Inventory adjustment

An inventory adjustment is the process of correcting a discrepancy in received inventory balances. The two kinds of inventory adjustments are quantity and cost. You perform adjustments after you have released the receiving document.

Quantity adjustment

A quantity adjustment is a correction made in inventory balances. You can use inventory adjustments when inventory cannot be classified as a standard transaction such as an issue, receipt, or transfer. Quantity adjustments can be used to account for an inventory return, a miscount, theft, or damaged goods.

Examples of when inventory quantity adjustments are necessary are returns, damaged goods, and miscounting.

Cost adjustment

Note: You can only make cost adjustments to item quantities that are currently in stock.

A cost adjustment is an adjustment to the unit cost of an item. You perform cost adjustments at the time of invoicing to correct an entry error.

You cannot make cost adjustments for a purchase order receipt with this process.