Definition and use of inventory adjustmentAuthor : Mohammad Ali , Founder and CEO of Inventory Software Services
Published : 2018-09-17 03:17:29 Last Modified :
Inventory adjustment is a process to adjust your inventory like stock, accounts, benefits or other information for any reason like wastage or mistakes of entries which are not editable or inconveniences activities.
Sometimes, you need to adjust the information of inventory without making a purchase or sale. But why? See the examples :
Example one:E Suppose some products of a consumer inventory destroyed due to insects. You need to adjust the stock to the right level.Stock adjust=previus stock-wastage product.
Example two:E Due to employees inconveniences activities the accounts of your management software and real-life accounts do not match. You may take a step for this inconveniences activities, but it also needs to adjust the accounts in the right level for going forward.
Example three:E Suppose, your business benefit showing in your management and your real benefit is not due to an expected reason, maybe any customer doesn't pay the full purchase amount and he or she is shifted to another country. There is no possibility to get paid. So it needs to adjust to your benefit.
Reasons for that you need to adjust your inventory :
There are another so many reasons for that you need to adjust your inventory information. Here I show some reasons :
1. Product destroys or waste due to caring or rain or insects or maybe other reasons.
2. Inconveniences activities of employees like theft or other activities.
3. Due to unpaid amount of customer payments and there is no possibility to get paid.
There are so many another reasons according to your business situations.
Advantages of inventory adjustments :
Due to inventory adjustments, you adjust the information and get the right level, so it's no problem to carry on your business for future. If you do not adjust your inventory, your next level information always show incorrect information and you need to adjust manually using your head which is not possible for every report and your management software may valueless for your business.
Disadvantages of inventory adjustments:
If you can adjust all the information of your inventory, you may don't care about any mistakes. And if your employees have the access to adjust any information, they also don't care or can do any inconveniences activities.