Sometimes you can find some stock differences in your inventory that cannot be explained by normal sales.
It can be: theft, defective products, wastage, consumption of your own stock, items taken back by the supplier…
Known shrinkage is loss that can be identified, quantified and explained. Ex: breakage, perishables not sold, personal consumption…
To complete a stock adjustment for these products, you must add them to a sale with a 0 selling price.
We recommend to link this shrinkage sale to a specific customer (ex: customer 'known shrinkage'), in order to group them into a single customer account.
In 'Reports/Monthly/Complimentary' you will find a complete list of all products sold with a 0 selling price. This report enables to value your known shrinkage (at your product selling prices or supply prices).
Unknown shrinkage is loss that cannot be specifically identified. Ex: shoplifting, employee theft... The loss occurs when you proceed to an inventory count.
To adjust your inventory for unknown shrinkage, you must complete a stock-take. More information.
Negative discrepancies will be recorded in a sale (with selling prices at 0). This shrinkage sale can be assigned to a specific customer (like 'unknown shrinkage') to better track unknown loss.
In the notes of the shrinkage sale, you will find a valuation of the loss at the supply price of products.
A stock return is when you need to return stock to your supplier because the product is faulty or over supplied for example.
Products from a stock return must be removed from your inventory but should not impact your margin because it is not a loss.
To adjust your inventory, we will modify the initial stock order.
In each product form, you will find a 'Stock orders' section in which all stock orders containing the product are listed.
Reach the stock order concerned by the stock return and change the quantity received in the limit of the stock available.
These adjustments can change the supply prices used to calculate your margin with the FIFO (first in first out) method.
After a period of 24H, your margin will be automatically updated to take into account stock returns.
If the stock order date and the return date are on different fiscal calendars, the stock return may change your stock valuation.
You should keep a documentary evidence of the stock return to justify the discrepancy.