Stock Adjustments enable you to increase or decrease the quantity of items you have "In Stock" (read more about the Inventory list). Typical situations where you could create a Stock Adjustment include:

- Inserting initial stock - if you are just starting with Katana, but your business is already operating with some existing stock, you need to enter your current stock levels into Katana. Creating a Stock Adjustment with relevant items, quantities, and values is the solution.

- Corrections to stock levels based on stock takings - if there are more or less items actually in your stock than Katana indicates, you can increase or decrease the quantities with a Stock Adjustment.

- Changing the stock level for consumable materials not included in Product Recipes - there might be some low-value materials that you have in stock and use in manufacturing your products, but do not include in Product Recipes (e.g. thread, nails). In this case, Manufacturing Orders do not trigger inventory movements for these materials. If you wish to track the stock level for those materials, you can periodically change the stock level with Stock Adjustments.

- Accounting for waste in the manufacturing process - the actual amount of materials and subassemblies used in manufacturing a product might not always match the quantities in the Product Recipe (the percentage of waste might vary). Create a Stock Adjustment to account for the differences.

- Any other positive or negative event, which affects the Stock level - theft, fire, lost items, gifts, etc.

Read more about Creating a Stock Adjustment.