Manage Stock Adjustments
In the real world, your physical inventory may not always match your digital records. The Stock Adjustment tool allows you to reconcile these differences, ensuring your inventory levels and financial values remain accurate.
Sevenledger supports two distinct types of adjustments to handle different scenarios: Quantity Adjustments and Value Adjustments.
Create a new adjustment
To correct your inventory records:
- Navigate to Inventory > Adjustments.
- Click + New.
- Select the Mode of Adjustment (Quantity or Value).
- Fill in the transaction details (Date, Account, Reason).
- Add the items you need to adjust in the table below.
- Click Save.
Type 1: Quantity Adjustment
Use a Quantity Adjustment when the physical count of an item differs from what is recorded in Sevenledger.
Common Scenarios:
- Stocktaking: You counted 48 items on the shelf, but the system says you have 50.
- Damage/Expiry: Items were broken or expired and must be removed from stock.
- Theft: Inventory is missing and unaccounted for.
How it works
When you select this mode, the system updates your stock levels.
- New Quantity On Hand: Enter the actual physical count here. Sevenledger will automatically calculate the difference.
- Quantity Adjusted: Alternatively, you can enter the difference directly (e.g.,
-2to remove two items).
Type 2: Value Adjustment
Use a Value Adjustment when the quantity of items is correct, but their financial worth has changed. This updates the asset value in your general ledger without changing stock levels.
Common Scenarios:
- Depreciation: Electronic goods or fashion items have lost market value over time.
- Appreciation: The market price of a commodity (like raw materials) has increased.
- Cost Correction: The original purchase cost was recorded incorrectly.
How it works
When you select this mode, the system posts a journal entry to update the inventory asset account.
- New Value: Enter the new total value for the specific batch or item.
- Adjusted Value: The difference between the current book value and your new value.
Adjustment Configuration
Ensuring the correct accounts and reasons are selected is crucial for accurate financial reporting.
| Field | Description |
|---|---|
| Reason | Required. Select a predefined reason (e.g., “Stocktaking”, “Damaged Goods”, “Stolen”). This helps in auditing later. |
| Date | The effective date of the adjustment. Financial reports will reflect the change from this date onward. |
| Account | The ledger account affected by the adjustment cost. • For Losses (theft/damage), use an Expense account (e.g., “Cost of Goods Sold” or “Inventory Write-off”). • For Gains (found stock), use an Income account. |
| Reference Number | Optional. Use this to link the adjustment to a physical audit report or approval document. |