Stock Adjustment Approval

Stock Adjustment Approval

The stock adjustment approval workflow in EquiBillBook helps ensure proper authorization controls, prevents unauthorized inventory changes, and maintains accountability for stock adjustments. This guide explains how the approval process works.

Why Approval is Important

Stock adjustment approval serves several critical purposes:

• Control: Prevents unauthorized inventory changes
• Accuracy: Ensures adjustments are reviewed before implementation
• Compliance: Maintains proper authorization for inventory modifications
• Audit Trail: Documents who authorized each adjustment
• Risk Management: Reduces risk of errors or fraud
• Accountability: Ensures responsible parties review adjustments

When Approval is Required

Approval requirements depend on your system configuration:

• All Adjustments: Every adjustment requires approval
• Amount Thresholds: Adjustments above certain value require approval
• Quantity Thresholds: Adjustments above certain quantity require approval
• Reason-Based: Specific adjustment reasons require approval
• User-Based: Certain users always require approval
• Location-Based: Adjustments in specific locations require approval

Configuring Approval Settings

To configure approval settings (typically done by administrators):

1. Navigate to Settings → Item Settings or Inventory Settings
2. Look for "Stock Adjustment Approval" or "Adjustment Workflow"
3. Enable or disable approval requirement
4. Set approval thresholds (amount, quantity, or percentage)
5. Configure approver roles or users
6. Set up approval routing (single or multi-level)
7. Configure notification settings
8. Save the configuration

Creating Adjustments Requiring Approval

When creating an adjustment that requires approval:

1. Create the stock adjustment as usual
2. Add items and adjustment details
3. Select adjustment reasons
4. Instead of "Save and Post", click "Submit for Approval"
5. The adjustment will be saved with "Pending Approval" status
6. Approvers will receive notification
7. Stock levels are NOT updated until approval is granted

Approval Status Types

Stock adjustments can have different statuses:

• Draft: Adjustment created but not yet submitted
• Pending Approval: Submitted and awaiting approval
• Approved: Approved and stock levels updated
• Rejected: Rejected and returned to creator
• Cancelled: Cancelled before approval

Approving Adjustments

As an approver, you can:

1. Access the "Pending Approvals" or "Approval Queue" section
2. Review adjustment details including:
• Items being adjusted
• Adjustment quantities and amounts
• Current vs. adjusted stock levels
• Adjustment reasons
• Notes and documentation
• Who created the adjustment
• When it was created
3. Verify the adjustment is appropriate and accurate
4. Check supporting documentation if provided
5. Click "Approve" to approve, or
6. Click "Reject" to reject (with optional comments)

Rejecting Adjustments

If you need to reject an adjustment:

• Provide clear reasons for rejection in comments
• Explain what needs to be corrected
• Original creator will be notified
• Adjustment remains in system but doesn't update stock
• Creator can modify and resubmit if needed

Multi-Level Approval

Some systems support multi-level approval:

• Level 1: First approver reviews and approves
• Level 2: Higher authority reviews for larger adjustments
• Sequential: Each level must approve before next level
• Parallel: Multiple approvers can review simultaneously
• Any One: Approval from any designated approver suffices

Approval Notifications

Notifications are typically sent:

• To Approvers: When adjustments are submitted for approval
• To Creators: When adjustments are approved or rejected
• Via Email: Email notifications for approval requests
• Via Dashboard: Alerts in system dashboard
• Via Mobile: Mobile app notifications (if available)

Emergency Adjustments

Some systems allow emergency adjustments:

• Bypass approval for urgent situations
• Require special permissions or override codes
• Still maintain audit trail
• May require post-approval review
• Document emergency justification

Viewing Approval History

Track approval history for each adjustment:

• See who created the adjustment
• View submission date and time
• See who approved or rejected
• View approval/rejection date and time
• Read comments from approvers
• Track status changes over time

Approval Permissions

Configure who can approve adjustments:

• Role-Based: Approvers assigned by role (Manager, Supervisor, etc.)
• User-Based: Specific users designated as approvers
• Location-Based: Different approvers for different locations
• Amount-Based: Different approvers for different adjustment amounts
• Item-Based: Different approvers for specific item categories

Best Practices

• Review adjustments promptly to avoid delays
• Verify all details before approving
• Request clarification if information is unclear
• Document approval decisions in comments
• Set reasonable approval thresholds
• Train approvers on their responsibilities
• Regularly review approval workflows for efficiency
• Monitor approval turnaround times

Troubleshooting Approval Issues

Common issues and solutions:

• Can't Find Pending Approvals: Check approval queue and filters
• Not Receiving Notifications: Verify notification settings and email configuration
• Can't Approve: Verify user has approver permissions
• Approval Not Updating Stock: Check if adjustment was fully approved in multi-level workflow
• Approval Taking Too Long: Review approval routing and ensure approvers are active

Disabling Approval

If approval is not needed:

• Adjustments can be saved and posted immediately
• Stock levels update instantly
• Still maintains audit trail of who made changes
• May be suitable for small businesses or specific scenarios
• Consider security implications before disabling

Need Help?

If you encounter issues with approval workflows:

• Verify approval settings are configured correctly
• Check user permissions for approval actions
• Ensure approvers are properly assigned
• Verify notification settings are working
• Contact your system administrator for configuration changes
• Contact support if approval process is not functioning correctly

The approval workflow is an important control mechanism for inventory management. Properly configured and used, it helps maintain inventory accuracy, prevent errors, and ensure accountability for all stock adjustments.