Outbound Adjustments

Inventory shrinks for reasons that have nothing to do with a customer sale — a pallet of goods damaged in transit, product consumed during quality testing, or stock written off after a count reveals it is simply gone. An outbound adjustment removes those units from your warehouse balance and records the cost impact in the GL, so your Inventory valuation stays accurate without fabricating a sales transaction.

How to create an Outbound Adjustment

1. Go to Inventory > Outbound Adjustments.
2. Click the + Data Entry button and select New.
3. Select the Warehouse where Inventory is being removed.
4. Set the Posting Date (defaults to today).
5. Add a Reference Number if you have one (e.g., damage report number).
6. Add lines: select the Product, enter the Quantity and Price (cost value of the write-off).
7. For lot-, serial-, or expiry-controlled Products, enter tracking details per line.
8. Post the adjustment — the warehouse stock balance is decreased immediately.

Field reference

• Warehouse — the location losing the stock. Locked after creation.
• Posting Date — the date recorded on both the Inventory movement and the Accounting entry. Use the actual date the goods were condemned or confirmed missing.
• Reference Number — link this to a damage report number, an audit finding, or an internal write-off authorization so the adjustment is traceable if audited.
• Price (per line) — the cost value of the stock being removed. This reduces your Inventory Asset balance and flows to your Negative Adjustment expense account.

Document lifecycle

Tips

• Use outbound adjustments for write-offs and corrections only. If goods are going to a customer, they should flow through a Sales Order and Inventory Delivery — that way revenue, COGS, and the customer's history are all recorded correctly.
• For pack-size Products, enter the number of packs removed. CifraHQ calculates the unit quantity automatically.
• Posted adjustments debit the Negative Adjustment account and credit Inventory Asset. Talk to your accountant about whether to use separate accounts for different loss types — damage, obsolescence, and theft are often tracked separately for tax and insurance purposes.

Related: Inbound Adjustments · Inventory Deliveries · Inventory Counts · Inventory by Location · Account Priming · Audit Trail