Stock Adjustment and Stock Revaluation

Stock Adjustments can be used to update/correct the quantity and price of products in your Inventory. Adjustments could be required for entering new stock, removing damaged or stolen stock, data entry error and so on.


Stock adjustments will update your stock quantities upon completion of the stock adjustment operation. The effective date is only for the purpose of dating Manual journals that will be generated by an adjustment. Therefore, the stock will be available for Picking based on the actual completion date of the Stock Adjustment and not based on the Effective Date of the transaction. In terms of cost, it will be based on the unit cost of one of the existing non-zero batches of the product. 


Prerequisites


Table of Contents

  1. Change stock quantities
  2. Skip transaction synchronisation
  3. Stock Revaluation
  4. View Stock Adjustments List
  5. Stock Adjustment Completed Notification


Change stock quantities

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Stock quantities can be changed by either amending the quantity of existing stock (Non-Zero stock on hand) or adding new stock (Zero stock on hand). You can edit existing stock quantities and add new stock in the same stock adjustment. 


NOTE: Non-Zero Stock on Hand refers to existing stock at a location. If there are no items in stock at a location, use Zero stock on hand even if the item is in stock elsewhere in your inventory management system. You can also do a Stock Transfer to move stock from one location to another. 


Stock Adjustment will cause transactions to be generated and synced to your accounting software (only applicable to users of Xero and QBO). If the stock adjustment is not 'real' (i.e. in the case of correcting a data entry error), this can be skipped.


Manually edit stock quantities

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NOTE: You can enter stock quantities by scanning product barcodes if you have a suitable scanner connected. Click Scan Barcode to scan item barcodes or manually enter the barcode number. Scanning multiple units of an item will automatically calculate the total stocktake quantity. The item will automatically be entered into the correct section (zero or non-zero stock on hand). If it is a zero stock on hand item, you will still have to manually enter the batch/serial number if applicable. 


To change stock quantities (in both cases):

  1. Navigate to Inventory -> New -> Stock Adjustment.
  2. Enter the stock adjustment Date.
  3. Enter a Reference (if applicable).
  4. Choose the correct Account to debit.


NOTE: Non-Zero Stock on Hand refers to existing stock at a location. If there are no items in stock at a location, use Zero stock on hand even if the item is in stock elsewhere in DEAR.


To adjust quantities of Non-Zero stock on hand stock:<

  1. In Non-Zero stock on hand Product, click + or Add more items.
  2. Choose a product from the dropdown menu. 
  3. The Location field will be pre-filled automatically with the location of the existing stock. 
  4. Enter the New Quantity. You can see the amount you have On Hand and Available.
  5. Enter any comments (optional).


To add Zero stock on hand stock:

  1. In Zero stock on hand Product, click + or Add more items.
  2. Select the Location of the new stock.
  3. Choose a product.
  4. Enter the Batch/Serial Number and/or Expiry Date (if applicable).
  5. Enter the Quantity and Unit Cost and any comments (optional).


For both adding new stock and changing existing quantities:

  1. Click Save to save as draft or Complete to finish the Stock Adjustment.
  2. Stock Adjustment Report can be saved or printed by clicking Print -> Stock Adjustment.


Once the Stock Adjustment has been completed, the transactions generated will be visible at the bottom of the screen. These will be synced with your accounting application next time data is synced. In the case of a 'fake' Stock Adjustment (for example, to correct a data entry error), this can be skipped.

User has the option to undo this Stock Adjustment. Clicking Undo will reverse all Stock Adjustment transactions and change the Completed status to Draft.



To skip generating transactions for a stock adjustment:

  1. Hover over Sync in the top toolbar.
  2. Check the pending sync entries by clicking Products: [x] require sync or View Sync History
  3. Change the status of the Inventory adjustment manual Journal entry (not Products) from Pending to Skipped.


Import stock adjustment details

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Multiple products can be entered at once by importing from a CSV file, which is much faster than manually editing stock adjustment details.


To import stock adjustment details from CSV:

  1. Navigate to Inventory -> New -> Stocktake/Count.

  2. Enter the stock adjustment Date.

  3. Enter a Reference (if applicable).
  4. Choose the correct Account to debit.
  5. Click Import.
  1. Download the CSV Stock Adjustment template.
  2. Fill in the CSV according to the instructions on the pop-up window.
  3. Choose the CSV file and click Upload.


Skip transaction synchronisation

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Stocktakes will cause transactions to be generated and synced to your accounting records. If the stocktake is not 'real' (i.e. in the case of correcting a data entry error), this can be skipped.


To skip generating transactions for a stocktake:

  1. Hover over Sync in the top toolbar.
  2. Check the pending sync entries by clicking Products: [x] require sync or View Sync History
  3. Change the status of the Inventory adjustment manual journal (not Product) entry from Pending to Skipped.



Stock Revaluation

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For some products, the available quantity may be correct, but the cost is wrong. Stock revaluation is a two-step procedure.

If for some products the quantity available is correct, but the cost is wrong, that means that the user needs to revalue the existing stock.

To revalue stock:

  1. The first step is to set the existing stock of the product to zero. Click Non-Zero stock on hand Product.
  2. Select a product to revalue.
  3. Enter 0 into the New Quantity field to write-off existing stock.


  1. Next, click Zero stock on hand Product to add the product with a new value. 
  2. Enter the original quantity into the Quantity field.
  3. Enter the new Unit Cost.
  4. Save and Complete the Stock Adjustment as usual.


View Stock Adjustments List

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You can view all historical Stock Adjustments and Stocktakes by navigating to Financial -> Stocktake/Inventory.

See the details of previous stock adjustments by clicking on each line.


Stock Adjustment Completed Notification

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The Stock Adjustment Completed Notification can be enabled so that responsible users can be notified once stock has been adjusted.  Like all other DEAR Inventory notifications, this notification has three types, namely:

  • Internal
  • Email
  • External


Once enabled, the Stock Adjustment Completed Notification is triggered when a stock adjustment operation is completed in DEAR.


See Using the Automation Module to know more about enabling this notification for your users.


IMPORTANT! An active subscription to the Automation module is required to access the Notifications feature of DEAR Inventory. Read this article to know more about subscribing to the Automation module.

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