Inventory corrections can be used to adjust the in-stock quantity of a product. This might be used to correct the quantity of an item after a stock take or to write off damaged items. When items are added or removed the necessary accounting adjustments will be made automatically.
Tip: If you are going to pay for items now or at a later date, or have already paid for them, then there is a financial transaction (vendor invoice) that should be linked to the inventory to ensure that the correct accounting takes place.
A vendor invoice is received against a purchase order, so it’s recommended to create a purchase order first and receive inventory against it.
Adding inventory as a manual adjustment
Units of a product can be added to stock individually or using the inventory import.
In both cases a cost price must be provided so that the units are added into stock with a value. This value will remain with that specific unit through its lifecycle - until it is sold and cost of sales is recorded.
Manual corrections should only be made for adding an opening stock balance and making one-off adjustments to stock to account for errors or changes in price.
Inventory purchased from vendors should be handled using a purchase order.
Adding inventory to an individual product
- Search for the product on the product list and click on the inventory level.
- In the pop-up window click on Add inventory for the relevant warehouse.
Alternatively, go to Products > Add inventory and search for the product (making sure to select the relevant warehouse if using multiple warehouses). Click Add item.
- In the pop-up window, enter the quantity to be added into stock and the value of a single item. This value will be used to create the accounting required to update the asset value. If warehouse locations are activated you'll need to also select which location to add these items into.
- Enter a reason for the adjustment. This will be recorded against the accounting journal and inventory audit trail.
- Click the Add items button to finish.
Adding inventory using a CSV update
It is also possible to import inventory using a CSV file.