Use adjustments only for genuine corrections
Transfers, purchases, sales and returns should use their own transaction types. An adjustment is for count differences, damage, loss or an approved correction.
Require a reason and responsible user
A quantity change without a reason is difficult to audit. Capture who made the adjustment, when, at which location and why.
Separate positive and negative adjustments
Receiving an unexplained surplus is different from recording damage or shrinkage. Reporting should make the direction and reason visible.
Recount before large corrections
For material differences, a second count or supervisor review can prevent a counting error from becoming an ERP adjustment.
Analyse repeated differences
Frequent adjustments on the same SKU, location or shift can reveal receiving, picking, security or process problems.
Connect adjustments to stock reports
Management should be able to see both the current quantity and the history of corrections that produced it.
Every event should remain connected to the product, contact or transaction that created it. That is what lets ERP explain a number instead of only displaying it.