaction |
| Adjustment Number | Unique tracking number for the adjustment |
| Location | Physical site or warehouse where the adjustment occurs |
| Adjustment Account | Expense/variance account where the adjustment posts (default configurable in Settings ▸ General Settings) |
Per-Item Lines
| Field | Description |
|---|---|
| Item | The product or raw material being adjusted |
| Description | Brief summary of the item |
| Current Quantity (On Hand) | Current system quantity at time of adjustment (display-only) |
| New Quantity or Quantity Change | Enter the new absolute total, or the net delta amount |
| Quantity Diff | System-calculated difference (New − Current); shows units added/removed |
| Value Diff | Monetary impact of the line item — net change in inventory value |
| Notes/Comments | Optional field for internal context |
| Department | Tags the line item to a department for financial reporting |
| Project Code | Tags the line item to a project/job code for cost tracking |
Valuation Reference (for suggested cost)
| Scenario | How cost is determined |
|---|---|
| Inventory Increases | System suggests a cost based on the item's defined Standard Cost |
| Inventory Decreases | Dynamically calculated based on your active Valuation Method (FIFO, Moving Average Cost, or Weighted Average) |
Key Functions
How to Create an Inventory Adjustment
- Investigate first: Review the item's history for missed or incorrect transactions. Only proceed if a physical mismatch remains.
- Open the entry sheet: Navigate to Inventory ▸ Adjustment and click Add New.
- Fill header details: Specify the transaction Date, Location, and target Adjustment Account.
- Add line items: For each item, select the Item SKU, review its Current Quantity, and input either the New Quantity or Quantity Change.
- Review accounting valuation: Adjust the Cost Basis manually if necessary (or accept the system-suggested cost). Add internal Notes or Comments as needed.
- Process: Click Save to commit the changes and update your inventory ledger.
Related Features
For more detailed information on managing items, please refer to the specific sections in this documentation.