Stock Adjustments, Shrinkage & Write-offs
Account for physical inventory discrepancies discovered during cycle counts or warehouse spot checks.
[IMAGE - Stock adjustment form showing physical count vs system count variance and adjustment reason dropdown]
Processing Write-offs
Record damaged or lost items by selecting Inventory Adjustment and posting the valuation difference directly to operating expenses.
Accounting & Ledger Impact
| Account Name | Code | Classification | Debit | Credit |
|---|---|---|---|---|
| Inventory Shrinkage Expense | 5450 | Operating Expense | Discrepancy Cost | - |
| Merchandise Inventory | 1200 | Current Asset | - | Discrepancy Cost |
Note: Adjustments reconcile book inventory quantities with physical warehouse counts.