Stock Adjustment on Returns

Stock Adjustment on Returns

When you create a purchase return in EquiBillBook, the system automatically adjusts your inventory stock levels. This guide explains how stock adjustments work during purchase returns and how to ensure accurate inventory management.

Automatic Stock Adjustment

When a purchase return is created and finalized:

• Stock Deduction: Returned quantities are automatically deducted from inventory
• Location-specific: Stock is adjusted at the branch/location where the purchase was received
• Real-time Update: Stock levels are updated immediately upon finalizing the return
• History Tracking: All stock movements are recorded in stock history

How Stock Adjustment Works

The stock adjustment process follows these steps:

1. Item Selection: When you select items for return, the system identifies the stock locations
2. Quantity Validation: System verifies that sufficient stock exists for return
3. Stock Deduction: Upon finalizing the return, quantities are deducted from inventory
4. Purchase Details Update: Quantity remaining and quantity sold are updated in purchase details
5. Branch Stock Update: Item branch mapping is updated with new quantities
6. History Recording: Stock movement is recorded in stock history

Stock Tracking Requirements

For stock adjustment to occur:

• Stock Tracking Enabled: Stock tracking must be enabled for the items being returned
• Item Configuration: Items must have stock tracking configured in item settings
• Return Status: Return must be in "Final" status (Draft returns don't adjust stock)
• Valid Purchase: The original purchase must have stock tracking enabled

Quantity Calculations

The system handles quantity calculations carefully:

• Return Quantity: Only the returned quantity is deducted from stock
• Unit Conversion: Quantities are converted based on item unit of measurement
• Free Quantity: Free quantities from purchase are also adjusted if applicable
• Partial Returns: Only the specific returned quantities are deducted

Multi-location Stock Adjustment

For businesses with multiple branches:

• Branch-specific: Stock is adjusted at the branch where the purchase was received
• Location Tracking: Each branch maintains separate stock levels
• Inter-branch Returns: Returns are processed at the original purchase branch
• Stock Reports: Branch-wise stock reports reflect the adjustments

Purchase Details Update

When stock is adjusted, purchase details are updated:

• Quantity Remaining: The quantity remaining for purchase items is increased
• Quantity Sold: The quantity sold is decreased by the return amount
• Stock Reconciliation: Purchase details maintain accurate stock tracking
• Item Mapping: Item branch mapping quantities are updated

Draft vs Final Status

Stock adjustment behavior differs by status:

• Draft Status: No stock adjustment occurs - allows you to prepare returns without affecting inventory
• Final Status: Stock is immediately adjusted when the return is finalized
• Status Change: Moving from Draft to Final triggers stock adjustment
• Cancellation: Cancelling a Final return restores the stock

Stock History

All stock adjustments are recorded in stock history:

• Movement Type: Recorded as "Purchase Return" in stock history
• Reference: Linked to the purchase return document
• Details: Includes item, quantity, date, branch, and reason
• Audit Trail: Provides complete audit trail for inventory movements

Stock Restoration on Cancellation

If you cancel a purchase return:

• Automatic Restoration: Stock that was deducted is automatically restored
• Quantity Updates: Purchase details quantities are restored
• Branch Stock: Branch stock levels are restored
• History Entry: A new history entry records the restoration

Verifying Stock Adjustments

To verify that stock was adjusted correctly:

1. Check the current stock levels for returned items
2. Review stock history for the purchase return entry
3. Verify purchase details show updated quantities
4. Check branch stock reports if using multi-location
5. Compare stock levels before and after the return

Stock Adjustment Reports

Monitor stock adjustments through reports:

• Stock Movement Reports: View all stock movements including returns
• Purchase Return Reports: See stock impact of purchase returns
• Item-wise Stock Reports: Track stock changes for specific items
• Branch Stock Reports: View branch-wise stock adjustments

Common Scenarios

Scenario 1: Full Item Return

• Returning all quantities of an item deducts the full quantity from stock
• Quantity remaining in purchase details is restored to original
• Item branch mapping reflects the deduction

Scenario 2: Partial Item Return

• Returning partial quantities deducts only the returned amount
• Remaining stock reflects the partial deduction
• Purchase details show updated quantities

Scenario 3: Multiple Items Return

• Each item's stock is adjusted independently
• All adjustments occur in a single transaction
• Stock history shows separate entries for each item

Best Practices

• Always verify stock levels before creating purchase returns
• Use Draft status to prepare returns without affecting stock
• Review stock adjustments after finalizing returns
• Keep stock tracking enabled for accurate inventory management
• Regularly reconcile stock levels with physical inventory
• Monitor stock history for unusual adjustments
• Ensure return quantities don't exceed available stock

Troubleshooting

Stock is not being adjusted?

• Verify that stock tracking is enabled for the items
• Check that the return status is "Final" and not "Draft"
• Ensure items have stock tracking configured in item settings
• Review inventory settings to confirm stock tracking is active
• Check that the original purchase had stock tracking enabled

Stock adjustment seems incorrect?

• Verify the return quantities match what was entered
• Check unit of measurement conversions
• Review purchase details to see quantity updates
• Compare stock history entries with return details
• Ensure no other transactions affected stock simultaneously

Stock was adjusted but shouldn't have been?

• Cancel the purchase return to restore stock
• Create a stock adjustment to correct the levels if needed
• Review return settings and item configurations
• Contact support if the issue persists

Can't return items due to stock issues?

• Verify that the items exist in the original purchase
• Check that quantities don't exceed what was purchased
• Ensure stock tracking is properly configured
• Review purchase details for available quantities

Integration with Other Features

Stock adjustment on returns integrates with:

• Stock Reports: Returns appear in stock movement and valuation reports
• Low Stock Alerts: Adjusted stock levels trigger alerts if below threshold
• Inventory Valuation: Stock valuation reflects return adjustments
• Purchase Reports: Purchase return reports include stock impact

Understanding stock adjustment on purchase returns is crucial for maintaining accurate inventory levels. Proper stock tracking ensures that your inventory records reflect the actual goods in your possession.