A stock adjustment increases or decreases the stock quantity of a product. It does not represent the final count.

E.g.

Qty of Product A lying in default location: 10 pcs

Sales order that hasn’t been delivered: 4 pcs

Purchase order that hasn’t been received: 7 pcs

Stocks:

Physical: 10 pcs

Available qty(Excl PO): 6 pcs

Available qty(Incl PO): 13 pcs

Did a stock take for Product A in default location, counted a total of 20 pcs and close stock take.

Stocks:

Physical: 20 pcs

Available qty(Excl PO): 16 pcs

Available qty(Incl PO): 23 pcs

Found 5 additional pcs of Product A lying elsewhere and did a positive qty adjustment of 5 pcs

Stocks:

Physical: 25 pcs

Available qty(Excl PO): 21 pcs

Available qty(Incl PO): 28 pcs