Inventory adjustments are used when you need to reduce inventory without making a sale. This may happen due to:

• Damage: Inventory that's damaged and can't be sold.
• Expiry: Inventory that's out of date or must be discarded.
• Internal use: Inventory used or consumed in the course of doing business that will not be sold to customers.
• Theft: Inventory that's been lost or stolen.
• Donation: Inventory that's been donated.

You can also create custom inventory adjustment reasons.

Inventory adjustments should only be used to reduce inventory for a specified reason that prevents the product from being sold. To increase your inventory level for any other reason, you need to complete a purchase order to correctly record the supply price associated with the items you're adding.

Processing an inventory adjustment

1. Navigate to Catalog > Products.
2. Identify the product you want to adjust, using the filters if needed.

   

3. Click on the product row to expand.
4. Click Adjust Inventory.

   

5. Select the outlet you will be adjusting inventory for from the Outlet dropdown menu.
6. Click Next.

   

7. Select a reason for the adjustment from the Adjustment Reason dropdown.

   

8. Enter the amount the inventory is being reduced by into the Adjustment Quantity field. The Inventory column will display the inventory quantity and the adjusted inventory quantity.
9. Click Adjust Inventory.

   

Your inventory level will now be updated. To view the changes you have just made, click View inventory movements for the product you adjusted.

Creating a custom adjustment reason

If none of the default adjustment reasons are accurate, you can create your own inventory adjustment reasons, providing you with more control and clarity over your inventory movements.

To create a custom adjustment reason:

1. Navigate to Catalog > Adjustment reasons.

   

2. Click Add reason.
3. In the Reason name field of the pop-up, enter your custom reason.

   

4. Click Add reason.

Your custom adjustment reason will now be visible in the list of all inventory adjustment reasons. You can toggle your custom reason on and off from this page.

Disabled custom adjustment reasons will be hidden when adjusting a product's inventory, but will be visible on your Adjustment report.

Accounting and inventory adjustments

Inventory adjustments are not automatically passed to Accounting integrations and don't appear on reports as separate line items. You should ensure you record these figures in your accounting system.

What's next?