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Warehouse Adjustment
Definition
An inventory correction made in the warehouse system to reconcile discrepancies between physical counts and system records. Adjustments may result from shrink, mis-counts, damages, or system errors.
How It's Calculated
Adjustment amount = (Physical count − System count).
Example
A warehouse performs a cycle count and makes a −42 unit adjustment after discovering a pallet of detergent was incorrectly double-counted.
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