---
title: "Inventory Adjustments"
description: "An inventory adjustment corrects a discrepancy between what your system says you have and what is physically in your warehouse."
---

> Documentation Index
> Fetch the complete documentation index at: https://docs.beelocity.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Inventory Adjustments

An **inventory adjustment** corrects a discrepancy between what your system says you have and what is physically in your warehouse. Adjustments are a normal part of warehouse operations — they account for damage, shrinkage, counting errors, expiry, and other real-world events.

## Adjustment Types

Each adjustment is categorized by the reason for the correction:

| Type                   | When to use it                                                                           |
| ---------------------- | ---------------------------------------------------------------------------------------- |
| **Cycle count**        | Discrepancies found during a scheduled [cycle count](cycle-counting.html).                 |
| **Physical inventory** | Corrections from a full warehouse-wide physical count.                                   |
| **Damage**             | Items damaged in storage, during handling, or in transit.                                |
| **Shrinkage**          | Unexplained inventory loss (packaging errors, unrecorded breakage, minor discrepancies). |
| **Obsolete**           | Items that are no longer sellable or usable and should be written off.                   |
| **Correction**         | A manual fix for a data entry error or system issue.                                     |
| **Found**              | Items discovered that were not previously recorded (e.g., found during reorganization).  |
| **Expired**            | Items that have passed their expiry date and must be removed from available stock.       |
| **Theft**              | Confirmed inventory theft.                                                               |
| **Return to supplier** | Items being sent back to the supplier (e.g., defective goods).                           |

## Adjustment Lifecycle

Adjustments follow an approval workflow to ensure accountability:

```
DRAFT --> PENDING APPROVAL --> APPROVED --> POSTED
                       \-> CANCELLED
```

| Status               | What it means                                                                                                                 |
| -------------------- | ----------------------------------------------------------------------------------------------------------------------------- |
| **Draft**            | The adjustment is being prepared. Line items and quantities can still be edited.                                              |
| **Pending approval** | The adjustment has been submitted and is waiting for a manager or supervisor to review it.                                    |
| **Approved**         | A manager has reviewed and approved the adjustment.                                                                           |
| **Posted**           | The adjustment has been applied to stock levels. This is final — stock quantities are updated and a stock journal entry is recorded. |
| **Cancelled**        | The adjustment was cancelled. No changes to stock.                                                                            |

The **road** at the bottom of an adjustment's page walks these four steps from left to right: the ones already passed are ticked, the one the adjustment is at is filled, and the next one is a button — every move is yours to make. Rest on a step to see when it was reached and by whom. Clicking the step it is at opens the map instead: every status with an arrow for each move, the ones you can reach from here clickable. **Cancelled** hangs off the step the correction left from, and there is nothing after **Posted** — once the stock has moved, a mistake is put right by a second adjustment rather than undone.

## Creating an Adjustment

1. Go to **Adjustments** in the sidebar under **Inventory** and click **New**.
2. Fill in:
- **Adjustment number** — a unique reference (e.g., `ADJ-2026-001`).
- **Warehouse** — the warehouse where the adjustment applies.
- **Adjustment Type** — the reason for the correction (damage, shrinkage, cycle count, etc.).
- **Adjustment Date** — the date of the correction.
- **Reference Number** — an optional external reference.
- **Reason** — a description of why the adjustment is needed.
3. Save the adjustment in **Draft** status. Its details are on the left of the page and its **Lines** are beside them on the right.
4. Add a line for each item being corrected, then submit it for approval when ready.

The **Adjustments** list searches by number, reference or reason, and its filter button narrows it
by **Type**, **Status** — the drafts still to submit, the ones awaiting approval — **Warehouse**, an
**Adjustment date** range, or a band of **Lines** or **Cost impact** (see
[Working with lists](../getting-started/working-with-lists.html#narrowing-the-list)).

## Adjustment Lines

The lines sit beside the adjustment's details, and can be written while it is still a draft. Each one is a specific item being corrected:

- **Expected Quantity** — what the system says you should have.
- **Actual Quantity** — what was physically counted or observed.
- **Adjustment Quantity** — the difference (calculated automatically).
- **Variance Percentage** — how far off the count was from expectations.
- **Reason Code** — a specific reason for this particular line's discrepancy.
- **Cost impact** — what the correction is worth in all.

## Approval Workflow

Adjustments require approval before they affect stock levels. This prevents unauthorized changes and creates an accountability chain:

1. The warehouse worker writes the adjustment and clicks **Pending approval**, the next step on the road at the bottom of the page. The configured workflow picks the right approvers — there is no need to choose them by hand.
2. The decision is routed to the assigned approver's [Inbox](../approvals/inbox.html), where they review the adjustment, its line items, and the stated reason.
3. The approver can **approve**, **reject** (with a required reason), or **delegate** the decision to another user.
4. Once all required approvers sign off, the last step on the road is **Posted** — clicking it updates stock levels and writes a permanent [stock journal](stock-journal.html) entry.

The full chain of decisions, including any rejections and the reasons given, is kept permanently on the adjustment for audit purposes.

> **Tip:** For high-value adjustments (e.g., above 50,000 DA), set up a workflow with a second level of approval. Approval workflows route differently based on threshold amounts so high-impact corrections automatically get extra scrutiny.

Source: https://docs.beelocity.com/en/inventory/inventory-adjustments/index.mdx