An inventory adjustment transaction is used to perform on-the-fly corrections to the quantities of a product at a specific location. This can result in changes to on-hand and/or available amounts.
Inventory adjustments must support the following transaction types:
Modification of a quantity that results in either a gain or loss in inventory value. This occurs when there is a change in the ‘on-hand’ total. (i.e., reducing the amount of New Units by one)
Modification of Statuses can when there is no change in on-hand quantity but a change in the amount ‘Available.’ (i.e., adjusting 2 units from a ‘new’ to a ‘defective status.)’
A Combination of #1 and #2
This transaction is primarily used to address the need ‘write-off’ inventory (and reducing inventory levels) due to loss caused by theft, breakage or spontaneous combustion, etc. However, the IA is also used to allow adjustments for gains, in addition to losses.
Inventory Adjustments capture details of the actual quantities and/or serial numbers per product per Iine.
The following Transfer Statuses and conditions are supported by Inventory Adjustment:
Transfer Status
Description
Rules
New
Assigned during the creation of a IA
Pending
Assigned when IA transaction is created, saved and awaiting approval.
A User can start an IA and can ‘save’ work in progress before finalizing the transaction.
An IA transaction must support a save process, to allow editing, work in progress, etc.
User security privilege
Saving of inventory on IA restricts availability for sales or other Inv. Transaction. (warn for non-serialized, restrict use of ESN)
Approved
The IA Transaction has been approved and the inventory levels of the location impacted are updated per the transaction.
User security privilege
An IA transaction must support an approval process that completes the transaction and commits
Void
Assigned to an IA transaction that is to be reversed.
Voiding an IA manually is a user-security privilege.
Reason Codes
When performing an Inventory Adjustment transaction, you must enter a reason for the transaction.
Since Inventory is being recorded as entering or leaving the custody of the retailer/carrier, the reason code provides another level of characterization for the transaction.
This characterization can be used for reporting and GL purposes. For an IA, the following default reason codes must be supported:
Theft
Breakage
Disassembled
Other: (user identifies reason in memo. i.e. Elves teaching me a lesson)
User-Defined (system must support the configuration of IA reason codes)
A reason code is assigned to each IA transaction upon approval.
Serialized vs Non-serialized
A product can be defined as being serialized vs. non-serialized.
This break down of inventory allows for greater control over inventory availability, cost and history.
An ESN, when used in transactions, can properly store the entire inventory history of an item as it traverses the company from shipping dock to Consumer. This ESN and history allows for proper cost accounting of the item for use in WAC calculations.
Working with Inventory Adjustments
To access Inventory Adjustments:
From the Application menu, select POS Back Office > Inventory Adjustments. See: