Configuring Reason Codes for Inventory Adjustments

[ 1 Where Reason Codes Appear ] [ 2 Common Admin Use Case Examples: (Food Distribution) ] [ 3 Common Questions ] [ 4 Administrator Summary ]

Reason Codes in WMS+ allow administrators to enforce structured, auditable inventory adjustments by requiring users to specify a business-justified reason when adding or removing stock. These codes support traceability, reporting and process compliance, particularly in industries such as food distribution, manufacturing and retail.

Administrators configure Reason Codes in:

Admin Panel → Modules → Inventory Adjustment Configuration

When active, Reason Codes are mandatory in Inventory Adjustment workflows and presented as a dropdown to handheld users during confirmation.

Use naming conventions (e.g., IN - Internal Use, OUT - Damage) to ease user selection and standardize reporting.

Where Reason Codes Appear

Reason Codes are used in two WMS+ workflows:

Inventory Adjustment In – e.g., internal use, repack conversion, overproduction.
Inventory Adjustment Out – e.g., spoilage, customer rejection, recount discrepancy.

If no active codes exist for the selected type, the Reason Code dropdown will not appear, allowing administrators to selectively enforce structured reasons based on process needs.

Common Admin Use Case Examples: (Food Distribution)

Adjustment Type	Reason Code Example	Purpose
Out	`OUT – Spoiled: Out of Temp`	Tracks food spoilage during transit.
In	`IN – Internal Use: Recipe Shortage`	Logs ad-hoc material issues mid-production.
In	`IN – Repack Conversion`	Adds stock after bulk-to-retail repacking.
Out	`OUT – Customer Rejection`	Flags returned deliveries from stores.
Out	`OUT – Inventory Recount: Short`	Records shrinkage after cycle count.

Common Questions

Q: What happens if Reason Codes are disabled?
A: The Reason Code dropdown will not appear. In this case, users can complete adjustments without providing a reason, which reduces traceability.

Q: Are Reason Codes linked to SAP B1 GL accounts?
A: Optionally. You may assign GL accounts per Reason Code, but WMS+ does not enforce the use of SAP financial data.

Q: Can I require different Reason Codes at different warehouses?
A: Not natively. However, you can define broader Reason Code sets and use location-based naming conventions or training to guide selection.

Administrator Summary

To manage Reason Codes effectively:

Use Admin Panel → Modules → Inventory Adjustment Configuration.
Activate codes for each adjustment type where traceability and audit compliance are required.
Apply consistent prefixes, such as 'IN' or 'OUT', to support user selection and reporting.
Review and deactivate obsolete codes regularly.
Educate users on the business context behind each code to ensure correct usage and application.