An adjustment is a type of transaction that allows you to add inventory to, or reduce inventory from, a closed order or receipt. This could be needed for a number of reasons, such as receiving damaged products or incorrect lot numbers, or mistakenly confirming an unfinished receipt with the auto-allocation feature turned on.

This article reviews how to create a new adjustment and cancel an existing adjustment.

To make inventory adjustments, you must have the following permission assigned to your user role: Inventory Module > Adjust Inventory.

Skip Ahead: Use the following links to skip to the relevant guidelines below.

• Create an adjustment
  • Add inventory
  • Reduce inventory
  • Add price and notes
• Cancel an adjustment

Create an adjustment

It is important to note that there is no such thing as an "Open" adjustment. That means once you start creating an adjustment, you must complete it in its entirety, and you cannot make modifications to the adjustment once you save it.

1. To get started on creating an adjustment, navigate to Inventory > Adjust Inventory.
2. Select the appropriate customer and warehouse from the respective drop-down menus.
3. Enter a unique reference number, then press < Tab > on your keyboard to ensure the system recognizes your entry.
   Smart User Tip: Once created, you can find all adjustment transactions using the Transaction by Activity Report. We recommend having a naming convention specifically for adjustments to easily distinguish them from other transactions after generating this report.
4. If needed, enter a relevant PO #.
5. Continue reading below to learn more about each adjustment option.

Add inventory

The Add Inventory tab allows you to add SKUs that were missed in the receiving or shipping process.

1. To add a line item, click New to open the Add Receive Line Item dialog.
   
2. Select the relevant SKU from the drop-down list. If you opt to manually enter the SKU name, press < Tab > on your keyboard to ensure the system recognizes your entry.
   If the description does not populate once you've entered a SKU, that means the system did not recognize your entry.
3. Enter a quantity in the '# of [Primary UOM]' field.
4. Enter each track-by value (Lot #, Serial #, Expiration Date) as needed. The system automatically disables the track-by fields that are not relevant to the item.
5. If you are storing the item in a specific location, select a location from the bottom drop-down menu. This ensures that the correct location is listed on any relevant pick tickets for this item.
6. If you need to enter additional SKUs, click Add & New, then repeat Steps 2–5. If this is the only SKU you need to add, click Add & Close.
   
7. Once you add all the necessary SKUs, ensure the Control Total matches the Actual Total in the fields above the grid.
8. Continue to the next sections for guidelines on how to reduce inventory or add prices/notes.

If you make a mistake after you've saved a line item, you can select it from the grid and click Modify or Delete.

Reduce inventory

The Reduce Inventory tab allows you to remove SKUs that were added in the receiving or shipping process. This functionality removes the specified items from your available inventory in the same way that an order is allocated, which is based on the item's allocation method (FIFO/FEFO/LIFO).

1. Click the Reduce Inventory tab.
2. To specify the first SKU you would like removed, click New to open the Add Order Line Item dialog.
   
3. Select the relevant SKU and qualifier from the respective drop-down lists. If you opt to manually enter a value, press < Tab > on your keyboard to ensure the system recognizes your entry.
    If the description does not populate once you've entered a SKU, that means the system did not recognize your entry.
4. Enter a quantity, and select the appropriate unit of measure.
5. Click New to open the Manual Allocation dialog. The Manual Allocation grid contains the following columns to help you identify a particular SKU:
   
   • Received: Date receipt was confirmed
   • Lot#: Lot number assigned to item
   • Serial#: Serial number assigned to item
   • Exp. Date: Expiration date assigned to item
   • Location: Designated warehouse space where item is located
   • Available: Number of primary units available for allocation
6. Select the specific inventory you'd like to remove from the grid, enter the 'Quantity to Allocate' below the grid, then click Add & Close to return to the Add Order Line Item dialog.
   
   • If there are unique track-by's or locations associated with this SKU, you must add each line item individually.
   • To do this, select a line item from the grid, enter the quantity, click Add & New, then repeat until the full quantity is accounted for. Once the total number of SKUs are selected, click Add & Close to return to the Add Order Line Item dialog.
7. If you need to specify additional SKUs to remove, click Add & New, then repeat Steps 3–6. Once you specify all SKUs that you need to remove from inventory, click Add & Close.
   
8. Ensure the Control Total matches the Actual Total in the fields above the grid.
9. Continue to the next section for guidelines on how to add prices/notes.

If you enter multiple SKUs, they appear as separate line items in the Reduce Inventory grid. To modify or delete a SKU, select the appropriate button above the grid.

Add price and notes

The Price & Notes tab allows you to charge or reimburse your customer for the adjustment, as well as add relevant notes to populate on your invoice.

Create an invoice: You can also use this section to create an invoice that populates on the Manage Invoices page. This lets you create an adjustment without adding or reducing inventory. For example, you may want to create one adjustment at the end of the month that accounts for all mistakes over the course of the month, such as missed shipments.

1. Click the Price & Notes tab.
2. If you have any adjustment billing scripts configured in the Billing Wizard, you are required to enter an amount for the relevant charge type (even if the amount is 0). You can do this by manually entering a price or clicking the calculator icon and specifying the quantity associated with the adjustment.
3. To add manual charges, simply enter the price next to the relevant charge type. If you want to reimburse your customer, use the minus sign (-) to enter a negative charge amount.
4. To add a note, you can do so next to a specific charge amount or in the Notes section.
5. If needed, change the Back Date.
6. If you have an established QuickBooks connection, click Create Invoice to export the relevant charges to the QuickBooks Invoice Queue.
7. To officially create the adjustment, click Save and confirm the charges.

Once saved, the transaction number displays at the bottom of the page below the Save button, your available inventory is adjusted, and you can view the adjustment using the Transaction by Activity Report.

Cancel an adjustment

Since you can not re-open an adjustment, if you need to make modifications, you must cancel the original adjustment and create a new one if needed. If an adjustment contained added inventory that has since been allocated to an existing order, you cannot cancel the adjustment.

1. To cancel an adjustment, navigate to Inventory > Cancel Adjustment.
2. Select the associated transaction or reference number from the respective drop-down menu, then click Select.
3. Enter a cancellation reason (required) and any charges associated with the cancellation, then click Cancel to cancel the adjustment.
   

If you populate a Transaction by Activity report that contains the cancelled adjustment, the original reference number ends with the word 'CANCELED' and the associated transaction number.

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