How to adjust stock and read stock reports

Step 1: Count the stock

Count each item physically and note the quantity and location. Count when stock is not moving, or note any movement during the count.

Step 2: Compare with the system

Open the stock report and compare the counted quantity with the system quantity for each item.

Step 3: Post a stock adjustment

For each difference, create a stock adjustment for the item and location, enter the quantity to add or remove, and write the reason, such as damage, loss or counting error.

Step 4: Review

Look at the adjustments after the count. Many adjustments for one item usually point to a process problem, such as goods issued without a document.

Good habits

• Always give a reason
• Count high-value items more often
• Investigate repeat differences instead of only adjusting them