What is inventory adjustment posting in SAP MM-IM - Inventory Management?

SAP Term: inventory adjustment posting

• Component: MM-IM

• Component Name: Inventory Management

• Description: Correction of the book inventory balance by the amount of the variance between book inventory and the actual quantity of stock counted during a physical inventory.

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• Key Concepts: 
  Inventory adjustment posting is a process in SAP's Inventory Management (MM-IM) component that allows users to adjust the quantity of an item in stock. This process is used when the actual quantity of an item differs from the quantity that is recorded in the system. It can be used to correct errors, adjust for physical inventory counts, or to adjust for goods receipts and goods issues. 
  
  How to use it: 
  Inventory adjustment posting can be done through the MIGO transaction. The user will need to enter the material number, plant, and storage location of the item they wish to adjust. They will then enter the quantity they wish to adjust and select either an increase or decrease in stock. The user will then need to enter a reason code for the adjustment and save the document. 
  
  Tips & Tricks: 
  When adjusting inventory, it is important to ensure that all documents are saved correctly and that all adjustments are properly documented. This will help ensure that all inventory adjustments are tracked and accounted for correctly. 
  
  Related Information: 
  Inventory adjustment posting is closely related to other processes in SAP's Inventory Management component such as goods receipt postings and goods issue postings. It is also related to physical inventory processes such as cycle counting and physical inventory counts.