The Source Location will always be Inventory adjustment and the destination will be Stock. The quantity will be computed using formula Real quantity - Theoretical quantity.
Let's assume that the stock of the material has been updated from 320 to 400.
![](/books/30343/OEBPS/00686.jpeg)
The Inventory Adjustment will be done for the difference of 80 units, Real quantity (400) - Theoretical quantity (300). Look at the following screen for INVENTORY ADJUSTMENT.
![](/books/30343/OEBPS/00687.jpeg)
Now, let's move on to the next scenario.