What is Inventory Adjustment Voucher? How To Use Inventory Adjustment Voucher | Add Stock vs Reduce Stock

Created by Book Keeper Team, Modified on Tue, 22 Jul at 1:33 PM by Book Keeper Team

Inventory Adjustment voucher is an instrument that allows us to make adjustment in inventory to match the differences observed between recorded and actual inventory items in certain time duration for a particular item. In some instances, we see difference in the actual and recorded inventory due to various reasons which may be wastage, Breakage, Shrinkage, write-offs and for internal/personal use.

Let's say an example, you have lost 2 items but you cannot show it in sale, because these are not sold, then Inventory Adjustment voucher comes into picture.

To create Inventory Adjustment voucher,

Go to Dashboard > Transaction > Inventory Transaction > Inventory Adjustment

In the above mentioned voucher form, one has to select one option from add stock and reduce stock under the heading of Adjustment type followed by filling item name, quantity, rate and narration.

If you wish to increase stock, choose Add Stock and if you wish to reduce stock, choose Reduce Stock. Below table explains where to use Add Stock vs Reduce Stock.

Add Stock	Reduce Stock
We add stock, when we find actual inventory more than recorded inventory.	We reduce stock, when we find actual inventory less than recorded inventory.
It increases the total quantity available in the records.	It decreases the total quantity available in the records.
Causes Found any lost item, error in estimating the projected production etc.	Causes Item lost, error in estimating the projected production, wastage, Breakage, Shrinkage, write-offs and for internal use etc.
Affects Inventory Level but not accounts	Affects Inventory Level but not accounts

Enter Physical Stock Manually To Adjust [New Feature]

In day-to-day business operations, it's common to find discrepancies between the stock data in your accounting application and the actual stock available in your warehouse or go-down. To tackle this, we introduced a new option in Inventory Adjustment voucher, called Enter Physical Stock Manually To Adjust.

When you physically count your inventory and notice that the quantity differs from what's recorded in the system—whether it's more or less—you can use this option to update your stock levels accurately. This ensures that your inventory records always reflect the real, on-ground situation.