Inventory adjustments

You adjust inventory in a store when the quantity of items in a location is not the same as the quantity of items recorded. This can occur for a number of reasons. For example, if products in a store are damaged, the amount of inventory available must be adjusted to reflect that situation.

Inventory adjustments are either initiated manually, or as part of a cycle count or physical count process. When performing inventory adjustments, you must enter an appropriate reason code to indicate why the modification was made. For example, if the reason code is entered as "Scrap", the system automatically reduces the on-hand quantity. Examples of inventory adjustments are: