Stock counts and adjustments

Count what is on the shelf, post the difference, and see it as a cost rather than a silent change.

Inventory → Counts and Adjustments.

A count freezes expected quantities, gives you a count sheet by location, and takes your counted figures back. Only the differences post — as an adjustment with a reason.

Cycle counting counts a slice continuously (by category, by location, or by value ranking) instead of shutting down once a year.

Adjustments post outside a count for a known event: shrinkage, damage, obsolescence, or a revaluation. Each needs a reason code and posts to the expense account for that reason, so shrinkage does not quietly hide inside cost of goods sold.

The valuation always ties. The inventory asset account and the stock valuation report are the same number by construction; if they ever differ, the Inventory Valuation Discrepancy report says which item and when.