How to perform a physical inventory and adjust stock

A physical inventory checks whether ERP quantities match what is actually in the warehouse. You can count during a full stock check or focus on selected products and locations. A discrepancy becomes an adjustment only after you review and apply the count.

Create a count for the warehouse

1. Open Inventory > Physical Inventory and add a count.
2. Give the count a useful name, select the warehouse, and enter the reason or other details requested by the form.
3. Add the products you will check. You can start with a partial count for one area or product family.
4. Open the detail and count the physical units. Enter what you actually found, not the balance shown in ERP.

Use a consistent counting method: confirm the warehouse, separate damaged or not-yet-received products if your process tracks them separately, and record serial or batch details when applicable. This helps ensure the discrepancy reflects a comparable count rather than mixed locations or statuses.

Review and apply discrepancies

1. Compare the counted quantity with the expected ERP quantity for each product and warehouse.
2. Investigate discrepancies before applying: check for a receipt, issue, or transfer during the count, or a count performed at another location.
3. When the information is correct, choose Apply counts and confirm. Applying updates stock to match the accepted counted quantities.
4. When complete, return to Stock and the movement history to confirm the new balance and adjustment.

In the example, the count found one fewer unit than ERP expected for a product. After applying the count, ERP recorded a one-unit adjustment issue. The stock screen and movement history let you review the result from two perspectives.