Inventory Adjustments

Inventory Adjustments allows you to correct the quantity or value of items in your organization’s stock. It helps maintain accurate inventory records and ensures that reports reflect the correct stock levels and item values.

Types of Adjustments

There are two types of adjustment,

Quantity Adjustment
Value Adjustment

Quantity Adjustment

A Quantity Adjustment is recorded when the stock quantity in the system does not match the actual stock available in the warehouse due to reasons outside regular business activities, such as theft, damaged goods, data entry errors, write-offs, or donations. Zoho ERP allows you to record stock adjustments for basic inventory-tracked items, as well as serial-tracked and batch-tracked items.

Value Adjustment

A Value Adjustment is recorded in Zoho ERP when the value of an item increases or decreases due to supply and demand. For example, if an item is slow-moving, it leads to a drop in the unit cost and the asset value.

Create Inventory Adjustment

To record an adjustment in Zoho ERP,

Navigate to Inventory on the left sidebar.
Go to Inventory Control in the top Module bar.
Click Inventory Adjustments in the dropdown.
Click +New in the top right corner of the page and provide the required details,

Field	Description
Mode of Adjustment	Select the adjustment type, Quantity Adjustment Select this option when the physical stock count differs from the recorded item count. Value Adjustment Choose this option when you need to update the cost of the item
Reference Number	Enter a unique reference number for the adjustment. This helps you identify the record easily.
Date	Select the date on which the adjustment is created or recorded.
Account	Choose the account that should be used for tracking the adjustment.
Reason	Select the reason for making the adjustment. This helps in explaining why the quantity or value was changed.
Location	Select the item’s warehouse or location where the adjustment applies.
Description	Add description about the adjustment if required.
Attach Files	Upload related files if needed.

If you have selected Quantity Adjustment,
- Select the items you want to adjust in the Item Table. You can view the available quantity.
- You can either enter the New Quantity on Hand or specify the Quantity Adjusted (for example, +10 or –10) Based on the value you enter, the other field will update automatically.
If you have selected Value Adjustment,
- Choose the items you want to update its value. You can view the current value of each item.
- You can either enter the Changed Value or specify the Adjusted Value (for example, +10 or –10). Based on the value you enter, the other field will be updated automatically.
Click Save as Draft or Convert to Adjusted to successfully adjust stocks.

Manage Adjustment Reasons

Stock adjustments are done for many reasons. If your reason isn’t listed in the dropdown, you can add it as well as remove the unused reasons.

To manage adjustment reasons,

Navigate to Inventory on the left sidebar.
Go to Inventory Control in the top Module bar.
Click Inventory Adjustments in the dropdown.
Click +New in the top right corner.
Click the Reason dropdown.
Select Manage Reasons in the dropdown.
Click +Add New Reason.
Enter the Reason name and click Save and Select to add the new reason to your adjustment.
- If you wish to mark a reason as inactive or delete, hover over the unused reason and click Mark as Inactive to make the reason inactive or click the Trash icon to delete.

Note: You cannot delete a reason that is already used in an adjustment. To proceed, delete all adjustments associated with that reason, or mark the reason as Inactive.

Other Actions

You can perform other actions such as edit, delete, export the adjustments as a PDF or print them for reference.

Edit

You can edit a adjustment after creation to correct any mistakes or update details as needed.

To edit the adjustment,

Navigate to Inventory on the left sidebar.
Go to Inventory Control in the top Module bar.
Click Inventory Adjustments in the dropdown.
Select the adjustment you wish to edit.
Click Edit in the top-left in the adjustments details page.
Make the require changes and click Save.

Delete

You can remove an adjustment that was created by mistake or is no longer required, so it doesn’t affect inventory records.

To delete the adjustment,

Note: You cannot delete the inventory adjustment record for advanced inventory tracked items involved in other transactions. Delete all the associated transactions to proceed with deleting.

Navigate to Inventory on the left sidebar.
Go to Inventory Control in the top Module bar.
Click Inventory Adjustments in the dropdown.
Open the adjustment you want to delete.
Click the More icon in the top right corner of the page.
Select Delete in the dropdown.

PDF/Print

You can download or print the adjustments for physical reference or documentation purposes.

To download or print the adjustment,

Navigate to Inventory on the left sidebar.
Go to Inventory Control in the top Module bar.
Click Inventory Adjustments in the dropdown.
Select the adjustment you wish to download or print.
Click PDF/Print in the adjustment details page.
Select the required action,
- PDF - to download as PDF.
- Print - to print the adjustments.