Inventory Adjustment

Overview

• Reconciles system records to physical inventory by adjusting quantity and cost basis.

• Suggested cost logic aligns adjustments with the item’s standard cost or chosen valuation method.

• Supports auditing via documented Reason, Notes/Comments, and use of appropriate Adjustment Account.

• Encourages good control through best practices: use as a last resort, document every adjustment, run cycle counts, and review adjustment reports to spot recurring issues.

Where to Access

• Users (admin / common) can access item via Inventory column (Inventory: Adjustment)

• Click Add New to initiate inventory adjustment onto the ianaiERP system

Key Attributes

Header Fields (Adjustment Record)

• Date: Effective date of the adjustment

• Adjustment Number: Tracking number for the inventory adjustment

• Location: Site where the adjustment occurs

• Adjustment Account: Account to post the adjustment to (default can be set in Settings > General Settings).

Per-item lines

• Item: The item being adjusted

• Description: Brief description of the item

• Current Quantity (On Hand) : System quantity at the time of adjustment (display only)

• New Quantity or Quantity Change: Enter either the new total of the delta

• Quantity Diff: System-calaulated difference (New-Current); shows units added/removed

• Value Diff: Monetary impact of the line (inventory value change)

• Notes/Comments: Additional context

• Department: Tag the line to a department for reporting

• Project Code: Tag the line to a project/job for tracking

Valuation Reference (for suggested cost)

• For increases in quantity: system suggests cost based on the item's standard cost.

• For decreases in quantity: suggestion is based on the selected valuation method (FIFO, LIFO, or Weighted Average).

Key Functions

Investigate first (history, missed/incorrect transactions); adjust only if mismatch remains.

• Create an adjustment:

  1. Navigate Inventory > Adjustment → Add New.

  2. Enter Date, Location, Adjustment Account.

  3. For each item: select Item, review Current Quantity, enter New Quantity or Quantity Change, optionally adjust Cost Basis, add Notes/Comments.

  4. Save to process.

• Adjust quantity & cost basis:

• Enter either new total or change.

• Adjust cost basis if needed.

• Suggested cost uses standard cost (increase) or FIFO/LIFO/Weighted Average (decrease).

Related Features

• Items

For more detailed information on managing items, please refer to the specific sections in this documentation.