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Administrator Guide
Last Updated: 2023-06-23
Adjust Inventory Levels

Adjust Inventory Levels

  • Create adjustment reasons.
  • Create inventory sites and stocking locations.
  • Configure the
    Inventory Adjustment Event
     business process and security policy in the Inventory functional area.
When you discover quantity discrepancies in an inventory stocking location, you can adjust inventory quantities to maintain accurate inventory levels. Enter reasons for making adjustments to item levels for processing, reporting and accounting purposes.
  1. Access the
    Adjust Inventory
     task.
  2. As you complete this task, consider:
    Option Description
    Inventory Site
    The site that stocks inventory items requiring adjustment.
    Quantity On Hand
    Quantity Workday has as the actual quantity on hand.
    Adjustable On Hand
    Excludes quantities picked from inventory, but not yet shipped. Because these quantities are technically no longer on the shelf, Workday doesn't enable you to adjust on hand quantity.
    Quantity to Adjust
    Specify whether you want to increase or decrease the quantity. If 5 are surplus, enter 5.
    If you enter
    Quantity to Adjust
    , the
    New Quantity On Hand
     automatically updates.
    When decreasing an inventory balance, you can't adjust the quantity on hand below
    Quantity on Hand
    or below the
    Adjustable On Hand
    . Workday doesn't support negative inventory balances.
    New Quantity On Hand
    Enter to override
    Quantity On Hand
    .
    If you enter
    New Quantity On Hand
    , the
    Quantity to Adjust
     automatically updates.
    Serial Number
    If you’ve selected
    Full Serial
     as
    Serial Control Type
     on the
    Create Purchase Item
     task, select a serial number.
    Adjustment Reason
    Select the adjustment reason that categorizes the adjustment that is occurring.
    Packaging String
    View the different units of measure and their conversion factors for this item.
When you submit adjustments, Workday initiates the
Inventory Adjustment Event
 business process.
For reporting purposes, Workday provides values for adjustments created, based on spend categories the items belong to.
When you increase inventory levels of an item with an accounting treatment of Inventory: Workday creates an accounting entry that:
  • Debits the account used by the
    Spend
     posting rule.
  • Credits the account used by the
    Inventory Adjustment
     posting rule.
When you decrease inventory levels of an item with an accounting treatment of Inventory, Workday creates an accounting entry that:
  • Debits the account used by the
    Inventory Adjustment
     posting rule.
  • Credits the account used by the
    Spend
     posting rule.
You can use the:
  • Find Inventory Transaction
     report to view your adjustment transactions.
  • Find Inventory Balance
     report to view your inventory balance.
  • Adjustment Transaction Value
     report to view the value and frequency of adjustments based on adjustment reason.