Every quantity change needs a reason
Stock movements are the evidence behind the quantity. If the system says there are 48 units, the company should be able to see how that quantity was built: opening balance, receipts, deliveries, returns, transfers, adjustments and counts.
For an Algerian SME, this trail matters because stock feeds margin analysis and, when material, the accounting closing file.
Main movement types
Use clear movement types instead of unlabeled manual corrections:
- supplier receipt;
- customer delivery;
- customer return;
- supplier return;
- transfer between warehouses;
- production consumption or output if relevant;
- count adjustment;
- damage, loss or destruction;
- internal use.
Each movement should carry a date, item, quantity, warehouse, user and business reference. For receipts, the cost link is important because it can affect stock valuation.
Avoid uncontrolled adjustments
Manual adjustments are sometimes necessary, but they should not become the normal way to manage stock. A repeated adjustment means one of the real flows is missing. Before approving a large correction, ask whether the issue comes from receiving, delivery, transfers, returns, units of measure or duplicate item codes.
An adjustment should explain the cause. “Correction” is not enough.
Connection with counts and warehouses
Inventory counts validate the physical quantity. Multi-warehouse management shows where the item is located. Stock movements connect both views.
A transfer must reduce the source warehouse and increase the destination warehouse under the same business event. If the two sides are entered separately, the consolidated quantity may look correct while each warehouse remains wrong.
Monthly control list
Before closing the month, review:
- movements entered after the period end;
- negative stock;
- backdated movements;
- large manual adjustments;
- receipts without supplier documents;
- deliveries without sale reference;
- transfers not received by the destination warehouse;
- movements on inactive items.
Official references
Keep movement history readable
Good stock management is not a final quantity typed into a report. It is a movement history that a warehouse manager, accountant and manager can all read and challenge.