SyteLine Inventory Adjustment Workflows and Configuration
Inventory adjustments in SyteLine correct discrepancies between physical and system inventory quantities. Whether caused by damage, theft, miscounts, or receiving errors, adjustments must be controlled, documented, and financially posted. This guide covers the configuration of adjustment reason codes, approval workflows, and GL posting rules that ensure adjustments are properly authorized and recorded.
Reason Codes and Adjustment Types
Every inventory adjustment in SyteLine requires a reason code that categorizes the adjustment for reporting and GL posting. Reason codes are defined on the Inventory Adjustment Reason Codes form and stored in the adj_reason table. Each reason code maps to a specific GL account through the posting rules, ensuring that damage adjustments, scrap, and count corrections post to appropriate accounts. The SLMiscIssues IDO processes miscellaneous issue and receipt adjustments.
- Create reason codes for common adjustment types: damage, scrap, count correction, rework, and sample
- Map each reason code to a specific GL expense or variance account in the Inventory Posting Rules
- Distinguish between quantity adjustments (add/remove stock) and cost adjustments (change unit cost)
- Configure mandatory reason codes in Inventory Parameters to prevent unclassified adjustments
- Use the Miscellaneous Issue and Miscellaneous Receipt forms for positive and negative quantity changes
Approval Workflows and Controls
Uncontrolled inventory adjustments expose organizations to financial risk and audit findings. SyteLine supports adjustment approval workflows where transactions exceeding defined thresholds require supervisor authorization before posting. The approval configuration in Inventory Parameters sets dollar and quantity thresholds. Pending adjustments queue on the Adjustment Approval form for review before inventory records update.
- Set adjustment approval thresholds by dollar value and quantity in Inventory Parameters
- Adjustments exceeding thresholds enter pending status and appear on the Adjustment Approval queue
- Supervisors review pending adjustments with reason codes, quantities, and financial impact before approval
- Rejected adjustments return to the originator with comments for correction or additional justification
- Enable segregation of duties by restricting adjustment entry and approval to different security roles
GL Posting and Audit Trail
Posted adjustments create transactions in the matltran table with adjustment-specific transaction types. The GL journal entry debits or credits the inventory account and posts the offset to the reason-code-linked expense account. The adjustment transaction includes the operator, timestamp, reason code, and quantities for complete audit documentation. The Inventory Adjustment Report provides a summary of all adjustments by period, reason, and dollar impact.
- Each posted adjustment creates a matltran record with trans_type = A (adjustment) and the reason code
- GL posting debits/credits inventory at standard cost and offsets to the mapped adjustment expense account
- The Inventory Adjustment Report summarizes adjustments by warehouse, reason code, and financial period
- Audit trail includes operator ID, timestamp, before/after quantities, and reason code on every transaction
- Month-end adjustment review ensures all material variances are investigated before period close
Strengthen your SyteLine inventory controls—contact us to configure proper adjustment workflows.
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