Stock Adjustment Reason

Overview

Stock Adjustment Reasons are used to clearly identify why inventory quantities are increased or decreased in the system. These reasons help businesses maintain accurate stock records, audit history, and transparent reporting.

Available default stock adjustment reason,

Sale
Damage
Theft
Loss
Return
Recount
Expired
Receive
Transfer
Void

Refer video tutorial for your detailed clarification,

How to Create Custom Stock Adjustment Reason

Follow below steps to create a custom stock Adjustment Reason,

Log in to Admin.
Go to Accounts & Settings.
Click Stock Adjustment Reason.
Click Add to create a new stock adjustment reason.
Enter the Stock Adjustment Reason Name.
Select the Default Stock Adjustment Type.
Click Save.

Note: There is no need to create a custom stock adjustment reason unless customized required in the stock reduction/addition reason. The default stock adjustment reason can be applied directly during inventory recount operations such as PO, credit note, vendor return, manual stock adjustment, waste management, and inventory audit.

Default Stock Adjustment Reason: Applicable Inventory Actions

Find the stock adjustment reason associated applicable inventory actions in posbytz,

Note: Customized stock adjustment reason created under this default stock adjustment type will applies for same inventory actions below.

Relevant Examples of Custom Stock Adjustment Reason

When returning multiple products to a vendor, using custom stock adjustment reasons helps track inventory accurately. Even if the purpose is the same (like damaged stock), the specific reason may differ — for example "Returned due to manufacturing defect" or "Returned due to damage during transit".

When stock is reduced due to promotional giveaways or free samples. - custom stock adjustment gives option to highlight appropriate reason to it "Promo free samples" or "Promotional Give aways".

For items that are expired or near expiry and must be removed from stock - there we can use custom stock adjustment like *"Expired stock removal” or "Near expiry clearance”.

Need Help? Common Questions About Stock Adjustment Reasons

Where to find and create stock adjustment reason?
What are the applicable areas of default inventory actions?
Is this custom stock adjustment reason creation mandatory?
Few realtime examples of custom stock adjustment reason.
Where we get stock adjustment reason for stock reduction or addition?
What are the available default stock adjustment reasons?
Where we need to do manual stock adjustment for the items?

Updated on: 19/01/2026

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