Adjusting inventory manually: when and how to use inventory adjustments
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Not all inventory changes happen through bills and invoices. Sometimes, you need to update your stock manually to reflect real-world changes.
- Adjustments are used to increase or decrease the quantity of tracked items manually.
- Typical use cases include correcting stock errors, handling damaged goods, or entering opening balances, etc.
- Inventory adjustments are often used after physical stocktaking to correct discrepancies between system records and actual inventory. This keeps your data accurate and audit-ready.
You can create an inventory adjustment for a single item or include multiple items under the same inventory adjustment using the same reference. This allows you to group related stock changes into one entry, and the steps to do that will be explained throughout this guide.
You can create an inventory adjustment for a single item or include multiple items under the same inventory adjustment using the same reference. This allows you to group related stock changes into one entry, and the steps to do that will be explained throughout this guide.
To add a manual adjustment, click on Products & Services from the main menu, then choose Inventory adjustments, Scroll down to the blank row at the bottom of the list where you can enter the details directly.
Start filling the following fields:
- Reference: Add a reference code or number to help you identify this adjustment later.
- Date: When the adjustment should be recorded.
- Currency: Choose the currency in which the item’s value will be recorded.
- Warehouse: Choose the warehouse where the stock change applies.
- Item: Select the tracked item you want to adjust.
- Description: Use this field to provide context for the adjustment.
- Qty +/-: Enter how much to add (+) or subtract (−) from inventory.
- Inventory value +/-: Enter the total value of the quantity you're adjusting.
This amount reflects how much the stock is worth—whether you're adding it (as an asset) or removing it (as a loss).
For example:
For example:
- If you're adding 100 units at 10 SAR each → enter 1,000 SAR.
- If you're removing 50 damaged units originally worth 5 SAR each → enter –250 SAR.
This value affects your accounting entry, so make sure it matches the real cost or estimated value.
If left 0.00, the quantity will update, but won’t impact your financials.
- Account: Pick the right account to reflect the reason for this change (e.g., Inventory Shrinkage, Inventory Opening Balance, etc.).
The account you choose defines how the inventory change is reflected in your financials.
For example, you might:
For example, you might:
- Use an Inventory account when entering an opening balance.
- Use an Expense account to record lost or damaged items. Or choose another account that best reflects the reason for the adjustment. Make sure the selected account aligns with the business purpose of the change—this helps keep both your stock levels and reports accurate.
- Total adjustment amount: This field is automatically calculated based on the quantity you enter and the unit cost.
If the inventory adjustment includes only one line, the Total Adjustment Amount will match the Inventory Value. If multiple lines are added, the Total reflects the sum of the inventory values from all lines in the same adjustment.
If the inventory adjustment includes only one line, the Total Adjustment Amount will match the Inventory Value. If multiple lines are added, the Total reflects the sum of the inventory values from all lines in the same adjustment.
- ID: This is the unique system-generated ID for this adjustment. You don’t need to fill it.
After filling all fields, press
Enterorclick away, and the system will automatically create the draft adjustment.
When an inventory adjustment is created, it starts in Draft status. This means it’s saved in the system but hasn’t yet affected your stock levels or accounting records. Only when the adjustment is marked as Posted does it become active—updating your inventory and generating the corresponding journal entry.
When an inventory adjustment is created, it starts in Draft status. This means it’s saved in the system but hasn’t yet affected your stock levels or accounting records. Only when the adjustment is marked as Posted does it become active—updating your inventory and generating the corresponding journal entry.


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