Inventory corrections can be used to adjust the in-stock quantity for 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. If it happens that there is no vendor invoice in the future, the Purchase Order can be closed anyway.
Adding inventory as a correction
Items can be added in to stock manually or using the inventory import. In both cases a cost price must be provided so that the items are added into stock with a value. This value will remain with the item through until it is sold and cost of sales is recorded.
Corrections should only be made for adding an opening stock balance and recording corrections where the stock levels have been identified as incorrect. Receiving purchase stock should be handled using a purchase order.
How to add inventory
- 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 (if multiple warehouses are in use ensure the relevant warehouse is selected also). 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 the location into which the items will be added is also displayed.
- 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.