Inventory Adjustments are manual corrections to stock counts — cycle counts, damage write-offs, shrink, gift-outs, and the occasional “how did we end up with three of those?” moment. Every adjustment posts to the GL so your balance sheet stays in sync with what’s on the shelf.

How to get there #

Menu: Inventory → Adjustments
Direct URL pattern: https://yourdomain.com/?bizRt=phreebooks/main/manager&jID=16&mgr=1

When to adjust #

• Physical count variance — counted 47, system said 50; adjust down 3.
• Damage — a helmet falls off the rack, cracks; write it off to a damage expense account.
• Shrink — theft or unexplained loss; write off to a shrinkage account.
• Gift / sponsorship — donating a frame to a charity ride; write off to a marketing or donation account.
• Found inventory — counted extra that isn’t on a receive; adjust up and post to a miscellaneous inventory-gain account.

Creating an adjustment #

1. Click New.
2. Set the Post Date (defaults to today; use the count date for year-end counts).
3. Enter a Reference — free-text, e.g., “2026 Q2 cycle count, aisle 3” or “Damaged, dropped during build 4/21”.
4. Pick an Adjustment Reason from the dropdown:
   • Count Correction, Damage, Shrink, Gift/Donation, Return to Manufacturer, Other.
   • Each reason maps to a specific GL expense account in Admin → Settings → GL Defaults.
5. Add lines. For each line:
   • Pick the SKU.
   • Enter the Qty Change — negative to reduce stock, positive to add.
   • Bizuno pre-fills the cost from the cost layer being relieved (for reductions) or from Standard Cost (for increases). You can override if needed.
   • Optionally override the GL account on a line-by-line basis.
6. Click Post. Bizuno:
   • updates on-hand quantity,
   • relieves cost layers for reductions or creates a new layer for increases,
   • and posts the journal entry: DR expense account, CR inventory (or reverse for increases).

Important: Adjustments are permanent and auditable. If you made a mistake, post a reversing adjustment — don’t try to edit the original. Your auditor will thank you.

Cycle counts #

A cycle count is a planned, recurring physical count of a subset of inventory (rather than a full-shop count once a year). To run one in Bizuno:

1. Print a count sheet from Inventory Reports → Stock Count Sheet filtered to the bin or category you’re counting.
2. Count. Write the actual on the sheet.
3. Back at the computer, create an Adjustment with reason Count Correction.
4. Enter one line per SKU with a variance, using the difference between counted and system.
5. Post.

Viewing history #

The Adjustments grid shows every adjustment ever posted, with filters for Period, Reason, and SKU. Click a row to open it read-only — you’ll see who posted it, when, and what changed.

Tips for Ridgeline Cycles #

• Count your top-20 highest-value SKUs (complete bikes, premium frames) monthly, not annually. The dollar variance on a single bike can exceed a whole shelf of small parts.
• Create separate reason codes for Damage vs. Warranty Write-Off. The P&L reports them separately and the accountant’s eyebrows appreciate it.
• When you donate a frame to a charity ride, post the adjustment with the full list price in the Reference field — useful when the donation receipt is questioned later.
• A lot of small negative adjustments in one category usually means a process problem (unrecorded shipments, wrong-SKU returns). Investigate rather than just adjusting again.

Where to go next #

• Stock Levels — re-check after posting a batch of count corrections.
• Inventory Reports — Inventory Variance, Stock Count Sheet.
• GL Reports — verify adjustments posted to the right expense account.