Inventory Adjustment

February 18, 2022 06:56

Modify inventory levels to reflect changes in your actual inventory count that might not be in your records. Inventory adjustment refers to adjustment entries made in periodic accounting to account for differences between recorded and actual inventory items.

Inventory Adjustment is a 2-way process:

Step 1: Initiate Inventory Adjustment through UI or Import

Step 2: Commit Inventory Adjustment

Initiate Inventory Adjustment

The user adjusts the quantity of the inventory by selecting the Adjustment Type, Venue, and Location from drop-down boxes. The user can provide remarks and item UPC and their final quantities. The user can then initiate adjustment. If the user wants to see an adjustment already made he enters the venue and source and clicks Show Adjustment.

Details

The user provides the Adjustment Type, Venue, and Location under the venue where the adjustment has to be made. Then provides the remarks for the adjustments. After that selects the items to be adjusted and then pulls the report.

Once an item is selected, the adjustment grid shows all key details for that item, including:

Item ID
UPC
Product ID
Description
Color
Size
UOM (editable)
Unit Cost
QOH (per location)
Adj Options (dropdown with Final Quantity, Add, Subtract)
Qty Adjusted (editable field)

A search bar is available in both modify and commit page which users can quickly find items by Item ID, UPC, Product ID or Item Name

There are three ways to do Inventory Adjustment. You can do Standard Adjustments, Financial Reconciliation, and Negative Quantity Reset.

The Standard Adjustment option on this page, when a user enables this option by selecting items that are going to be adjusted. You can select them by searching the item lookup by typing the UPC/ItemID. Then choose the Adjustment Option: Final Quantity/Add/Subtract then the Console will adjust according to what you have in your Inventory Balance Report.

There is a Full Reconciliation option on this page, when a user enables this option by checking it all the items that are in the store inventory balance report are assumed to be reconciled. The items entered will be adjusted to the specified levels and all other items will be adjusted to quantity 0. This is used when you wish to perform a full store inventory reconciliation. If you are clearing out all inventory and leaving no items in the venue or store, check the Full Reconciliation box, and enter one of the items with a "0" quantity, which will "zero out" all inventory.

There is a Negative Quantity Reset option on this page when a user enables this option so that all of his negative quantity QOH will get reset back to zero. This is useful for a merchant that started not wanting to track inventory but now wants to do this and everything negative will go back to Zero, now they can start fresh receiving all the merchandise and keeping track of what is sold and how much they have in stock.

Full reconciliation from the initiate adjustment UI can be done for Stores or Warehouses. If you need to adjust large quantities of inventory please use the import function.

Note:

If a modification is made to an item after an adjustment is initiated and before it has been committed, the adjustment will be made reflecting the new data and will differ from the initiate receipt. Thus the adjustment may be different from what was initiated.
Users adding the same item multiple times to adjustments will now receive a clear "Duplicate Item: [Item Name]" error message, enhancing data accuracy and workflow efficiency.

Inventory Adjustment through Import

You'll need access to a spreadsheet program that supports CSV files such as Excel or Google Sheets. Any other file type will not import.

You can download the sample template by clicking on the Download Sample link.

The mandatory fields for import will be preselected, you also have the option to select the other required fields and download the CSV file sample.

Import Field Descriptions:

SourceID*: Indicate the ID of the store or warehouse you want the inventory adjusted. Enter Store ID or Warehouse ID (Enter 1 for a single location). (This is a mandatory field)

SourceType*: Enter the source type (S for store or W for warehouse) depending on where you want the quantity adjusted. This is a mandatory field)

ItemID*: Unique Item ID of the product (This is a mandatory field)

Quantity*: Enter the Quantity being adjusted (This is a mandatory field)

Remarks: Enter any remarks or comments. (This is an optional field)

Adjustment Type*: Indicate the type of adjustment you prefer. (Enter FINAL if the adjusting value in your quantity field will be your final quantity, enter ADD if you want to add additional quantities to your existing quantity, enter SUBTRACT if you want to reduce the value from your existing quantity)

UOM: Enter the name of UOM

Reason Code*: Enter the reason code for adjustment

Now, when you are ready with the import file, process with the steps below.

Importing Inventory Adjustment

Go to Utilities → Import→ Click on Inventory Adjustment Import
Upload Your File: Attach the Item file by simply Drag & Drop or uploading your CSV file directly from your computer by browsing for it.
Click Continue when done.
Column Mapping: Once the file is loaded the column headers from the file will be displayed below the heading Column Name. In the case of the column header from the file exactly matching the Console field name this will be automatically mapped and this is displayed in the Map to Field.
You can map and make sure all of the column fields data you're importing has been matched to its equivalent setting on Console.
Enter the email address to which you will receive the status of your import.
Click Continue.
Import will be Initiated → Click Finish.
You will be taken back to the Import page, where at the bottom you can see a section 'Recent Imports' which will show the details and current status of the imported file.
Click on the Status (highlighted in blue color) to view the Status Report- This will list both Imported Records as well as Failed Records with a reason for the failure. You also have the option to Download the Failed Records by clicking on the Download button. You can correct the remaining failed record and precede to reimport them.
Once done you can see the Status as COMPLETED

Commit Inventory Adjustment

Go to Console --> Inventory --> Inventory Adjustment

All the inventory adjustments will be listed here. The inventory adjustment number is automatically generated that can be used to track the adjustment.

The user can commit the inventory adjustment by selecting the transaction number with a status OPEN. Review items and Final Quantity, then commit by clicking a Commit button. No receipt is generated as it presumes you already have one. If you do not have one or wish to have one with more detail than the import initiate adjustment receipt then you can do so using the reprint receipt function.

By default, when initiating the inventory adjustment the status of orders will be 'OPEN'.

Click on the 'Transaction No.' will take you to the adjustment summary page where you can see all the information regarding that particular adjustment such as

Adjustment Transaction Number: Auto-generated inventory adjustment number.

Adjustment Type: Indicates if it is a Standard Adjustment

Location: The name of the store/warehouse where the adjustment is done

Status: Shows the status of the inventory adjustment

Initiated by: Will auto-populate once the adjustment is saved

Initiate Remarks: The remarks/comments from the import if provided.

Click on the Commit button to commit the inventory adjustment transaction. You will get a commit confirmation popup, click COMMIT to proceed. A Merchandise Adjustment Receipt will display and can be printed.

The user also has the option of closing/canceling the adjustment before committing.

To close the Adjustment, click the Error button which will close the transaction which technically means that the adjustment is canceled and will not adjust items in it.

The user can print or download the inventory adjustment receipt as a pdf file.

Once the adjustment is committed then the user can verify the QOH from Inventory Balance Report.

Revert Committed Inventory Adjustment

The system allows authorized users to undo committed inventory transactions for better control and correction of inventory movements. This feature is applicable to both Inventory Transfers and Inventory Adjustments, enabling users to revert a committed transaction back to the Initiated status and return the inventory to the In Transit location.

Accidental commits in inventory operations can cause inaccurate stock levels at source or destination locations. This enhancement ensures data accuracy by allowing users to correct such errors while keeping a detailed audit trail of actions performed.

Users with Admin or Financial roles can access the option to undo a committed transaction by clicking on “Reverse Committal”.
Clicking on “Reverse Committal” will prompt the user to confirm the reversal of the transaction.
Once undone, the transaction status changes from Committed to Initiated.
Inventory involved in the transaction is automatically moved back to the In Transit location.
After undoing, the transaction can either be re-committed or marked as Errored Out if needed.
Every action is recorded for compliance and tracking.

Each Revert Committal action is tracked in the system's Audit Log, including:

Transaction ID
User who performed the action
Action Taken (Undo)
Details
Date & Time

The log is accessible through the Audit Log section for review and auditing purposes.

Reason Code in Inventory Adjustment

A Choose Reason selection is mandatory when performing any of the following actions in an Inventory Adjustment:

Initiate
Commit
Error

When a user selects Initiate, Commit, or Error, a confirmation modal is displayed.

The modal includes a Choose Reason dropdown.

Selecting a reason from the list is required to continue.

Users cannot proceed with the action until a valid reason code is selected.

To know more about reason code, Click Here

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