A Stock Adjustment can be used to increase or decrease your product quantity. Performing a stock adjustment affects:
a Moving Average Cost
b Stock on Hand
c Cost of Goods Sold
Things to take note 📝
- Creating a New Stock Adjustment will affect your Moving Average Cost (MAC).
For example, if you have damaged goods or you received promotional goods that you did not pay for, you will need to create a Stock Adjustment, and factor the cost to your product’s current Moving Average Cost. - However, if you wish to adjust your stock levels as a result of performing a stocktake, you should use QuickBooks Commerce's Stocktake tool instead. If you are unsure of which tool to use, read this article.
It is important to understand how your MAC works in QuickBooks Commerce. Learn more here.
How to Create a Stock Adjustment?
From the main navigation bar, click on the Stock Control tab and then 'Stock Adjustments'. On the right-hand corner of the page, click the Create New button and choose ‘New Stock Adjustment’ from the drop-down menu.
First, choose the Stock Location of the stock that needs to be adjusted and then select an Adjustment Reason.
The available Stock Adjustment reasons are:
- New Products
- Returned
- Damaged
- Shrinkage
- Promotion
- Stocktake
Next, enter the item that needs to be adjusted. Also, enter the quantity of stock that needs to be adjusted.
If you have incurred more or fewer costs, and wish to adjust your cost via a stock adjustment, you can edit the Cost Per Item field when the quantity change is positive.
For example, for promotional goods that are given to you for free, you can change the cost per item to zero. The MAC will be recalculated accordingly for your variant.
When you enter a negative number in the Quantity Change field to reduce stock from your current inventory, QuickBooks Commerce will default the Cost Per Item to the latest Moving Average Cost of the product. This is to ensure the data calculation is accurate for Stock on Hand and Cost of Goods Sold.
Lastly, add any notes (if required) and click 'Save'. Your changes have now been updated.
Take a moment to review the stock adjustment summary. If you made a mistake, you can ‘Void’ the Stock Adjustment.
There will be a pop-up asking you to confirm:
Done and dusted! 🧹✨