Enter an 'increase quantity' inventory adjustment

You might need to enter an 'increase quantity' adjustment following an inventory count, or if there has been an error entering a paid invoice or bill. You can also use this inventory adjustment to enter opening balances if you have more than 4000 tracked inventory items with opening balances.

Before you begin, make sure you've reviewed these important points.

What you need to know about inventory adjustments

  1. Go to Accounts, then select Inventory.

  2. Click on the line to open the tracked inventory item you want to adjust.

  3. Click Options, then New adjustment.

    Image showing inventory adjustment option selected.

  4. In the Adjustment type field, select Increase quantity.

    Image showing increase quantity selected.

  5. Complete the following fields:

    • Date - Select a date or leave to keep today's date.

      The date you enter is the date of the adjustment journal in Xero. However, Xero updates the quantity on hand as at today's date. Xero does not backdate or forward date inventory quantity adjustments.
    • Either Adjustment or New qty on hand - Changing a figure in one of these fields will automatically update the other field.

      Do not change the Cost Price field. If you need to change the item's value, use a revaluation adjustment.
    • Adjustment Account - Select the account from your chart of accounts where you want to record the inventory adjustment. You can add an adjustment account if necessary.

    • Notes - Enter a reason for the adjustment.

      Image showing increase quantity fields completed.

  6. Click Review Adjustment.

  7. Check that the adjustment details are correct. Click Post Adjustment.

    Image showing adjustment details for checking.