## Documentation Index

Access the complete documentation index at:
https://www.zoho.com/za/books/help/llms.txt

Use this file to discover all available documentation pages before proceeding.

# Inventory Adjustments

Sometimes, the value or quantity of the items in your organization could change without creating sales or purchase transactions. Let us understand this with the help of scenarios.

**Scenario 1:**

*   Some of your items may be damaged due to mishandling or shipping. In this case, the available stock has to be reduced without creating a sales transaction.
*   You could sometimes get additional items from your vendors as incentives. Here, your available stock has to be increased without creating a purchase transaction.

In Zoho Books, these scenarios are handled using **Quantity Adjustments**.

**Scenario 2:**

*   Let’s say you purchase 10 mobile phones at a certain rate. After a year or so, their value decreases and their price drops. You need to adjust their value accordingly.
*   In another case, let’s say you’ve purchased steel. If its value increases and its price goes up in the near future, you need to adjust its value accordingly.

In Zoho Books, these are handled using **Value Adjustments**.

## Create Inventory Adjustments

To create an inventory adjustment:

*   Go to _Items_ on the left sidebar and select **Inventory Adjustments**.
*   Click **\+ New** in the top right corner.
*   In the _New Adjustment_ page, select **Quantity Adjustment** or **Value Adjustment** as the required _Mode of Adjustment_.
*   Enter the **Date** of adjustment, the **Account** associated to track the adjustment, and the **Reason**.
*   In the _Item Table_, select the required item and make the adjustmentst.
*   Click **Save as Draft** and adjust it later, or click **Convert to Adjusted**.

The stock in the inventory is adjusted accordingly.