Stock Adjustments
Learn how to add, remove, transfer, and count inventory to keep your stock levels accurate.
What are stock adjustments?
Stock adjustments are changes you make to inventory quantities outside of the normal sales and receiving process. They help you correct errors, record losses, move inventory between locations, and verify counts.
When to use adjustments:
- Recording inventory received outside of purchase orders
- Removing damaged, expired, or stolen items
- Moving stock between locations (transfers)
- Correcting counts after physical inventory
- Recording usage or consumption
Types of adjustments
There are four types of stock adjustments, each for a specific purpose:
Add Stock
Increase inventory quantity at a location
Common Uses
- Received items without a PO
- Found missing inventory
- Returned items from customer
- Initial stock setup
Remove Stock
Decrease inventory quantity at a location
Common Uses
- Damaged or expired items
- Theft or loss
- Internal use or samples
- Write-offs
Transfer Stock
Move inventory from one location to another
Common Uses
- Restocking a location
- Consolidating inventory
- Preparing for events
- Balancing stock levels
Stock Count
Set quantity to match physical count
Common Uses
- Physical inventory counts
- Correcting discrepancies
- Cycle counting
- Audit adjustments
Making an adjustment
Steps to adjust stock
Quick adjustment
You can also adjust stock directly from the Stock page by clicking the adjustment icon next to any stock record. This opens the adjustment form pre-filled with the product and location.
Adjustment reasons
Every adjustment requires a reason. This helps you understand why inventory changed and identify patterns (like recurring shrinkage).
| Reason | Type | Description |
|---|---|---|
| Received | Add | Items received outside of PO |
| Found | Add | Located missing inventory |
| Return | Add | Customer returned items |
| Damaged | Remove | Items damaged and unusable |
| Expired | Remove | Items past expiration date |
| Theft | Remove | Items stolen or missing |
| Internal Use | Remove | Used internally, not sold |
| Restock | Transfer | Moving stock to another location |
| Cycle Count | Count | Routine count adjustment |
| Inventory Audit | Count | Annual/periodic audit |
Stock transfers
Transfers move inventory from one location to another. The total quantity stays the same—it just changes where the stock is held.
How transfers work:
The system automatically decreases stock at the source and increases it at the destination. Both changes are recorded in the transaction history.
Transfer limits
You can only transfer up to the available quantity at the source location. If you need to transfer more, receive additional stock first.
Stock counts (inventory counts)
Stock counts let you set the quantity to match what you physically counted. The system calculates the difference and records it as an adjustment.
Example:
Stock counts are useful for correcting accumulated discrepancies without knowing exactly when or why they occurred.
Best practices for counting
Count during slow periods
Do physical counts when the location is closed or during slow hours to avoid interruptions.
Count by location
Count one location at a time to stay organized and reduce errors.
Double-check large variances
If counts are way off, verify before saving. Check for misplaced items.
Schedule regular counts
Establish a cycle counting routine (weekly, monthly) rather than relying on annual inventories.
Viewing adjustment history
All adjustments are recorded in the transaction history. You can view this to understand what changed, when, why, and by whom.
Transaction records include:
Best practices
Always select a reason
Reasons help you track patterns and identify issues like recurring theft or damage.
Add notes for context
Include details like 'Found behind shelf' or 'Damaged in transit from Supplier X'.
Adjust promptly
Record adjustments as soon as you discover discrepancies to keep inventory accurate.
Review adjustments regularly
Look for patterns in your adjustment history to identify and address root causes.