What happens when I post physical inventory adjustments?

When you post physical inventory adjustments, a material transaction is created that adjusts the item quantity and debits or credits the adjustment account that you specify for the physical inventory.

If the count of an item matches the snapshot system on-hand quantity, there is no adjustment transaction posted. After adjustments are posted, you can't generate tags, update tag counts, or make any changes to that physical inventory. Physical adjustments aren't posted if any are pending approval; you must approve or reject all of your adjustments before you can post them.