An adjustment should add an explained correction; it should never replace or erase the movement history that led to the current position.

The short answer

This distinction changes the decision you can safely make.

Choose the operation that matches reality. Use a return for real returned goods, a reversal for an eligible erroneous confirmed operation, a count adjustment for an observed difference, and an explained regularisation for another discovered gain or loss.

Worked example

Use exact units and keep each quantity in the right category.

An item shows 25 usable pieces, but one damaged unit is still physically present. Moving 1 from usable to quarantine preserves on hand at 25 and changes usable to 24. Writing −1 as a loss would misrepresent both ownership and condition.

Decision table

Check the facts before choosing an action.

Common mistakes

Avoid shortcuts that create confusion later.

• Editing the current balance
• Using a loss for stock that is still present
• Reversing across later dependent movements
• Omitting the person, reason or source document

How KnownStock handles it

The product keeps the explanation with the number.

KnownStock preserves confirmed activity and records corrections as new authorised entries. Reports connect the position, movement, person, reason and document at the same confirmed reporting point.