Edit Adjustment – A Summary of the Activity

This activity allows you to select, modify and delete the details of the adjustment transaction. Stock correction is an ongoing process in inventory management usually carried out when there is difference between the system and physical stock quantities. The difference can be positive, negative or zero. When the physical stock is more than the system stock, the difference is positive. When the physical stock is less than the system stock, the difference is negative. When the difference is only in the value of the stock, it is zero quantity difference.

Stock correction is essential to maintain a high level of accuracy between the system and physical stock. The physical inventory (PI) and cycle count (CC) components make corrections to the stock through this activity when there is a difference between the system and actual physical stock available in the warehouse. Stock adjustment is always performed in terms of stock UOM. Adjustments cannot be made for non-stockable item types such as “Capital”, Model”, “Kit”, “Service” and “Reference Item”.

Adjustments can also be positive, negative, zero quantity or standard cost revaluation. In positive adjustment, the difference in quantity between the system and physical stock is specified as adjustment quantity with a plus or no sign preceding it to denote that the adjustment is positive. In negative adjustment, the difference in quantity between the system and physical stock is specified as adjustment quantity with a minus sign preceding it to denote that the adjustment is negative. In zero quantity or value adjustment, there is no correction in stock quantity and only the stock value or serial numbers of the items need to be adjusted.

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