Small and medium business | Business Central, N...

What's the best method to adjust inventory?

(2) Share

Report

Posted on by RH

396

We have an occurrence where the warehouse will lose inventory and/or then find it again.

I've noticed if using item journal it's easy to do but then only for negative adjustment does it work well. At the same time, if we do a positive adjustment it does not link to any specific vendor, the incorrect posting groups might be selected, cost history, and audit trail integrity wouldn't be on the same page. Is Physical Inventory Count/Journal better for this? Basically adding items or adding back items is the tricky part I would say.

Thanks in advance!

Categories:

Dynamics 365 Business Central

I have the same question (0)

All responses (10)

Answers (0)

Suggested answer

YUN ZHU 95,739 Super User 2025 Season 2 on at

Like (1)

Report

Hi, Item Journal is the simplest way to do this. Whether you are doing Physical Inventory Journals or Adjust Inventory on the Item List, all of them are posted through the Item Journal.

In addition, you are only adjusting the inventory. It is not recommended to re-purchase through Purchase Order, which will result in unrequested invoices.

Hope this can give you some hints.

Thanks.

ZHU

Was this reply helpful? Yes No
RH 396 on at

Like (0)

Report

I understand. However if items are added in this matter (say lost 50, but the warehouse found 20 next month they misplaced) do those items still link to the original purchased? In my experience they become their own entity standalone (if using item journal) and almost like a writeoff by themselves not linked to the original purchase.

Please help clarify this part, thanks.

Was this reply helpful? Yes No
Suggested answer

Yi Yong 2,569 Super User 2025 Season 2 on at

Like (0)

Report

Hello,

Let me know if I am understanding you correctly.

In Negative Adjustment, you can point to the specific entry and reduce the remaining qty.

However, in Positive Adjustment, you can't point to the specific entry and increase the remaining qty. Thus, the Cost History is not linked.

If this is what you are asking, then yes, Positive Adjustment entry can't be used to add or increase the remaining qty of the existing entry.

It will be a standalone new entry.

You can change the Posting Group and use the correct one before posting, you may need to personalize the field out.

Was this reply helpful? Yes No
Suggested answer

RockwithNav 8,637 Super User 2025 Season 2 on at

Like (0)

Report

As mentioned by You Zhu, this new feature is damn awesome to adjust inventory, its very simple and anyone can adjust it, Have a look.

Was this reply helpful? Yes No
Sagar Dangar, MCP 799 Super User 2025 Season 2 on at

Like (2)

Report

Hi,

Item journal is best for positive/negative adjustment of products.

You can try below example according to your scenario:

Negative adjustment: For example, lost 50 items, do 50 items negative adjustment and suppose it's generated item ledger entry No.=242

Positive adjustment: Found 20 items, do 20 items positive adjustment with "applies-to entry"=242 and if you want to link item with purchase(vendor) then fill "source type"="vendor" and "source no."="vendor no.". Additionally, you can use external document number as purchase invoice number.

For remaining 30 lost items, you can do same positive adjustment if found again.

I hope this will work

Thanks,

Sagar Dangar

Was this reply helpful? Yes No
RH 396 on at

Like (0)

Report

Sagar,

Appreciate your answer it's the closest to what we're looking for. However, it seems that only when we do a negative adjustment whether thru item journal and/or physical inventory journal that it can link the the original purchase. When doing a positive adjustment i'm not able to select anything, unless I remove all the filters, then it brings up perhaps the shipment receipt in Applies-to-Entry. It basically is still a standalone entry in which also we'd have to look up, if adding back to the same lot, what the original purchase cost was as not to keep the costs streamlined. It's quite unusual. Also I noticed that when the client did a negative adjustment using positive adjustment but with negative numbers then it throws off our reporting on the PowerBI side (it doesn't register the actual cost correctly).

Was this reply helpful? Yes No
RH 396 on at

Like (0)

Report

Typo: as to keep the costs streamlined** since it defaults to the FIFO Unit Cost.

Was this reply helpful? Yes No
Suggested answer

YUN ZHU 95,739 Super User 2025 Season 2 on at

Like (0)

Report

In addition, if the Item Tracking is enabled, you can track by Lot or Serial No.

https://learn.microsoft.com/en-us/dynamics365/business-central/inventory-how-work-item-tracking?wt.mc_id=DX-MVP-5004336

Thanks

ZHU

Was this reply helpful? Yes No
Gerardo Rentería Ga... 25,367 Most Valuable Professional on at

Like (1)

Report

Hi, good day
I hope this can help you, and give you some hints.

https://learn.microsoft.com/en-us/training/modules/adjust-inventory/

https://usedynamics.com/business-central/inventory/adjustment/

Best Regards
Gerardo

Was this reply helpful? Yes No
RH 396 on at

Like (0)

Report

I think most of the answers here are showing the process. What's important is which effect achieved is the correct one based on our setup and for what I'm asking. I'm going to assume that because of lot tracking (which is what we use) that the unit costs will be correct over time. However, especially for adding items it's important to reference the original unit cost and not the FIFO cost on item card. Hopefully this way it will keep the calculations congruent if adding items back to inventory, etc.

Was this reply helpful? Yes No