Creating Stock Adjustments

Creating Stock Adjustments

Stock adjustments in EquiBillBook allow you to correct inventory discrepancies, update stock levels manually, and maintain accurate inventory records. This guide will walk you through the process of creating stock adjustments.

What are Stock Adjustments?

Stock adjustments are used to:

• Correct inventory discrepancies found during physical stock counts
• Adjust stock levels due to damage, loss, or theft
• Update stock quantities after receiving items without purchase bills
• Record stock write-offs for expired or obsolete items
• Rectify data entry errors in inventory records

Accessing the Stock Adjustment Module

To create a new stock adjustment:

1. Navigate to the Items or Inventory module from the main menu
2. Click on Stock Adjustment or Stock Adjust
3. Click the "Create New" or "Add Adjustment" button

Basic Adjustment Information

Fill in the essential details:

• Adjustment Date: Select the date for the stock adjustment (defaults to today's date)
• Adjustment Number: The system will auto-generate this based on your numbering settings
• Branch/Location: Select the branch or location where the adjustment is being made (if using multi-branch setup)
• Reference Number: Optional reference number or memo for the adjustment

Adding Items for Adjustment

Add items that need stock adjustment:

1. Click "Add Item" or search for items in the item field
2. Select the item from the dropdown or search results
3. The current stock quantity will be displayed automatically
4. Enter the adjusted quantity (the new quantity after adjustment)
5. Or enter the adjustment quantity (positive to increase, negative to decrease)
6. Select the adjustment reason from the dropdown (if configured)
7. Add any notes or comments about the adjustment
8. Repeat for all items that need adjustment

Adjustment Types

EquiBillBook supports different adjustment types:

• Increase: Add stock to increase the quantity (positive adjustment)
• Decrease: Remove stock to decrease the quantity (negative adjustment)
• Set Quantity: Set the stock to a specific quantity

Selecting Adjustment Reasons

It's important to select an appropriate adjustment reason:

• Physical Count Variance: Difference found during physical inventory count
• Damaged Goods: Stock damaged and removed from inventory
• Loss/Theft: Stock lost or stolen
• Expired Items: Items past expiration date
• Sample/Free Issue: Items given away as samples
• Data Correction: Correcting previous data entry errors
• Found Stock: Previously missing stock found

Adjustment reasons help maintain proper documentation and audit trails.

Multi-Location Adjustments

If you have multiple branches or locations:

• Each adjustment is location-specific
• Select the correct location before adding items
• Stock adjustments affect only the selected location
• Cross-location adjustments may require stock transfers instead

Reviewing the Adjustment

Before saving, review:

• All items and their adjustment quantities
• Current stock vs. adjusted stock levels
• Adjustment reasons for each item
• Total impact on inventory valuation
• Notes and reference information

Saving the Adjustment

Once all information is entered:

1. Review the adjustment summary
2. If approval is required, click "Submit for Approval"
3. If no approval is needed, click "Save" or "Save and Post"
4. The adjustment will update stock levels immediately (or after approval)

Approval Workflow

Depending on your settings:

• Some adjustments may require approval before stock is updated
• Approvers will receive notifications for pending adjustments
• Approved adjustments automatically update stock levels
• Rejected adjustments remain in draft and can be modified

What Happens After Creating a Stock Adjustment?

After creating and posting a stock adjustment:

• Stock levels are updated immediately (or after approval)
• Stock movement history is recorded
• Adjustment appears in stock adjustment reports
• Audit trail is maintained for compliance
• Inventory valuation is recalculated if applicable

Best Practices

• Perform regular physical stock counts to identify discrepancies
• Document all adjustments with clear reasons
• Review adjustment patterns to identify recurring issues
• Set up approval workflows for significant adjustments
• Train staff on proper adjustment procedures
• Regularly review adjustment reports for anomalies
• Maintain proper documentation for audit purposes

Important Considerations

• Stock Tracking: Stock adjustments work only if stock tracking is enabled for the items
• Negative Stock: Some systems allow negative stock, but it's generally not recommended
• Valuation: Stock valuation may be affected by adjustments, especially for cost-based valuation
• Permissions: Ensure users have appropriate permissions to create adjustments
• Accuracy: Double-check quantities before posting adjustments

Need Help?

If you encounter issues while creating stock adjustments:

• Ensure stock tracking is enabled for the items
• Verify you have permissions to create stock adjustments
• Check that items are properly configured in the system
• Verify the selected branch/location is correct
• Contact support if stock levels are not updating correctly

Stock adjustments are essential for maintaining accurate inventory records. Regular adjustments help reconcile system stock with physical stock and ensure your inventory data remains reliable for business decisions.