When inventory expires, is damaged, or can no longer be used, record the loss as a Shrink transaction instead of manually adjusting the quantity. This keeps your inventory history accurate and documents why the stock was removed.
Step 1: From the Inventory Page, locate the inventory item and select the pencil icon to update quantity.
Step 2: Select the inventory lot you want to update, then click Next: Adjust Quantity.
Step 3: Enter the new quantity after the unusable inventory has been removed.
Step 4: Under Reason for Change, select Shrink.
Step 5: Add a note describing why the inventory was removed, such as: Expired 8/31/26 or Damaged packaging.
Step 6: Click Update Quantity to save the change.
Best Practice: Record expired or damaged inventory as Shrink rather than using Manual Adjustment. This provides a clear audit trail and makes inventory reporting more accurate.