Increase/Decrease Stock

Increase/Decrease Stock

Understanding when and how to increase or decrease stock levels in EquiBillBook is crucial for maintaining accurate inventory records. This guide covers all aspects of stock quantity adjustments.

Understanding Stock Adjustments

Stock adjustments allow you to modify inventory quantities directly, independent of sales or purchase transactions. This is useful for:

• Correcting discrepancies between system and physical stock
• Recording stock found or discovered
• Writing off damaged, expired, or lost items
• Adjusting for production or manufacturing changes
• Recording stock received without purchase documentation

When to Increase Stock

Increase stock levels when:

• Physical Count Variance: Physical inventory shows more stock than the system
• Found Stock: Previously missing or misplaced items are discovered
• Free Stock Received: Items received without purchase bill (samples, gifts, etc.)
• Production Output: Manufacturing or assembly creates new finished goods
• Return from Customer: Items returned but not yet recorded in sales return
• Data Correction: Previous adjustment was incorrectly recorded as decrease

When to Decrease Stock

Decrease stock levels when:

• Physical Count Variance: Physical inventory shows less stock than the system
• Damage/Loss: Items are damaged, lost, or stolen
• Expired Items: Products past expiration date need to be removed
• Obsolete Stock: Items no longer usable or sellable
• Sample/Free Issue: Items given away for samples or promotional purposes
• Internal Consumption: Stock used internally (not through sales)
• Data Correction: Previous entry was incorrect and needs correction

Methods of Adjusting Stock

EquiBillBook offers different methods to adjust stock:

1. Direct Quantity Entry

Set the exact quantity you want the stock to be:

• Enter the final quantity desired
• System calculates the difference automatically
• Best for setting stock to a known value

2. Adjustment Amount Entry

Enter the amount to increase or decrease:

• Positive number for increase (e.g., +10)
• Negative number for decrease (e.g., -5)
• System calculates new quantity automatically
• Best for recording specific adjustments

3. Percentage Adjustment

Some systems allow percentage-based adjustments:

• Useful for bulk adjustments
• Apply to multiple items simultaneously
• Less common but available in some configurations

Creating Stock Increase Adjustments

To increase stock:

1. Navigate to Stock Adjustment module
2. Click "Create New Adjustment"
3. Select the item you want to adjust
4. Current stock quantity will be displayed
5. Enter the new higher quantity, or
6. Enter a positive adjustment amount (e.g., +50)
7. Select appropriate adjustment reason (e.g., "Found Stock")
8. Add notes explaining the increase
9. Save the adjustment

Creating Stock Decrease Adjustments

To decrease stock:

1. Navigate to Stock Adjustment module
2. Click "Create New Adjustment"
3. Select the item you want to adjust
4. Current stock quantity will be displayed
5. Enter the new lower quantity, or
6. Enter a negative adjustment amount (e.g., -25)
7. Select appropriate adjustment reason (e.g., "Damaged Goods")
8. Add notes explaining the decrease
9. Save the adjustment

Impact on Stock Valuation

Stock adjustments may affect inventory valuation:

• Quantity Changes: Affects total inventory value based on item cost
• Cost Method: Impact varies by valuation method (FIFO, LIFO, Average Cost)
• Write-offs: Decreases reduce inventory value
• Found Stock: May require cost entry if using cost-based valuation

Bulk Adjustments

For adjusting multiple items at once:

• Some systems support bulk adjustment features
• Upload adjustment file (Excel/CSV) with multiple items
• Apply same reason to multiple adjustments
• Review each item before finalizing bulk adjustments
• Maintain individual documentation for each item

Adjustment Limits and Controls

Consider setting up controls:

• Approval Thresholds: Require approval for adjustments above certain amounts
• Negative Stock Prevention: Prevent decreasing stock below zero (if enabled)
• User Permissions: Restrict adjustment creation to authorized personnel
• Maximum Adjustment: Set limits on single adjustment amounts

Verification Before Adjusting

Always verify before making adjustments:

• Conduct physical stock count to verify actual quantity
• Review stock movement history to understand discrepancies
• Check for pending transactions that might affect stock
• Verify the location/branch is correct
• Confirm adjustment reason is appropriate

Best Practices

• Perform regular physical counts to minimize discrepancies
• Investigate reasons for stock variances before adjusting
• Document all adjustments with clear explanations
• Set up approval workflows for significant adjustments
• Review adjustment patterns to identify root causes
• Train staff on proper adjustment procedures
• Maintain chronological records of all adjustments

Common Scenarios

Scenario 1: Physical Count Shows More Stock

• Physical count: 150 units
• System shows: 120 units
• Action: Increase stock by 30 units
• Reason: "Physical Count Variance - Found Stock"

Scenario 2: Damaged Goods

• System shows: 100 units
• Found 10 units damaged during inspection
• Action: Decrease stock by 10 units
• Reason: "Damaged Goods"

Scenario 3: Received Free Samples

• Received 50 units as free samples from supplier
• Action: Increase stock by 50 units
• Reason: "Free Stock Received" or "Sample/Free Issue"

Need Help?

If you encounter issues with stock adjustments:

• Verify stock tracking is enabled for the items
• Check user permissions for stock adjustment operations
• Ensure items are not locked or in use by other transactions
• Verify the adjustment won't result in negative stock (if prevented)
• Contact support if stock levels are not updating correctly

Proper stock adjustment practices help maintain accurate inventory records and support better inventory management decisions. Regular monitoring and adjustment help ensure your system stock always reflects physical reality.