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Business Central Inventory Adjustment: A Comprehensive Guide

Business Central inventory adjustment plays a crucial role in ensuring accurate inventory records and efficient stock management. This comprehensive guide delves into the types, reasons, process, reporting, integration, and best practices of inventory adjustments in Business Central, empowering businesses to maintain optimal inventory levels and minimize discrepancies.

From understanding the different types of adjustments to integrating with other systems, this guide provides valuable insights into the effective management of inventory adjustments, enabling businesses to optimize their operations and make informed decisions.

Inventory Adjustment Types

Business central inventory adjustment

Inventory adjustments in Business Central are used to correct errors, reflect changes in inventory, and maintain accurate inventory records. There are different types of inventory adjustments, each with its own purpose and usage.

The following are the most common types of inventory adjustments in Business Central:

Positive Adjustment

  • Increases the quantity of an item in inventory.
  • Used when items are received but not yet recorded in the system, or when inventory counts reveal a shortage.

Negative Adjustment

  • Decreases the quantity of an item in inventory.
  • Used when items are lost, stolen, damaged, or consumed.

Cost Adjustment

  • Adjusts the cost of an item in inventory.
  • Used when the cost of an item changes due to factors such as price changes, exchange rate fluctuations, or inventory write-downs.

Revaluation Adjustment

  • Adjusts the value of an item in inventory to reflect its current market value.
  • Used when the market value of an item changes significantly.

Inventory Adjustment Process

Inventory adjustments are crucial for maintaining accurate inventory records and ensuring the alignment of physical inventory with system records. In Business Central, the inventory adjustment process involves a series of steps that ensure the integrity and accuracy of inventory data.

The process begins with the identification of discrepancies between physical inventory counts and system records. These discrepancies can arise due to various factors such as shrinkage, damage, or errors in counting or recording. Once the discrepancies are identified, the next step is to create and post adjustment entries to correct the system records and align them with the physical inventory counts.

Creating Adjustment Entries

Creating adjustment entries in Business Central is a straightforward process that involves the following steps:

  1. Navigate to the “Inventory Adjustment” page.
  2. Select the “New” button to create a new adjustment entry.
  3. Enter the relevant details, including the adjustment date, description, and the items that need to be adjusted.
  4. Specify the quantity and unit cost of the items being adjusted.
  5. Select the appropriate adjustment type from the “Adjustment Type” field.
  6. Review the adjustment details and ensure accuracy before posting the entry.

Posting Adjustment Entries, Business central inventory adjustment

Once the adjustment entries are created, they need to be posted to update the inventory records. Posting the adjustment entries involves the following steps:

  1. Select the “Post” button on the “Inventory Adjustment” page.
  2. Review the posting details and ensure accuracy.
  3. Confirm the posting process.

Posting the adjustment entries updates the inventory quantities and values in the system, aligning them with the physical inventory counts. This process ensures the accuracy and integrity of inventory records, which is essential for effective inventory management and financial reporting.

Reporting and Reconciliation: Business Central Inventory Adjustment

Business central inventory adjustment

Reporting and reconciling inventory adjustments are crucial for maintaining accurate inventory records and ensuring the integrity of your financial statements. By regularly reporting and reconciling adjustments, you can identify and correct errors, prevent fraud, and make informed decisions about inventory management.

To effectively monitor inventory levels and identify discrepancies, consider implementing the following practices:

Monitoring Inventory Levels

  • Establish clear inventory policies and procedures to ensure consistent and accurate record-keeping.
  • Use inventory management software or systems to track inventory levels in real-time.
  • Conduct regular physical inventory counts to verify the accuracy of inventory records.

Identifying Discrepancies

  • Compare physical inventory counts to inventory records to identify any discrepancies.
  • Investigate the reasons for discrepancies, such as errors in counting, theft, or damage.
  • Implement controls to prevent or minimize discrepancies, such as using security cameras or implementing access control measures.


In conclusion, Business Central inventory adjustment is a critical aspect of inventory management, offering businesses a robust framework to maintain accurate records, minimize discrepancies, and optimize stock levels. By leveraging the capabilities of Business Central, businesses can streamline their inventory processes, improve decision-making, and ultimately enhance their overall operational efficiency.

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