Inventory adjustments and physical counts
Correct quantities after a physical count, shrinkage, damage, or write-off, with a required reason and adjustment account so every change is auditable.
- Plans
- Core and above
- Availability
- Available
- For
- Owners, Bookkeepers
- In KontoCore
Inventory → Adjustments
In plain English
When the shelf and the books disagree, an adjustment brings the books in line and records why.
What this does
An adjustment changes quantity (and therefore value) for one or more items on a date, posting the value difference to an adjustment or shrinkage expense account.
Before you start
- Finish recording all purchases and sales up to the count date.
- Create an Inventory shrinkage/adjustment expense account if you don’t have one.
How to
Record a count
- 1Inventory → Adjustments → New adjustment.
- 2Choose date, reason (count, damage, theft, write-off), and adjustment account.
- 3Enter the counted quantity or the change per item (and warehouse/lot on Advanced).
- 4Review the value impact shown and save.
Statuses and lifecycle
| Status | Meaning |
|---|---|
| Draft | Saved but not posted; no quantity change. |
| Posted | Quantity and value changed; locked. |
| Reversed | A linked reversal undid it. |
Corrections, voids, and reversals
- Posted records are never edited in place. Void or reverse them; KontoCore records a linked reversing entry with the user, time, and reason.
- Adjustments in a closed period require the period to be reopened by an authorized user.
Provider and availability notes
- Inventory work happens in the browser workspace. Dedicated mobile warehouse apps and handheld barcode-scanner integrations are not offered.
Permissions
- Owners, administrators, and users with bookkeeping or inventory permission can create and post. View-only users can read but not change records.
- Organizations on Advanced can require approval for adjustments above a threshold.
What happens in your books
A count finds 3 fewer units at $8.00 average cost:
| Account | Debit | Credit |
|---|---|---|
| Inventory Shrinkage (expense) | 24.00 | |
| Inventory Asset | 24.00 |
Common mistakes
- Counting before all receipts are entered, then adjusting real stock away.
- Using adjustments to record purchases or returns — use bills and vendor credits.
Troubleshooting
Value impact looks wrong
Adjustments use current average cost on the date; check recent bills for unusual unit costs.
Terms used:Inventory
Related articles
InventoryTrack product quantities and cost, adjust stock, and understand advanced warehouses, lots, serials, and assemblies.Stock on hand and inventory valuationRead quantity on hand, committed and available stock, average cost, and inventory value, and reconcile the valuation report to the Inventory Asset account.Inventory items: set up tracked productsCreate quantity-tracked inventory items with income, expense, and asset accounts, a costing basis, reorder points, and optional lot or serial tracking.Fiscal periods, close, and reopenSet your fiscal year, close months and years so posted history can’t change, and reopen a period with a recorded reason when a correction is necessary.
Was this helpful?
Last reviewed October 6, 2026