This manual will guide you through the steps of creating an inventory adjustment in NetSuite.

Requirements

1. NetSuite account
2. Appropriate permissions to create inventory adjustments
   

General SOPs for Creating Inventory Adjustments

• All adjustments must be made against the appropriate Account & assigned an accurate Inventory adjustment Category.
  
• Inventory adjustments for a single SKU that exceeds $200 should be approved by the Inventory Control Supervisor.
• When adjusting a single SKU with inventory at multiple bins, use a separate line for each bin location.  [this affects reporting]
• In the Memo field, always include as much information as possible explaining the cause for the adjustment, or why the adjustment was made.  The will be necessary information for monthly reporting, future investigations/research, etc.
• Items that are either being returned to vendor, or we are receiving a vendor credit for, should be processed out of inventory using the Vendor Return Authorization function, NOT an inventory adjustment.  The Receiving Specialist is responsible for creating these transactions.
  

ADJUSTMENT ACCOUNTS

• 406 Cost of Goods Sold : Cost of Goods Sold-Inv. Adj.
  The majority of adjustments are made against this account, including cycle counts, shortages/overages, all clerical  & transactional errors, etc.
• 577 Scrapped Inventory
  Broken, damaged, expired, obsolete items which are disposed of & we will NOT be receiving vendor credit or replacements.  
• 559 Marketing Expense
  Any items requested by Marketing Dept [Ben Dickert]
• 570 Product Development
  Any items requested by Product Managers [Joel Hutcheson, Matthew Brown, Mitch Palles] 
• 590 Trade Shows
  All shortages/overages related to a trade show’s inventory
  
  

INVENTORY ADJUSTMENT CATEGORIES

• Clerical Error - fixing negative bin qtys, inv detail errors, etc
  
• Clerical Error - fixing previous adjustment
• EComm - 577 Scrapped [damaged]
• EComm - Amazon Cycle Count
• EComm - Returns / Restocks
• EComm - Ebay item restock
• Grab Bags
• Marketing / Product Development
• Misc - See Line Memo
• Picking Error
• Purchasing / Billing
• QC
• RCV - 406 Vendor / RCV Error
• RCV - 577 Rcv & Scrap per Purchasing
• RCV - 577 Scrapped [damaged, no credit/replacements]
• Receiving Error
• Sales / Customer Service Dept
• Samples
• Scrapped - Broken / Damaged [577 Acct]
• Scrapped - Discontinued / Obsolete [577 Acct]
• Scrapped - Expired Items [577 Acct]
• Scrapped - Leaky Liquids [577 Acct]
• Shipping Error
• Short / Over / Cycle Counts
• SKU Conversion / Restock
• TOI - 577 Scrapped  [Damaged/Not Returned]
• TOI - Returns 
• TOI - See Line Memo
• Trade Show
• Vendor Error
• WP - 406 Damages to be replaced/credited
• WP - 577 Scrapped [damaged/broken]
  

See “Inventory Adjustment Categories & Accounts” for detailed breakdown of categories/accounts by Department.

Creating An Inventory Adjustment

1. In NetSuite, navigate to Transactions > Inventory > click on Adjust Inventory
2. In the Primary Information section of the form, select the appropriate options for:
   
1. ADJUSTMENT ACCOUNT
2. INV ADJUST CATEGORY
   
3. MEMO
   
3. Under the Adjustments tab, enter a line adjustment:
   

1. ITEM = enter SKU
2. LOCATION = AFG  [or other location if applicable]
3. ADJ QTY BY = enter number [if negative, use “-” before number]
   
   
4. Click the Inventory Detail button 
5. In the Inventory Detail pop up window:

1. If item is a Lot Controlled item, enter Lot info / Exp Date
2. Select the BIN
3. Enter QUANTITY to adjust  [must match the QUANTITY in upper right corner of window]
4. Click Add button
5. Click OK button, window will close

6. Enter a line Memo with any details.
7. Click line item Add button.
8. Repeat 3A-3F, if adjusting more than one SKUs or Bins.
9. Once completed, click Save button.