How-ToFinance & Operations

How to Use Item Journals in Business Central

Post inventory adjustments, movements, and reclassifications using item journals in Business Central.

6 min read

Item journals are how you post inventory changes that do not go through a purchase or sales document. This includes adjusting quantities, correcting costs, and moving items between locations.


  1. Search for Item Journals using Alt + Q.
  2. Select the journal batch you want to use. If no batch exists, create one by selecting the Batch Name field and choosing New.

Each journal template serves a different purpose. The template is set when you open the journal:

TemplatePurpose
Item JournalGeneral adjustments, positive and negative quantity changes
Physical InventoryCount-based adjustments after a physical count
RevaluationAdjust the cost of existing inventory entries
ReclassificationChange lot numbers, serial numbers, location, or bin

Enter a Journal Line

  1. In the item journal, click into the first empty line.
  2. Set the Entry Type:
    • Positive Adjmt., increases inventory (e.g., found stock, opening balance entry)
    • Negative Adjmt., decreases inventory (e.g., damaged goods, write-off)
    • Transfer, moves stock from one location to another in a single line (basic transfer without a transfer order)
  3. Enter the Item No..
  4. Set the Location Code, where the stock is being adjusted.
  5. Enter the Quantity.
  6. For a Positive Adjmt., set the Unit Cost to record the cost value of the incoming stock.
  7. Optionally set the Posting Date if it differs from today.

When to Use Each Entry Type

Positive Adjmt. is appropriate when you need to add inventory without a purchase, for example, entering opening balances when going live, or recording recovered stock that was previously written off.

Negative Adjmt. is used when inventory needs to come down without a sales document, for example, writing off damaged or expired goods, or correcting a previous over-receipt.

Transfer (in the item journal) works for simple location-to-location moves where you do not need a transfer order with a separate in-transit step. For more complex warehouse transfers, use a transfer order instead.


Post the Journal

  1. Review all lines before posting.
  2. Select Post from the action bar.
  3. Confirm by selecting Yes when prompted.

BC creates item ledger entries and value entries for each line. If a line has an error (for example, a missing location or an item with mandatory tracking but no tracking numbers assigned), BC stops and describes the problem.


Use the Reclassification Journal

The Reclassification Journal is a separate template used when you need to change attributes on existing inventory without changing quantities.

Common uses:

  • Reassigning a lot number
  • Correcting a serial number entered incorrectly
  • Moving stock from one bin to another within the same location
  1. Search for Item Reclass. Journals using Alt + Q.
  2. Enter the item, location, and quantity.
  3. Fill in the New Location Code, New Lot No., or New Bin Code as needed.
  4. Post the journal.

Example: You received 50 units under lot number LOT-001 but the correct lot number is LOT-2024-001. Open the reclassification journal, enter the item and quantity, set Lot No. to LOT-001 and New Lot No. to LOT-2024-001, and post. The existing inventory entries are updated to the correct lot.


For quantity-based corrections tied to a physical count, see How to Perform Inventory Adjustments in Business Central.