In this case, the Source Location will get swapped; the Source Location will be Stock and the Destination Location will be Inventory adjustment. The quantity will be computed using the formula Theoretical quantity - Real quantity.
Let's assume that the stock of the material has been updated from 400 to 380.
The Inventory Adjustment will be done for the difference of 20 units, Theoretical quantity (400) - Real quantity (380). Look at the following screen for INVENTORY ADJUSTMENT: