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# 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,

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### __How to Create Custom Stock Adjustment Reason__

Follow below steps to create a custom stock Adjustment Reason,

1. Log in to **Admin**.
2. Go to **Accounts & Settings**.
3. Click **Stock Adjustment Reason**.
4. Click **Add** to create a new stock adjustment reason.
5. Enter the **Stock Adjustment Reason Name**.
6. Select the **Default Stock Adjustment Type**.
7. 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.

![](https://storage.crisp.chat/users/helpdesk/website/-/9/a/e/7/9ae720b538edc000/stock-2_1xzv7jv.jpg =1000x850)


### __Relevant Examples of Custom Stock Adjustment Reason__

1. 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".**

2. *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".**

3. 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__

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