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Processing an Inventory Adjustment

There are occasions where you need to reduce the amount of inventory you have without making a sale. This may be for:

  • Damage - inventory that you have damaged and cannot sell
  • Expiry - inventory that is out of date, or needs to be thrown away
  • Theft - inventory loss due to other reasons such as theft
  • Internal Use - inventory that you use or consume in the course of your business that you are not directly selling to a customer, but that you need to account for in your inventory.

An inventory adjustment is used to do this.


Inventory Adjustments are used only to reduce inventory for a specified reason.

To increase your inventory level, such as when discovering unaccounted for inventory, you need to complete a Purchase Order in order to correctly record the supply price associated with the items you are adding.

Process an Inventory Adjustment

1. Navigate to Catalog -> Products

2. Identify the product you which to adjust, using the filters if required


3. Click on the product 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 adjust from the Adjustment Reason dropdown


8. Enter the amount that the inventory is being reduced by into the Adjustment Quantity section. 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 have just made, click Inventory Movements View for the the product you have adjusted.


To learn more about the Inventory Movements View, refer to our Using the Inventory Movements View guide.

Reporting on inventory adjustments

Inventory adjustments are not automatically passed to accounting Integrations, and do NOT appear on reports as a separate line item, so you should ensure that you make a record of these figures in your accounting system.

You can find completed inventory adjustments on the Inventory Movements View, however these need to manually reported on.

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