What are Inventory Adjustment Reason Codes?

The Inventory Adjustment module is typically used in case of discrepancies in the inventory to balance the on-hand inventory with the system. It can be used to increase or decrease the inventory for an item. When we increase the inventory, it is called positive adjustment and when we decrease the inventory, it is known as negative adjustment.

There are Reason Codes associated with each inventory adjustment. These essentially depict the reason for changing the inventory. 

In Xoro, there are 3 Reason Codes by default:

  1. DMG (or Damaged): This code is used when inventory is damaged and hence not sellable. Hence, we need to pull the inventory out of the system.  As such, this code is used when inventory is decreased.
  2. FI (or Found Inventory): This code is used when due to some reason you have more inventory than recorded in the system and thus, you need to add inventory into the system. 
  3. NF (or No-Find): This code is used when you have less inventory on hand than recorded in the system. As such, when decreasing the inventory NF code is used to indicate that inventory could not be found.

Please note that the reason for Inventory Adjustment might not be limited to these 3 codes. For instance, you might be making a negative adjustment because some of your items have expired. In that case, you can also create your own Reason Codes for Inventory Adjustment using the Inventory Adjustment Reason Code module. 

How does it work?

  • Navigate to the Inventory Adjustment Reason Code module.
  • Fill in these details: Name, Code and Description.
  • Click on Save.

  • Use the code from the ‘Reason Code’ drop-down when making an Inventory Adjustment.

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