Enter a 'decrease quantity' inventory adjustment

You might need to enter a 'decrease quantity' adjustment following an inventory count, or to account for damaged items.

Before you begin, make sure you've reviewed these important points.
What you need to know about inventory adjustments

Enter the adjustment

To enter the adjustment:

  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 Decrease quantity.

    Image showing decrease 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.

    • 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.
      You may need to create an inventory adjustment account

    • Notes - Enter a reason for the adjustment.

    • Image showing adjustment fields completed.

  6. Click Review Adjustment.

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

    Image of adjustment details for checking.

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