Stock adjustments

A stock adjustment changes how much of an item you hold, without a sale or a purchase. Use it for stock that is damaged, lost, found or recounted. Opening stock is the same screen, used once to enter what you had on the shelf when you started. Saving updates your stock and your accounts together. The value goes in or out of Inventory. The other side is Inventory Gain or Loss for an adjustment, or Opening Balance Equity for opening stock.

Where

Inventory › Stock › Adjust stock (to enter one). Inventory › Adjustments (the list of saved documents)

Number

ADJ-000001 for an adjustment and OPEN-000001 for opening stock, given when you save

Posts to

Adjustments: Inventory and Inventory Gain or Loss. Opening stock: Inventory and Opening Balance Equity

Who

Managers and admins post adjustments. Only admins post opening stock or delete a document

What it’s for

• Stock lost, damaged or found. Choose Reduce or Increase, and say why.
• A recount of one item. Choose I counted. You type what is on the shelf, and the app works out the change. To count a whole location, use Stock counts. A count posts its differences as one adjustment.
• Opening stock. Admins enter the stock they already had, once for each item and location. You can also start it from the product form (see Products). The rules are below.
• Fixing a saved document. Open it under Adjustments, and edit or delete it from its Corrections tab.
• Not for moving stock. To move stock between two locations, use Transfers. A transfer keeps the cost and does not touch your gain or loss account.
• Not for a delivery. Stock that arrives from a supplier is a goods receipt or a purchase. See Goods receipts.
• To see what you hold and how it moved, open Stock.

An adjustment has no VAT and no customer or supplier. It never touches cash or bank accounts.

Fields

Details at the top

Field	What it means	What it changes
Stock adjustment / Opening stock	The kind of entry. Only admins see the choice. A manager sees “You don’t have permission to enter opening stock.” Every entry starts on Stock adjustment	Opening stock books against Opening Balance Equity. An adjustment books against Inventory Gain or Loss
Stock location	The place the stock is in. Required. You can add a location from here if your role allows it	Which location’s stock changes
Date	Defaults to today. It cannot be after today in your company’s time zone	The date of the stock movement and of the journal entry
Reason	Why the stock is changing. At least 3 and up to 500 characters	Kept on the document, the stock movement and the journal entry
Quick reasons	Damaged, Lost, Found, Count correction and Other. Adjustments only	They only fill the Reason box. You can change the words

Items

One line for each item, up to 100 lines. Only active stock items are offered. Services and bundles are not.

Field	What it means	What it changes
Item	Type a name or code. The line shows the unit	The stock that changes. An item can be on the entry once
Change	I counted, Increase or Reduce. Opening stock has no choice, it only adds	I counted: you type the shelf count. Increase and Reduce: you type the change
Quantity	The count, or the change. Type it without a sign. The item’s unit sets the decimal places	How many units come in or go out
In stock	What the app shows at this location now. Display only	Used to work out a count and to warn you
Unit cost	The cost of each unit you add, in AED. Required for opening stock. Not asked for a Reduce	The value of the stock added. See The cost used
Stock after (adjustments) or Value (opening stock)	The stock left after this line, or quantity × unit cost	Display only

A line that adds stock and has no cost typed takes the item’s current average cost. The cost box then shows “average”. Typing 0 means the stock came free.

Buttons

Nothing touches your stock or accounts until Save adjustment or Save opening stock.

Entering a new document

Button	When you see it	What happens	Accounts
Adjust stock	Top of Inventory › Stock, and in a stock row’s ⋯ menu (that item and location are filled in)	Opens the entry form	No change
Review adjustment / Review opening stock	The entry form	Checks the entry and shows what saving will do. Press Ctrl+S for the same	No change
Back to editing	The review	Returns to the form with everything you typed	No change
Save adjustment / Save opening stock	The review	Saves the document. Stock, the movement and the journal entry are written together	Posts
Back to stock	The form and the review	Leaves the entry. The app asks first if you typed something	No change
Try again	After a save that got no clear answer	Sends the very same entry again. It cannot save twice	No second posting

After a save you see the toast “Stock adjustment ADJ-000001 saved” (or “Opening stock … saved”) with a button that opens the document.

On a saved document

Open a document from Inventory › Adjustments. It has two tabs, Items and Corrections.

Button	When you see it	What happens	Accounts
Print adjustment	An adjustment that is not deleted, for people who may print documents	Opens a print preview	No change
Edit adjustment / Edit opening stock document	Corrections tab, when editing is allowed for you	Opens the document in the entry form. Update adjustment (or Update opening stock) opens a review of the changes with a reason box. Update adjustment there saves, and Back to editing returns	Restated on its own date
Move to another location	Inside the edit form, when some of the stock was used	Moves what is left by a transfer dated today	Transfer only
Delete adjustment / Delete opening stock document	Corrections tab, admins only, when none of the stock was used	Asks for a reason, then removes the document	All effects removed
Back to stock adjustments	Any open document	Returns to the list	No change

Statuses you will see: Active and Deleted. A document corrected the older way, before editing existed, shows Cancelled or Replaced, and keeps its history. A deleted document is not listed. The Accounting details fold-out names the journal entry.

What gets posted

One document makes one journal entry, dated on the document’s date, with the reason in its memo. A document that adds only free stock makes no journal entry.

Opening stock

Example 1Opening stock: 10 units at 2,000.00Opening stock · reason 'Verified warehouse count'

• Quantity10
• Unit cost2000.00
• Value of the document20000.00

Account	Debit (AED)	Credit (AED)	Why
1200Inventory	20,000.00		Your stock value goes up
3150Opening Balance Equity		20,000.00	The other side of your opening balances
Total	20,000.00	20,000.00	Balanced

The item’s average cost becomes 2,000.00. Stock at that location goes up by 10.

Rules for opening stock, whether you start it here or from the product form:

• It must be the first stock entry for that item at that location. If anything else has already moved there, use an adjustment.
• It needs a quantity above zero and a unit cost above zero. For stock that cost nothing, use an adjustment and type a cost of 0.
• An item that is owed to customers at that location cannot have opening stock. See Stock sold before it arrived.
• Stock from a supplier is a purchase or a goods receipt, not opening stock.

Adjustments

An adjustment always uses the same two accounts. Only the direction changes.

What you do	Debit	Credit
Increase: stock found or recounted up, with a cost	1200 Inventory	5100 Inventory Gain or Loss
Reduce: stock lost, damaged or recounted down	5100 Inventory Gain or Loss	1200 Inventory

• A gain lowers your expenses and a loss adds to them. Both sit in one account, 5100 Inventory Gain or Loss, so it shows the net result.
• One document can hold increases and reductions. The entry then has both pairs of lines.
• Free stock adds nothing to the entry.
• Example: a count finds 2 extra units at an average cost of 4.00, so Inventory goes up by 8.00. Taking out 3 units at an average cost of 4.00 takes 12.00 out of Inventory.

Note

The app finds these accounts by what they are for, not by name or code. If your company has renamed one, the entry still goes to it. If one is missing or archived, nothing is saved.

The cost used

Stock	Cost used
Opening stock	The unit cost you type
Increase with a cost	The unit cost you type. The item’s average cost moves to a weighted average
Increase with the cost box empty	The item’s current average cost, so the average does not change
Increase with a cost of 0	Free stock. Value 0.00 and no journal entry. The average cost goes down, because the same value is shared by more units
Reduce	Quantity × the item’s current company average cost, worked out when you save. The review says “Worked out when saved”
Reduce that takes all that is left at a location	The exact value still held there. No rounding is left behind

The average cost is one figure for each item, across all locations. Your stock value, quantity and Inventory account stay in step after every save. A transfer is different: it moves stock at the source location’s own cost. See Transfers and How cost works.

Stock sold before it arrived

If you sold stock you did not have, an increase pays that off first, oldest sale first. The extra step uses 2060 Stock owed (estimated cost) and, when the real cost differs, Cost of Goods Sold. The same step is shown in Goods receipts. Two rules follow:

• Free stock is refused for an item that is still owed. Type the real unit cost.
• Opening stock is refused for an item that is owed. Use an adjustment instead.

Where it shows up

Place	What changes
Stock	The quantity at the location, and a new movement marked Adjustment or Opening stock with the document number
Inventory › Adjustments	A new row: number, date, location, reason, value and status. Value is the worth of all the stock added and removed together
Accounting journals and the day book	One entry with the memo “ADJ-000001 ‹reason›”. The day book calls an adjustment “Stock adjustment”
Balance sheet	1200 Inventory goes up or down. Opening stock also fills 3150 Opening Balance Equity
Profit reports	The net of gains and losses in 5100 Inventory Gain or Loss
The item’s average cost	Recalculated from all the item’s stock
Stock counts	An open count that includes the item shows Stock moved until you count that item again

What the app blocks

While you fill in the form

Each problem appears beside its field. All of them show at once, and nothing is sent.

Situation	What you see
No location	Choose a stock location.
A date after today	Choose today or an earlier date in the company time zone.
Reason too short (adjustment)	Say why the stock is changing, in at least 3 characters.
Reason too short (opening stock)	Explain why this opening stock is being entered.
No item on a line	Choose an item.
No quantity	Enter a quantity. or, for a count, Enter the quantity you counted.
A plus or minus sign in the quantity	Enter a positive quantity without a sign. Choose Increase or Reduce.
A count that equals the stock now	This matches the stock now, so nothing would change. Enter the quantity you counted, or remove the item.
Added stock with no cost, when the item has no average cost	Enter a unit cost.
More decimals than the unit allows	‹unit› accepts whole-number quantities only. or ‹unit› accepts at most ‹n› decimal places.
The same item on two lines	Already on line ‹n›.

When you save

A refusal leaves no half-written records: no document, no stock movement and no journal entry. The document number is not used.

Situation	What you see
Reducing more than the location holds	Only ‹n› ‹unit› in stock. Enter a smaller reduction.
A date earlier than the stock you take out, so the stock would be negative on that day	This posting would leave negative stock or an unmatched inventory value on an accounting date. Check the date and quantity against earlier stock receipts.
A date inside a locked period	The accounting period is locked through ‹date›. Choose a later date, or ask an administrator to reopen the period.
Opening stock for an item that already has stock history there	This item already has stock history here. Use a stock adjustment to change it.
Opening stock for an item that is owed to customers	This item has stock owed at this location, so it cannot have opening stock. Add the stock with a stock adjustment instead.
Free stock for an item that is owed to customers	This item is owed to customers at this location, so it needs its real unit cost: what was sold has to be costed from it.
Reducing an item whose average cost is zero, with no stock at that location	Stock with a zero average cost cannot be reduced.
A required standard account is missing or archived	Setup needed: the standard Inventory Gain or Loss account is missing or archived, so nothing was saved. Ask an administrator to review Shop & counter setup in Settings. The name changes with the account
The answer to a save never came back	An earlier save got no clear answer: ‹reason›, dated ‹date›, ‹n› item(s). Retry it to find out whether it went through. The form locks until you use Try again

Stock cannot go below zero. There is no switch for this on this screen.

Warnings that do not stop you

• On a line that takes out more than the stock shown: “Not enough stock. Saving will be refused.” The review adds Some reductions are larger than the stock we have. Saving will be refused unless more stock arrives. Go back to change them. The app checks again when you save, because the figure may be out of date.
• Opening stock for an item that already has stock: “Already has stock here. Use a stock adjustment instead.”
• Free stock: the line shows No cost (received free), and the review box Received free says no cost is recorded. Nothing goes into the books.

Editing or deleting a saved document

The Corrections tab says why before you click.

Situation	What you see
The period is locked	The accounting period is locked. Next step: Ask your accountant to review a current-period stock adjustment. This action will not reopen history.
Some of the stock was sold or moved	Some of this stock has already been sold or moved. You can still change other details, or adjust the stock instead. The used lines are locked, the other details can change, and Delete is not offered
The document holds free stock	This stock document has stock that was added at no cost, so it cannot be edited, deleted or voided. Record a stock reduction, or a new adjustment, to put it right.
An older document that was cancelled or replaced	Already voided or corrected. Open the latest version under Version history, or save a new adjustment
A deleted document	Deleted.
You edit the date into a locked month	This stock adjustment is in a month that is locked (through ‹date›), so it can’t be changed or deleted. Correct or cancel it with an entry dated today. Administrators can do this, and managers whose role allows it. To use a different date, choose one after ‹date›.
You change the location after stock was used	Some of this stock was already sold or moved from its location, so the document cannot move as a whole. Use “Move to another location” to transfer what is left; the units already used stay in the history of the old location.
Nothing was changed	Update stays off, and the bar says “No changes yet”
Someone else changed it first	This stock adjustment was changed by someone else. Reload it to see the latest version.
No reason	Enter a reason with at least 3 characters.
Your role cannot do it	A “Permission needed” badge and You don’t have permission to edit or delete this adjustment.

Who can do it

Action	Admin	Manager	Cashier
See Adjustments and open documents	Yes	Yes	No
Save a stock adjustment	Yes	Yes	No
Save opening stock	Yes	No	No
Edit a saved adjustment	Yes	Yes, including one an admin saved	No
Edit saved opening stock	Yes	No	No
Delete either kind	Yes	No	No

An edit never needs more rights than the first entry did. These are the standard roles. Your administrator can give a custom role each action separately in Settings › Users & access.

Fixing a mistake

1. Not saved yet. Use Back to editing on the review. Nothing has changed in your stock or accounts.
2. Saved, with a wrong quantity, cost, item, date or reason, and none of the stock used. Open the document, go to Corrections, and use Edit adjustment. Check the changes, give a reason, then Update adjustment.
   • The document is restated on its own date, with the same number and the same journal entry.
   • A reason is required, and Change history keeps the before and after.
   • A reduction is priced again at the current average cost only when its quantity or date changes. A change to the reason alone leaves its cost as it was.
   • An edit can add or remove items. Removing a line takes its stock and value back off.
3. Some of the stock was already sold or moved. The used lines are locked. Change the other details, or save a new adjustment for the difference. Past costs are not recalculated.
4. Wrong location. If nothing was used, change Stock location in the edit form. If some was used, use Move to another location. It transfers what is left, dated today, and the document stays as it is.
5. Entered twice or by mistake. An admin uses Delete adjustment, with a reason. The stock change and the journal effect are removed. The number stays reserved and is never used again. The deleted document leaves the list, and the change history keeps the reason. A delete is refused if later stock came from this stock.
6. A locked period, or free stock. The document cannot be changed. Save a new adjustment, dated in an open period, for the difference.
7. Opening stock was wrong. An admin edits it, if no stock of that item was used. Otherwise save an adjustment. To start again, an admin deletes the opening document and enters it afresh.
8. A count was wrong. A posted count cannot be changed. Do not edit the adjustment it made. Start a new count, or save a new adjustment here for the difference, using I counted. See Stock counts.
9. Stock sits in the wrong place. Do not adjust it. Use Transfers.