Warehouse. Inventory Adjustments

Inventory items can break, spoil, expire or be stolen, or you can receive additional stock, such as a free shipment. For this reason, you may need to change your inventory records to match the actual quantities.

Inventory adjustments can be used to correct the in-stock figure for a product. This may be used to correct the quantity of an item after a stock take or to write off some of the items.

Inventory adjustments should not be used to add purchased inventory or remove sold inventory – in such cases inventory should always be received into stock against a purchase document (or an incoming shipment document) and removed from stock for sale by a sales invoice (or an outgoing shipment document).

Go to Warehouse -> Documents and then open “Inventory Adjustments” tab to review the list of the adjustments made. The documents it contains can be sorted by date, document number, and warehouse.

To make a new inventory adjustment, press the “ Create a New Inventory Adjustment” button. A form will open. Select the operation date, the warehouse it applies to, and the required adjustment type.

The current inventory balance can be adjusted by using the following adjustment types:

1) Inventory Receipt – an operation to increase the current inventory balance.

2) Inventory Write-off – an operation to reduce the current inventory balance.

3) Physical Inventory — available stock (as stated in the program) and physical stock reconciliation and the adjustment of the discrepancies revealed.

4) Production Order – the production of an item (and the receipt of the goods to the warehouse associated with it) from another item/items (and the withdrawal of the goods from the warehouse associated with it), conducted at the same warehouse.

When items are added to or removed from the inventory, an accounting journal is automatically created in order to adjust the asset value of the inventory. The entry type depends on the selected inventory accounting method (system of inventory) – periodic or perpetual.

Each in-stock item has an asset value associated directly with it. Therefore, when removing an item from stock, the actual value (taken from the last calculated cost price) of the specific item removed will be used (this value can be manually edited during the process of adding the item).

Similarly, when adding items into stock, the actual cost (taken from the last calculated cost price) of the specific item will be used (this value can be manually edited during the process of adding the item).

       

How to Enter a Production Order?

1) Select the menu Warehouse -> New Operation -> Enter an Inventory Adjustment.

2) Select the adjustment type: Production order.

3) Enter the date, select the warehouse. Press the “Continue” button.

4) Add the items and their quantity to the list of items. When selecting an item in the “UnitCost” field, an actual calculated cost price will then be prompted. If needed, its value can be edited manually. To add a new line, press the “N” key on the keyboard or the “Add a New Entry” link on the display. Having completed the list of the items to be removed (write-off to the production), press “Update” to save the entered information.

5) Verify the list of the Out/Write-Off to production, press “Approve”. The items are written off from the warehouse to the production, and the production order is saved with a status of “In Production”.

6) To make a list of the items to be received from the production (In/Receipt list), open the production order and press “Edit”. Enter the quantity and cost per unit in the list. To add a new line, press “N” or select “Add a New Entry”. Having completed the In/Receipt list, press the “Update” button.

7) Verify the production order, press the “Mark as Done” button. The item is received in the warehouse from the production, and the operation is completed.

     

How to Enter a Physical Inventory?

1) Select the menu Warehouse -> New Operation -> Enter an Inventory Adjustment.

2) Select the adjustment type: Physical Inventory.

3) Enter the date, select the warehouse. Press the “Continue” button.

4) Add the items and their quantity to the list of items. When selecting an item in the “Cost per Unit” field, an actual calculated cost price will then be prompted. If needed, its value can be edited manually. To add a new line, press the “N” key on the keyboard or the “Add a New Entry” link on the display. Having completed the stock-taking list, press the “Update” button to save the information.

5) Having checked the entered information, press “Confirm”. The operation is completed, and the appropriate entries have been made.

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