Sometimes adjustments need to be made to the Inventory. Negative Adjustments may be required for the following reasons:
- Breakage - the inventory has been damaged and cannot be sold.
- Wastage - the inventory is out of date, or needs to be thrown away.
- Write-offs - inventory loss due to other reasons such as theft.
- Consumption of own inventory - the inventory that you use or consume in the course of your business.
Positive Adjustment can be done the same way in Store Inventory.