Inventory operations control how items move in, out, and between locations in Pavilion. Each action creates an inventory adjustment, which helps keep stock quantities, item history, and audit records accurate.
Use this guide to understand what each operation does and which process to use.
Inventory operation overview
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 rules
Do not delete documents to fix inventory.
If an item was purchased, received, sold, returned, or memoed incorrectly, use the correct reversal or return process instead. This keeps item history accurate.Posting matters.
Inventory quantities usually do not update until the related document is posted, submitted, received, or completed.Memo inventory is different from owned inventory.
Items received on memo are in your possession, but they are not owned until they are purchased. Memo items must eventually be returned to the vendor or converted to a purchase.Transfers move inventory between locations.
When an item is shipped, it leaves the original location and may show as in transit. When it is received, it is added to the destination location.Every operation creates an adjustment.
Adjustments create the traceable history behind inventory changes, including stock movement, quantity changes, and financial impact.
When to use each process
Use a vendor purchase when you are buying new inventory from a vendor.
Use a memo purchase when a vendor sends items on memo and you have not purchased them yet.
Use a trade-in when a customer gives you an item as credit toward a sale.
Use a return to vendor when you need to send purchased inventory back to the vendor.
Use a memo return when you need to send memo inventory back to the vendor.
Use a memo out when you send an item out on memo to another party while still owning it.
Use a sale return when a customer returns an item that was previously sold.
Use a manual adjustment only when the inventory change does not come from a standard purchase, sale, memo, or transfer workflow.
Use a transfer when moving inventory from one store or location to another.