- Inventory Adjustments

Click on the "Products" tab
Click on the "Product Name" link
Click on the "Stock Locations" tab
Click on the "Adjust" icon for the location where you will adjust inventory.

In the window that comes up
Adjustment Type - defaults to Unit Based. Value Based is available if Average Costing is turned on (requires Enterprise and higher editions).
Enter the "Quantity" being adjusted
Select the "Adjustment Reason" for the inventory adjustment
Depending on the Adjustment Reason the inventory will be adjusted up or down
Please see "Settings > Adjustments" (under "Configure Accounting" group) for the list of reasons and the mapping to Income/Expense Accounts. Adjustment reasons mapped to Income accounts will adjust inventory up, adjustment reasons mapped to Expense accounts will adjust inventory down.
Provide additional "Description" if necessary
Using Inventory Adjustment to change inventory ensures that the changes are captured as income or expense line items in accounting.
Click the "Save" button.

The adjustment will appear in the Stock Adjustments tab.