I am working for a company that has not previously kept track of Item Quantities on-hand. Currently, all items are in (-) Negative Qty (and represent a few years worth of qty sold).

I would like to 'adjust' the Inventory Qty-on-Hand in Adagio to match the physical inventory.

There are approximately 500 items to adjust. I am not able to do a one-time adjustment of ALL items, but rather, will have to do Adjustments of 25-50 Items at any one time. Thus, the process will take place over a period of time.

My understanding is that I could 'adjust' this in at least 2 ways?:
- 'Edit Adjustment', or
- 'Edit Physical Inventory'.

Is one method preferable under the circumstances?
Should any 'special' GL accounts (sub-accounts) be setup for the purpose of bringing years of negative qty in line with current stock?

Background Company:
Previous to new management team, the company has only utilized a few of the Adagio modules they purchased
(Utilized: OE 8.0A, AR 8.0A, AP, IC 6.8B (partial use)) (Underutilized: GL, GV, Sales Analysis).

My Background:
Generalist. Knowledge of basic accounting principles.

Appreciate the opinions,

Keith