Inventory Operations & Adjustment Flow (Training Guide)
Adjustment Operation | System Flow | Inventory Result | Explanation / Training Note |
Vendor Purchase | Purchase Order → Post → Purchase → Purchase Receipt → Post | ➕ New inventory item added | Standard purchase from the vendor. Item is officially added to stock after posting the receipt. |
Memo Purchase(Memo In) | Purchase Memo → Post → Purchase → Purchase Receipt → Post | ➕ New inventory item (Memo) | The item is received on memo (not owned yet). Must be either returned or converted later. |
Trade-In | POS Sale → Trade-In applied | ➕ New inventory item | The customer's item is taken in and added to inventory. Value is used as credit toward the sale. |
Return to Vendor | Purchase Order → Purchase Receipt → Return | ➖ Inventory removed | Used to return purchased items. Do not delete the receipt — always use Return to keep history correct. |
Memo Return (Memo In Return) | Purchase Memo → Purchase Receipt → Return | ➖ Memo inventory removed | Returns memo item to vendor. Important: Never delete a memo — always process Return. |
Memo Out (Send on Memo) | Memo → Submit | ➖ Inventory temporarily removed | The item is sent out on a memo (e.g., to a customer or partner). Still owned by you. |
Memo Out Return | Memo → Submit → Return | ➕ Inventory added back | Memo item is returned back to your stock. |
Sale | POS Sale | ➖ Inventory removed | The item is sold and leaves inventory. |
Ordered (On Order) | Purchase Order / Purchase Memo → Post | ⏳ No stock change yet | The item is ordered but not yet in inventory until receipt is posted. |
Sale Return | POS Sale → Return | ➕ Inventory added back | Customer returns the sold item back into inventory. |
Lost | Manual Adjustment → Lost | ➖ Inventory removed | Used when an item cannot be found. Requires proper tracking. |
Found | Manual Adjustment → Found | ➕ Inventory added | Used when a previously lost item is recovered. |
Scrap | Manual Adjustment → Scrap | ➖ Inventory removed | Item is unusable (damaged, melted, etc.). Permanently removed. |
Transfer Out | Transfer → Ship | ➖ Inventory removed from location | The item is sent to another location (enters transit). |
Transfer In | Transfer → Receive | ➕ Inventory added to location | The item is received from another location. |
Transit Out | Transfer → Ship (in transit state) | 🚚 In transit | The item is between locations, not available for sale. |
Transit In | Transfer → Receive | ➕ Inventory added | Completes transfer from transit into stock. |
Key Training Rules (Very Important)
Never delete documents (Memo, Receipt, Sale)
→ Always use Return to reverse inventory correctlyMemo ≠ Owned Inventory
→ Must be either:Returned, or
Converted to purchase
Posting matters
→ Inventory changes only happen after Post / Submit / ReceiveEvery action creates a traceable adjustment
→ This ensures correct stock, accounting, and audit history