The warehouse manager may discover a discrepancy between the system-maintained on-hand quantity and the physical quantity of an item in between cycle counts. It is not necessary to wait for a cycle count to reconcile these balances. The warehouse manager can make an adjustment to the system-maintained quantity immediately.

For example, the NCAS allocates 20 maintenance jackets to an order. When warehouse personnel attempt to pick the jackets for the order, they locate only 18 jackets. While the system-maintained balance for this item is 20, the physical balance is only 18. The warehouse manager must decrease the system-maintained on-hand balance of the inventory detail record for this item so that it corresponds to the physical quantity of the item.

Two screens are available in the Inventory module to make inventory adjustments. The warehouse manager can use the Add Inventory Adjustments (AIAU) screen to make a positive adjustment to a system-maintained item quantity. The Deduct Inventory Adjustments (DIAU) screen is used to make a negative adjustment to the on-hand balance of an inventory detail record. When an adjustment is processed on these screens, the available and available-to release quantities as well as the on-hand quantity for the inventory detail record are updated. Adjustments recorded on the Add Inventory Adjustments (AIAU) and Deduct Inventory Adjustments (DIAU) screens also generate adjusting entries for the item’s asset balance in the general ledger.

Inventory adjustments are sometimes necessary due to an inaccurate cycle count posting. Using the Add Inventory Adjustments (AIAU) and Deduct Inventory Adjustments (DIAU) screens, the warehouse manager can make adjustments after closing a cycle count to correct an erroneous cycle count posting.