# What is stock adjustment?

Stock Adjustment helps you decrease the goods you hold in stock, you can enter manual stock adjustments.

It’s generally used to write off damaged stock or to adjust quantities after a stock take.

To create a stock adjustment

1. First, go to “Add Stock Adjustment”
2. Select the Business Location & date
3. Select Adjustment Type (Normal Or Abnormal). Normal Or Abnormal is generally used to classify adjustment.\
   Generally, Normal Adjustment means Adjustment for normal reasons like leakage, etc.\
   Abnormal meaning: Adjustment for reasons like Fire, Accident, etc.
4. Add the products & quantity you want to decrease the product.
5. **The total amount recovered:** Sometimes you can recover some amount from the damaged stocks, like from insurance claims, selling of scraps, etc. If there is no amount recovered then you can make it 0. The recovered amount is taken into consideration when making a profit & loss report, it is added to the total profit/loss.

The quantities entered for each product will be deducted from the available quantities.

You can view the details of stock adjustment in “Stock Adjustment Report”.

Also, Stock Adjustment is used in the Profit & Loss Report (P & L Report).

{% hint style="info" %}
**Calculation:**

“Total Stock Adjustment” amount is deducted from (P & L Report) and “Total Stock Recovered” amount is added to the Profit & Loss Report.
{% endhint %}


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