7 Inventory Adjustments

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7 Inventory Adjustments

Inventory adjustments can be made online or they can be received from an external system, such as a warehouse management system. There are two types of adjustments that can be made to inventory:

• Stock on Hand: The quantity of stock on hand, or salable stock, is increased or decreased. Both the quantity and value of the stock on hand are adjusted in the stock ledger.

• Unavailable Inventory: The quantity of stock on hand does not change, but the quantity of unavailable stock, or non-salable stock, is increased or decreased. In the stock ledger, the adjustment is recorded as a transfer between stock on hand and unavailable inventory. No adjustment is made to the stock value.

Prior to using the inventory adjustment functionality, status types and reasons for adjustments must be set up in the system. The Total Stock on Hand status type is reserved for adjustments made to salable goods. Any additional status types are user-defined and are reserved for adjustments made to non-sellable goods. The user-defined status types indicate why the goods are non-sellable. When adjusting total stock on hand, you must select a reason for the adjustment. The reason indicates why the total stock on hand must be adjusted.

Inventory Adjustments covers the following sections:

• Inventory Status and Adjustment Reasons

• Create an Inventory Adjustment by Item

• Create an Inventory Adjustment by Location

• Break Sellable Pack

• Product Transformation

Inventory Status and Adjustment Reasons

For effective management of inventory, Merchandising provides the option to classify unavailable inventory by user defined inventory buckets called inventory status types. This facilitates segregation of inventory that is not available to sell into specific purpose buckets such as customer returns or damaged. Inventory status types are mapped to inventory status codes, which are used in the stores and warehouses, in order to manage inventory updates sent from those solutions in Merchandising. The values that you enter for this in Merchandising should be coordinated with your store and warehouse inventory management solutions.

While creating inventory adjustments, users will also need to specify a reason for carrying out such adjustments. These inventory adjustment reason codes are also configurable and each reason code can further be specified to affect cost of goods sold or not. This may be useful if you use budgeted shrink, but wish to post some known shrinkage to the stock ledger separately.

Additionally, there are some situations where Merchandising creates an inventory adjustment automatically. For example, when transfers are reconciled or when the units on a stock count are approved. You can configure which of the reason codes you’ve created should be used by each of these transaction types.

These statuses, codes, reasons, and reason code configurations are created and maintained in Merchandising through spreadsheet upload and download processes. These processes are accessed through the main Merchandising task list under Foundation Data > Download Foundation Data and Foundation Data > Upload Foundation Data.

To add or update inventory statuses, inventory codes, and reason codes, you will select the template type of Inventory from the Download Data screen and then the template Inventory Status and Adjustment Reasons. Click the Download button and when prompted, choose to either open the .ods file that is generated or save the file and open it separately in the spreadsheet application of your choice. Once opened, there will be seven sheets that can be modified - Inventory Status Types, Inventory Status Type Trans, Inventory Status Codes, Inventory Status Code Trans, Inventory Adjustment Reasons, Inventory Adjustment Reason Tran, and Inventory Adjustment Tran Data.

Note

Inventory statuses, codes, and reasons cannot be deleted. If you wish to not have certain values displayed, then the Used flag should be set to No for the status, code, or reason. Additionally, the inventory adjustment reason code configuration cannot be added or deleted, only updated.

Add an Inventory Status Type

To add a new inventory status type, start in the Inventory Status Types tab, and, in a blank line in the template, select the action type of Create. Next enter a unique numeric status type code (up to 2 characters) and the description for the status type in the primary language (as defined in the Merchandising system options) of up to 120 characters. Next, the Used column indicates whether or not you are using this status actively in the system; valid values are Yes and No. If left blank, Yes is taken as default.

Next, if you wish to add translations for the status type in languages other than the primary language, this can be done in the Inventory Status Type Trans tab. Navigate to a blank row and select the action type of Create and the language in which the translated description will be entered. Then, enter the status code for which the translation applies. Finally, enter the translated description. The translated description can also be up to 120 characters long. This is an optional step.

Add an Inventory Status Code

To add a new inventory status code, start in the Inventory Status Codes tab, and, in a blank line in the template, select the action type of Create. Next enter a unique inventory status code (up to 10 characters). Next, optionally enter the inventory status type associated with this inventory status code in the Inventory Status column. If entered, then when an inventory update is made using this code and received from the store or warehouse, Merchandising will place the inventory in the indicated status. If no status type is assigned, then inventory will not be assigned to a non-sellable status. Then enter the description for the status code in the primary language (as defined in the Merchandising system options) of up to 120 characters. Next, the Used column indicates whether or not you are using this status code actively in the system; valid values are Yes and No. If left blank, Yes is taken as default.

If you wish to add translations for the status code in languages other than the primary language, this can be done in the Inventory Status Code Trans tab. Navigate to a blank row and select the action type of Create and the language in which the translated description will be entered. Then, enter the inventory status and status code combination for which the

translation applies. Finally, enter the translated description. The translated description can also be up to 120 characters long. This is an optional step.

Add an Inventory Adjustment Reason

To add a new inventory adjustment reason, start in the Inventory Adjustment Reasons tab, and, in a blank line in the template, select the action type of Create. Next enter a unique numeric inventory adjustment reason code (up to 4 characters) and the description for the adjustment reason code in the primary language (as defined in the Merchandising system options) of up to 120 characters. Next, specify if the inventory adjustments carried out with this reason code will affect cost of goods sold or not. Possible values are Yes and No. Lastly, the Used column indicates whether or not you are using this reason actively in the system; valid values are Yes and No. If left blank, Yes is taken as default.

If you wish to add translations for the adjustment reason code in languages other than the primary language, this can be done in the Inventory Adjustment Reason Trans tab. Navigate to a blank row and select the action type of Create and the language in which the translated description will be entered. Then, enter the reason code combination for which the translation applies. Finally, enter the translated description. The translated description can also be up to 120 characters long. This is an optional step.

Update Inventory Status Type or Code or Inventory Adjustment Reason

If you would like to update any details for existing inventory status type or code or inventory adjustment reason, a similar process will be followed as that described above for creating new status type, code or adjustment reason respectively. First, download the spreadsheet, and then navigate to the tab where you would like to make your updates.

The following columns can be updated in each tab:

• Inventory Status Types - Description, Used

• Inventory Status Type Trans - Description

• Inventory Status Codes - Inventory Status, Description, Used

• Inventory Status Code Trans - Description

• Inventory Adjustment Reasons - Description, Used

• Inventory Adjustment Reason Tran - Description

In the tab where you are going to make your updates, select the action type of Update, and then correct the value in the spreadsheet.

Update Inventory Adjustment Tran Data

If you would like to update the reason codes used for different transaction types, a similar process will be followed as that described above for creating updating status types, codes and adjustment reasons respectively. First, download the spreadsheet, and then navigate to the tab where you would like to make your updates. In the row where you are making your update, select an action type of Update and then make the changes as needed. The transaction types that can have reason codes configured for them are:

• Wastage Adjustment

• Stock Count Unit Variance

• Item Transformation at Finisher

• Transfer Overage Sending Location

• Transfer Overage Receiving Location

• Transfer Short Sending Location

• Transfer Short Receiving Location

• Transfer Short/Close Sending Location

• Transfer Short/Close Receiving Location

• Late Posting: Sale

• Late Posting: Return

• Late Posting: Transfer Out Sending Location

• Late Posting: Transfer Receipt

• Late Posting: PO Receipt

• Late Posting: RTV

• Late Posting: Inventory Adjustment

• Customer Order Return Without Inventory

• Wholesale Franchise Destroy On Site Return

For each of the above transaction types a different reason code can be configured for positive and negative adjustments, as desired. The following can be updated for each transaction type:

• Reason - enter the reason code that corresponds to the transaction type and whether the adjustment is a positive or negative adjustment.

• Used Ind - this indicates whether or not this configuration row should be used. If not used, then any transactions of this type written will not have a reason code associated to it.

In the tab where you are going to make your updates, select the action type of Update, and then correct the value in the spreadsheet.

Uploading Changes

For all actions defined above, once all the updates have been made to the data in the spreadsheet, save the file and close it. Then, return to the Merchandising screens and select Foundation Data > Upload Foundation Data from the main task list. In this screen, select the template type Inventory and the template Inventory Status and Adjustment Reasons. This will generate a process description automatically, but this can be updated if desired. Lastly, select the Browse button and navigate to the directory where you saved the updated spreadsheet.

To review the status of the upload and check whether any errors occurred, select the Foundation Data > Review Status task from the main task list.

See also Download/Upload Data from Spreadsheets and View Data Loading Status.

Create an Inventory Adjustment by Item

In the Inventory Adjustment by Item page you can manually adjust the inventory of an item at one or more locations.

Adjusting Inventory by Item

To adjust inventory by item:

1. From the Tasks menu, select Inventory > Inventory Adjustments > By Item . The Inventory Adjustment by Item page appears.

4. In the Adjustment Quantity field, enter the quantity you want to adjust. This field is a required field.

The unit of adjustment defaults to the standard unit of measure for the item. Change the value, if necessary.

Note

Adjustments for pack items can only be made at warehouses.

5. The weight field allows you to specify the total weight or weight per unit by entering a weight value and weight UOM.

Note

The weight fields will be displayed only for catchweight simple packs and catchweight 3/ 4 component items.

6. If you are adjusting the total stock on hand, the reason code is required for the adjustment. The reason indicates why the total stock on hand is being adjusted.

7. In the Inventory Identifier field, select inventory identifier type from the list as applicable and provide a value for the inventory identifier.

8. The Comments field will hold miscellaneous comments attached to the inventory adjustment.

9. Then choose one of the following options.

• Click OK to add the inventory adjustment to the table and close the pop-up.

• Click OK and Add Another to add additional inventory adjustments.

• Click Cancel to reject all entries and close the pop-up.

Editing Location and Adjustment Quantity

To edit an inventory adjustment, follow the steps below.

1. Select a record in the table.

2. Then select Actions > Edit , or use the Edit icon. The Edit Inventory Adjustment pop-up appears.

3. Edit the adjustment quantity, the unit of adjustment, weight and/or the reason code for the adjustment and update the comments as necessary.

4. Then choose one of the following options.

• Click OK to add your changes to the table and close the pop-up.

• Click Cancel to reject all entries and close the pop-up.

Create an Inventory Adjustment by Location

In the Inventory Adjustment by Location page you can manually adjust the inventory of one or multiple items at a location.

To adjust inventory by location:

Note

Adjustments for pack items can only be made at warehouses.

6. The Weight field allows you to specify the total weight or weight per unit by entering a weight value and weight UOM.

Note

The weight fields will be displayed only for catchweight simple packs and catchweight 3/ 4 component items.

7. If you are adjusting the total stock on hand, the reason code is required for the adjustment. The reason indicates why the total stock on hand is being adjusted.

8. In the Inventory Identifier field, select inventory identifier type from the list as applicable and provide a value for the inventory identifier.

9. The Comments field will hold miscellaneous comments attached to the inventory adjustment.

10. Then choose one of the following options.

• Click OK to add the inventory adjustment to the table and close the pop-up.

• Click OK and Add Another to add additional inventory adjustments.

• Click Cancel to reject all entries and close the pop-up.

Editing Items or Quantities

To edit an inventory adjustment by location, follow the steps below.

1. Select a record in the table.

2. Then select Actions > Edit , or use the Edit icon. The Edit Inventory Adjustment pop-up appears.

3. Edit the adjustment quantity, the unit of adjustment, weight and/or the reason code for the adjustment and update the comments as necessary.

4. Then choose one of the following options.

• Click OK to add your changes to the table and close the pop-up.

• Click Cancel to reject all entries and close the pop-up.

Break Sellable Pack

The Break Sellable Pack page allows you to break orderable packs down to their component items or inner pack levels. The inventory of packs and component items is adjusted accordingly. The number of packs is decremented and the number of inner packs or items is incremented. Pack items are inventoried at the warehouse level.

1. From the Tasks menu, select Inventory > Inventory Adjustments > Break Sellable Pack . The Break Sellable Pack page appears.

@ =} Save and Close Cancel

In the table you must add the items that you will create from the transformed item.

Once added, the items and their attributes appear in the table. The Total Cost in the Summary Row will be updated. The Total Cost to Remove must equal the Total Cost to Add before an adjustment can be made. Therefore, you can adjust the Quantity to Add and the New Cost columns directly in the table.

To add items you want to create from the transformed item, follow the steps.

1. From the Actions menu after entering the required details, click Add or click the Add icon. The Add Item page appears.

2. In the Item field, enter, select or search for the item you want to create. This field is a required field.

3. In the Quantity to Add field, enter the quantity for the item. This field is a required field.

4. In the New Cost field displays the current costs of the item. Edit the costs, if necessary. This field is a required field.

5. In the Inventory Identifier field, select inventory identifier type from the list as applicable and provide a value for the inventory identifier. This field only displays if Inventory Layer Tracking is enabled in System Options.

6. Then choose one of the following options.

• Click OK to create the item and add it to the table and close the pop-up.

• Click OK and Add Another to create additional items.

• Click Cancel to reject all entries and close the pop-up.

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In this guide

• Guide: Inventory Management User Guide
• Previous: 6 Shipments and Receipts
• Next: 8 Stock Counts