What is the difference between adjustment and destruction

What is…

What is the difference between the inventory transaction types Adjustment and Destruction?

While both transaction types can result in the reduction of units from your inventory, the Destruction inventory transaction type is a specific classification reserved for products that are physically destroyed. The Destruction inventory transaction type is often used for tracking inventory obsolescence, analyzing write-offs, and in select regulated industries such as Cannabis.

Characteristics of inventory transaction type Destruction include:

• Can only be negative
• Used only to represent physical destruction of inventory
• Reflected in the destructions section of certain regulatory reports

Characteristics of inventory transaction type Adjustment include:

• Can be positive or negative
• Used as general unspecified movement, sometimes classified by company specific reason codes
• Reflected in the adjustments section of certain regulatory reports

Frequently asked questions

1. What happens if I record a destruction as a negative adjustment?
   Ultimately, if you record the destruction of inventory as a negative adjustment, the number of units in your inventory will still be correct. However, if you are in a regulated industry this may be considered non-compliant behaviour. If you use GlobalTill's automated compliance reporting, destroyed units entered simply as an adjustment will be classified as an adjustment in select reports, creating an inaccurate representation of your actual transaction history. If you work in a regulated industry and use GlobalTill automated reports, it is critical to ensure inventory transactions are entered as the correct transaction type.
2. If I enter a destruction as transaction type Adjustment, but include "Destroyed" or "Destruction" in my notes, will GlobalTill record the transaction type as a Destruction?
   No. If you process an Adjustment, your transaction will be recorded as an Adjustment regardless of what is written in your notes. Ensure you are accurately recording destructions by using the Destroy button or by selecting the Inventory Destruction box when processing destructions from the Adjust button.

More Information

For more information, see the articles How to destroy inventory and How to adjust inventory.