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, check for incorrect or missing transactions, and only if the mismatch persists should you post an adjustment.

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 operational issues.

Where to Access

Navigate to the left sidebar menu and select Inventory ▸ Adjustment. Click the Add New button in the top-right corner to initiate a new inventory adjustment entry.

Key Attributes

Header Fields (Adjustment Record)

• Date: The effective date of the transaction.

• Adjustment Number: The unique tracking number for the inventory adjustment.

• Location: The physical site or warehouse where the stock adjustment occurs.

• Adjustment Account: The expense or variance account where the adjustment posts (the system default can be configured in Settings ▸ General Settings).

Per-Item Lines

• Item: The specific product or raw material being adjusted.

• Description: A brief summary description of the item.

• Current Quantity (On Hand) The current system quantity at the time of the adjustment (display-only).

• New Quantity or Quantity Change: Enter either the new absolute total quantity or the net delta amount.

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

• Value Diff: The monetary impact of the line item, representing the net change in inventory value.

• Notes/Comments: Optional field for adding internal situational context.

• Department: Tags the line item to a specific business department for financial reporting.

• Project Code: Tags the line item to a project or job code for precise cost tracking.

Valuation Reference (for suggested cost)

• For Inventory Increases: The system automatically suggests a cost based on the item's defined Standard Cost.

• For Inventory Decreases: The suggestion is dynamically calculated based on your active Valuation Method (FIFO, LIFO, or Weighted Average).

Key Functions

How to Create an Inventory Adjustment

1. Investigate First: Review the item's history for missed or incorrect transactions. Only proceed with an adjustment if a physical mismatch remains.

2. Open the Entry Sheet: Navigate to Inventory ▸ Adjustment and click Add New.

3. Fill Header Details: Specify the transaction Date, Location, and target Adjustment Account.

4. Add Line Items: For each item, select the Item SKU, review its Current Quantity, and input either the New Quantity or Quantity Change.

5. Review Accounting Valuation: Adjust the Cost Basis manually if necessary (otherwise, accept the system-suggested cost). Add internal Notes or Comments for tracking purposes.

6. Process: Click Save to commit the changes and update your inventory ledger.

Related Features

• Items

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