A stock adjustment can modify the quantity and value of your stock. Modifications of value (accounting) and quantity (physical) can be done independently.
The stock adjustment will always display the total quantity on hand. When you adjust the quantity, you change the total quantity ‘on hand.
When you change the value, you change the total value of the stock asset account. A checkbox ‘Edit Stock Values’ enables/disables your ability to edit the stock value.
Accounting – what you should know
When you perform a stock adjustment you are affecting the Stock Asset account and a Profit and Loss (P&L) account. You can select the P&L account. If you are not sure which P&L account to use, seek advice from a qualified accounting professional.
For example, if you are writing off stock then you are posting a loss, and therefore an expense, which should be posted (debited) to an expense account i.e. ‘Stock Write Off’. The system defaults to this account. This default is set in the Accounting Configuration. See ‘Setup accounting Configuration’.
The ‘credit’ on the adjustment will lower (credit) the balance in the stock asset account.
How to do a Stock adjustment
If you’re not using the WMS (warehouse management system), you can perform stock adjustments from:
From the Stock Item
From the Stock List
Select the Item(s)
Product/Services>Stock>Actions>New Stock Adjustment
Good to know: If you’re not using the WMS, then you can’t edit a stock adjustment.
From the WMS
If you are using the WMS, you can perform stock adjustments from the Stock Actions tab.
See ‘Adjust Stock’ (WMS Console).
When you get to the last step, you’ll need to return to the main app, find the Stock Adjustment and make the balance sheet value adjustment.
To find a Stock Adjustment go to, Accounting >Find Transactions
When not using WMS
|From the Stock Item||Products/Services>Items>Stock Item>Actions|
|From the Stock List||Select the Item(s) Product/Services>Stock>Actions>New Stock Adjustment|
|Note: If you’re not using the WMS, then you can’t edit a stock adjustment.|
When using WMS
|From the Stock Actions tab in WMS Console||WMS Console > Stock Actions tab. Refer Stock Actions When When you get to the last step, you’ll need to return to the main app, find the Stock Adjustment and make the balance sheet value adjustment. To find a Stock Adjustment go to, Accounting >Find Transactions|