Stock Adjustments

Stock adjustments let you manually change the quantity of an item in a specific warehouse - outside of the normal order/receipt flow.

When to adjust stock

Common reasons for manual adjustments:

• Damaged goods - items broken or unsellable
• Shrinkage - stock lost to theft or misplacement
• Found stock - items discovered that weren't in the system
• Corrections - fixing data entry errors
• Samples or gifts - stock removed for non-sale purposes

For planned physical inventory verification, use Stock Counts instead.

Making an adjustment

1. Go to Inventory
2. Find the item and warehouse you want to adjust
3. Click on the quantity number to open the adjustment popover
4. Enter the new quantity (the physical quantity you want the system to reflect)
5. Optionally enter a reason (e.g., "damaged in transit", "found in back of warehouse")
6. Click Adjust

The system calculates the difference automatically - you only need to enter the target quantity.

What happens behind the scenes

Increasing stock

When the new quantity is higher than the current on-hand quantity:

1. A new batch is created with a batch number like ADJ-001
2. The unit cost is set from the most recent batch, or falls back to the item's cost price
3. A stock movement of type adjustment is recorded
4. The system automatically allocates the new stock to any confirmed sales orders waiting for stock (oldest orders first)

Decreasing stock

When the new quantity is lower than the current on-hand quantity:

1. Stock is removed using FIFO (first-in, first-out) across batches
2. Pass 1 - removes from available (unallocated) stock first
3. Pass 2 - if more needs to be removed, takes from reserved (allocated) stock
4. Affected order allocations are released if reserved stock is consumed
5. A stock movement is recorded for each affected batch

Movement record

Every adjustment creates a stock movement with:

All adjustments are visible in the item's Stock History for full audit trail.