Warehouse Inventory Adjustment Advice

Warehouse Inventory Adjustment Advice (947) is sent by a warehouse or distribution center to notify trading partners of inventory adjustments made to stock held on their behalf. The sender is typically a third-party logistics provider, warehouse operator, or distribution facility; the receiver is the inventory owner or their authorized representative. This transaction is often sent in response to physical inventory counts, cycle counts, damage reports, or other operational events that require inventory quantity or value corrections. Key segments include the W15 (Warehouse Adjustment Identification) segment, which establishes the adjustment reference and type; the W19 (Warehouse Adjustment Item Detail) segment, which specifies the individual items being adjusted along with quantities and reasons; and the N1 (Name) segment loop, which identifies the parties involved—such as the warehouse operator, inventory owner, and other relevant organizations.

Consider a scenario where Midwest Distribution Center, which stores inventory for HomeGoods Inc., discovers during a cycle count that 150 units of product SKU 447829 (commercial mop handles) are damaged and unusable. Midwest Distribution sends a 947 transaction to HomeGoods using the W15 segment to identify this as a damage adjustment, references the SKU and quantity in the W19 segment, and includes a note explaining the damage was caused by water exposure in the storage area. The N1 loop identifies both Midwest Distribution Center as the warehouse and HomeGoods Inc. as the inventory owner. HomeGoods receives the 947, verifies the adjustment against their records, and updates their perpetual inventory system accordingly—reducing recorded stock of mop handles by 150 units and potentially initiating a damage claim with their insurance carrier.