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Inventory Adjustments
Sometimes, the value or quantity of the items in your organization could change without creating sales or purchase transactions. Let us understand this with the help of scenarios.
Scenario 1:
- Some of your items may be damaged due to mishandling or shipping. In this case, the available stock has to be reduced without creating a sales transaction.
- You could sometimes get additional items from your vendors as incentives. Here, your available stock has to be increased without creating a purchase transaction.
In Zoho Books, these scenarios are handled using Quantity Adjustments.
Scenario 2:
- Let’s say you purchase 10 mobile phones at a certain rate. After a year or so, their value decreases and their price drops. You need to adjust their value accordingly.
- In another case, let’s say you’ve purchased steel. If its value increases and its price goes up in the near future, you need to adjust its value accordingly.
In Zoho Books, these are handled using Value Adjustments.
Create Inventory Adjustments
To create an inventory adjustment:
- Go to Items on the left sidebar and select Inventory Adjustments.
- Click + New in the top right corner.
- In the New Adjustment page, select Quantity Adjustment or Value Adjustment as the required Mode of Adjustment.
- Enter the Date of adjustment, the Account associated to track the adjustment, and the Reason.
- In the Item Table, select the required item and make the adjustmentst.
- Click Save as Draft and adjust it later, or click Convert to Adjusted.
The stock in the inventory is adjusted accordingly.