What is Inventory Adjustment?
Inventory adjustment refers to the process of making changes to the recorded quantities of items or products in a company's inventory. These adjustments are made to ensure that the inventory records accurately reflect the actual physical count of items on hand
Why do we need Inventory Adjustment?
Inventory Control: Inventory adjustments help businesses identify and address issues such as shrinkage (loss due to theft, damage, or obsolescence) and discrepancies between recorded and actual inventory levels. This control over inventory can lead to better decision-making in terms of purchasing, pricing, and production planning.
Financial Decision-Making: Accurate inventory data is vital for making informed decisions related to ordering, pricing, and overall inventory management. It ensures that businesses have the right amount of inventory on hand to meet customer demand without tying up unnecessary capital.
Auditing and Accountability: Accurate inventory records are essential for internal and external audits. Auditors rely on these records to verify the financial position of a company and the accuracy of its financial statements.
How should we do it with Magestore Retail Management Software?
