Cloudy Revenue Inventory Knowledge Base

Inventory Adjustment

The Inventory Adjustment object is used to record manual corrections and exceptional inventory changes that occur after inventory has been received or processed. It ensures that stock quantities remain accurate when inventory is affected by events such as Damage, Theft, or other unforeseen circumstances.

Each Inventory Adjustment is linked to the corresponding Inventory and Inventory Transaction records, providing a complete audit trail for inventory corrections. It captures important details such as the adjustment date, adjustment quantity, adjustment type, remarks, and whether damaged inventory is still available for sale or use.

This object plays a vital role in maintaining inventory accuracy, supporting stock reconciliation, improving warehouse operations, and ensuring reliable inventory reporting.

Why is it Used?

The Inventory Adjustment object is used to:

• Record inventory losses due to damage or theft.
• Maintain accurate inventory quantities after manual corrections.
• Support stock reconciliation and warehouse audits.
• Track inventory adjustments with complete audit history.
• Link inventory corrections to the original Inventory Transaction.
• Record reasons and remarks for inventory changes.
• Manage damaged inventory that can still be sold or utilized.
• Improve inventory accuracy across warehouses.
• Support inventory valuation and operational reporting.
• Ensure compliance with inventory control processes.

Key Features

📝 Manual Inventory Corrections

Allows authorized users to record inventory adjustments for damaged, stolen, or manually corrected stock quantities.

📅 Adjustment Date Tracking

Stores the exact date when the inventory adjustment occurred, providing accurate historical records for inventory audits.

📦 Inventory Integration

Directly links each adjustment to the corresponding Inventory record, ensuring stock balances remain synchronized.

🔄 Inventory Transaction Reference

Associates every adjustment with the related Inventory Transaction, creating a complete audit trail from the original inventory movement to the final adjustment.

⚠ Adjustment Type Classification

Supports multiple adjustment categories including Damage, Theft, and Other, allowing businesses to classify inventory losses appropriately.

✔ Available Despite Damage

Provides the ability to identify damaged inventory that is still usable or saleable instead of completely removing it from available stock.

📊 Accurate Inventory Reconciliation

Automatically updates inventory quantities to maintain accurate stock records and simplify reconciliation processes.

📈 Inventory Reporting

Supports inventory variance reports, warehouse audits, and operational analysis by maintaining a complete history of inventory adjustments.

Checkbox Functionality

The Inventory Adjustment  object includes checkbox fields that control processing behavior.

Example Business Scenario

Scenario: Damaged Maruti Dzire During Warehouse Inspection

ABC Automotive Pvt. Ltd. performs a routine warehouse inspection at the Central Warehouse.

During inspection, 5 Maruti Dzire vehicles were found with minor transport damage.

The vehicles can still be sold after minor repairs, so an Inventory Adjustment is recorded.

• Inventory: Maruti Dzire Inventory
• Inventory Transaction: Receipt Transaction
• Adjustment Type: Damage
• Adjustment Date: 10-Jul-2026
• Quantity Adjusted: 5 Units
• Available Despite Damage: ✔ Enabled
• Remarks: Minor body scratches caused during transportation. Vehicles require cosmetic repairs before delivery.

System Behaviour :

• The user creates an Inventory Adjustment record.
• The adjustment is linked to the appropriate Inventory record.
• The related Inventory Transaction is referenced automatically.
• Adjustment quantity is recorded.
• Adjustment type is stored as Damage.
• Since Available Despite Damage is enabled, the vehicles remain available for sale after repair.
• Inventory history is updated for audit purposes.
• Warehouse inventory reports reflect the adjustment.

Outcome:

• Inventory quantities remain accurate.
• Damaged inventory is tracked separately.
• Complete audit history is maintained.
• Warehouse teams can monitor inventory losses.
• Finance and operations receive accurate inventory reports.
• Inventory reconciliation becomes easier.
• Businesses maintain better inventory control and compliance.