Inventory · Daily operations · 8 min read

Count stock and post adjustments

Run a cycle count that a second person approves, and post stock adjustments for damage, loss or gain with the right approvals.

Before you begin

• The Cycle counts switch must be on for counts.
• The counter and the approver must be different people. Both need inventory.operate.
• Adjustments need stock.adjust.

Run a cycle count

1. Open Inventory > Warehouse > Cycle counts and click New count.
2. Choose the Location. Its bins are included.
3. Optionally set Only class to A, B or C to count one ABC class.
4. Tick Blind count to hide the system quantity; counted quantities then start at 0. The default comes from the class's count policy.
5. Tick Freeze the location while counting so nothing moves under you. While frozen, transfers and adjustments touching the location are refused.
6. Click Start count. The count opens with the location's lines.
7. Enter the Counted quantity on each line and click Save counts.
8. If a line differs by more than the class's recount percentage, the count goes to Recount. Count that line again and save. The system refuses approval until you do.
9. A different user opens the count and clicks Approve.

What happens next

On approval the message says 'Approved. The difference is posted.' Stock is corrected, one journal entry is posted for the net value between Inventory and the adjustment account, and the freeze lifts. The count appears in Reporting > Count variances as counted minus system quantity (negative means a shortage).

Example: system 20, counted 17 gives a variance of -3. If the average cost is AED 10.00, AED 30.00 is posted to the adjustment account.

Count policy

Open Inventory > Configuration > Count policy & ABC. For classes A, B and C set how often to count (days), whether counts are blind, the recount percentage and whether to freeze. Click Classify ABC to class products by their issue value over the last 365 days. The Counts due list shows what is overdue, and Count this class starts a count for the first warehouse's stock location.

Post a stock adjustment

1. Open Inventory > Warehouse > Stock adjustments and click New adjustment.
2. Choose the Warehouse, the Reason and the Date. Add Notes if useful.
3. Add lines: Product, Location (inside the warehouse), Change (signed) and, for tracked products, the lot or serial. Unit cost applies only to gains; blank uses the current average.
4. Click Save, then Submit.

The reason fixes the sign of the change. Damage, Loss, Expiry and Scrap only take stock away; Gain only adds. Correction, Migration and Ownership correction may go either way. Zero is refused.

If the value is within the company's approval value, it posts at once and links its journal entry. If it is higher, it waits. A different person with stock.adjust opens it and clicks Approve and post, or Send back to return it to draft. The raiser cannot approve their own adjustment.

Example: threshold AED 1,000.00. Damage of 1 unit worth AED 12.50 posts immediately. An adjustment worth AED 1,500.00 waits for a second person.

Quick adjustment

On Inventory > Operations > Stock on hand, company administrators have a Stock adjustment button: choose product, signed quantity, reason and date, then Post adjustment. It works only for non-tracked goods. It posts at once and does not apply the approval threshold or the count freeze. For anything of value, use a Stock adjustment document instead.

Good to know

• A posted adjustment cannot be cancelled. Correct it with another adjustment.
• A date in a hard-closed month is refused, as is a backdated date when the policy forbids it.
• Counts and adjustments of lot or serial products must name the lot or serial.