diff --git a/server/src/api/controllers/Inventory/InventoryAdjustments.ts b/server/src/api/controllers/Inventory/InventoryAdjustments.ts
new file mode 100644
index 000000000..1d951a3e9
--- /dev/null
+++ b/server/src/api/controllers/Inventory/InventoryAdjustments.ts
@@ -0,0 +1,172 @@
+import { Inject, Service } from 'typedi';
+import { Router, Request, Response, NextFunction } from 'express';
+import { check, param } from 'express-validator';
+import { ServiceError } from 'exceptions';
+import BaseController from "../BaseController";
+import InventoryAdjustmentService from "services/Inventory/InventoryAdjustmentService";
+
+@Service()
+export default class InventoryAdjustmentsController extends BaseController {
+  @Inject()
+  inventoryAdjustmentService: InventoryAdjustmentService;
+
+  /**
+   * Router constructor.
+   */
+  router() {
+    const router = Router();
+
+    router.delete(
+      '/:id',
+      [
+        param('id').exists().isNumeric().toInt(),
+      ],
+      this.validationResult,
+      this.asyncMiddleware(this.deleteInventoryAdjustment.bind(this)),
+      this.handleServiceErrors,
+    );
+    router.post(
+      '/quick',
+      this.validatateQuickAdjustment,
+      this.validationResult,
+      this.asyncMiddleware(this.createQuickInventoryAdjustment.bind(this)),
+      this.handleServiceErrors
+    );
+    router.get(
+      '/',
+      this.asyncMiddleware(this.getInventoryAdjustments.bind(this)),
+      this.handleServiceErrors
+    );
+    return router;
+  }
+
+  /**
+   * Quick inventory adjustment validation schema.
+   */
+  get validatateQuickAdjustment() {
+    return [
+      check('date').exists().isISO8601(),
+      check('type').exists().isIn(['increment', 'decrement', 'value_adjustment']),
+      check('reference_no').exists(),
+      check('adjustment_account_id').exists().isInt().toInt(),
+      check('reason').exists().isString().exists(),
+      check('description').optional().isString(),
+      check('item_id').exists().isInt().toInt(),
+      check('new_quantity').optional().isInt(),
+      check('new_value').optional().toFloat(),
+    ];
+  }
+
+  /**
+   * Creates a quick inventory adjustment.
+   * @param {Request} req
+   * @param {Response} res
+   * @param {NextFunction} next
+   */
+  async createQuickInventoryAdjustment(req: Request, res: Response, next: NextFunction) {
+    const { tenantId } = req;
+    const quickInventoryAdjustment = this.matchedBodyData(req);
+
+    try {
+      await this.inventoryAdjustmentService
+        .createQuickAdjustment(tenantId, quickInventoryAdjustment);
+      
+      return res.status(200).send({
+        message: 'The inventory adjustment has been created successfully.',
+      });
+    } catch (error) {
+      next(error);
+    }
+  }
+
+  /**
+   * Deletes the given inventory adjustment transaction.
+   * @param {Request} req
+   * @param {Response} res
+   * @param {NextFunction} next
+   */
+  async deleteInventoryAdjustment(req: Request, res: Response, next: NextFunction) {
+    const { tenantId } = req;
+    const { id: adjustmentId } = req.params;
+
+    try {
+      await this.inventoryAdjustmentService
+        .deleteInventoryAdjustment(tenantId, adjustmentId);
+      
+      return res.status(200).send({
+        message: 'The inventory adjustment has been deleted successfully.',
+      });
+    } catch (error) {
+      next(error);
+    }
+  }
+
+  /**
+   * Retrieve the inventory adjustments paginated list.
+   * @param {Request} req 
+   * @param {Response} res 
+   * @param {NextFunction} next 
+   */
+  async getInventoryAdjustments(req: Request, res: Response, next: NextFunction) {
+    const { tenantId } = req;
+    const filter = {
+      page: 1,
+      pageSize: 12,
+      ...this.matchedQueryData(req),
+    };
+
+    try {
+      const {
+        pagination,
+        inventoryAdjustments,
+      } = await this.inventoryAdjustmentService
+        .getInventoryAdjustments(tenantId, filter);
+      
+      return res.status(200).send({
+        inventoy_adjustments: inventoryAdjustments,
+        pagination: this.transfromToResponse(pagination),
+      });
+    } catch (error) {
+      next(error);
+    }
+  }
+
+  /**
+   * Handles service errors.
+   * @param {Error} error
+   * @param {Request} req
+   * @param {Response} res
+   * @param {NextFunction} next
+   */
+  handleServiceErrors(
+    error: Error,
+    req: Request,
+    res: Response,
+    next: NextFunction
+  ) {
+    if (error instanceof ServiceError) {
+      if (error.errorType === 'INVENTORY_ADJUSTMENT_NOT_FOUND') {
+        return res.status(400).send({
+          errors: [{ type: 'INVENTORY_ADJUSTMENT.NOT.FOUND', code: 100 }],
+        });
+      }
+      if (error.errorType === 'NOT_FOUND') {
+        return res.status(400).send({
+          errors: [{ type: 'ITEM.NOT.FOUND', code: 140 }],
+        });
+      }
+      if (error.errorType === 'account_not_found') {
+        return res.boom.notFound('The given account not found.', {
+          errors: [{ type: 'ACCOUNT.NOT.FOUND', code: 100 }],
+        });
+      }
+      if (error.errorType === 'ITEM_SHOULD_BE_INVENTORY_TYPE') {
+        return res.boom.badRequest(
+          'You could not make adjustment on item has no inventory type.',
+          { errors: [{ type: 'ITEM_SHOULD_BE_INVENTORY_TYPE', code: 300 }], }
+        );
+      }
+    }
+    next(error);
+  }
+}
\ No newline at end of file
diff --git a/server/src/api/index.ts b/server/src/api/index.ts
index 359803e70..0143b5200 100644
--- a/server/src/api/index.ts
+++ b/server/src/api/index.ts
@@ -37,6 +37,7 @@ import Media from 'api/controllers/Media';
 import Ping from 'api/controllers/Ping';
 import Subscription from 'api/controllers/Subscription';
 import Licenses from 'api/controllers/Subscription/Licenses';
+import InventoryAdjustments from 'api/controllers/Inventory/InventoryAdjustments';
 
 export default () => {
   const app = Router();
@@ -99,6 +100,7 @@ export default () => {
   dashboard.use('/resources', Container.get(Resources).router());
   dashboard.use('/exchange_rates', Container.get(ExchangeRates).router());
   dashboard.use('/media', Container.get(Media).router());
+  dashboard.use('/inventory_adjustments', Container.get(InventoryAdjustments).router());
 
   app.use('/', dashboard);
 
diff --git a/server/src/database/migrations/20200810121809_create_inventory_adjustments_table.js b/server/src/database/migrations/20200810121809_create_inventory_adjustments_table.js
new file mode 100644
index 000000000..b0b2351dd
--- /dev/null
+++ b/server/src/database/migrations/20200810121809_create_inventory_adjustments_table.js
@@ -0,0 +1,15 @@
+
+exports.up = function(knex) {
+  return knex.schema.createTable('inventory_adjustments', table => {
+    table.increments();
+    table.date('date').index();
+    table.string('type').index();
+    table.string('reason');
+    table.string('reference_no').index();
+    table.string('description');
+  });  
+};
+
+exports.down = function(knex) {
+  return knex.schema.dropTableIfExists('inventory_adjustments');
+};
diff --git a/server/src/database/migrations/20200810121810_create_inventory_adjustments_entries_table.js b/server/src/database/migrations/20200810121810_create_inventory_adjustments_entries_table.js
new file mode 100644
index 000000000..e58402ff2
--- /dev/null
+++ b/server/src/database/migrations/20200810121810_create_inventory_adjustments_entries_table.js
@@ -0,0 +1,15 @@
+
+exports.up = function(knex) {
+  return knex.schema.createTable('inventory_adjustments_entries', table => {
+    table.increments();
+    table.integer('adjustment_id').unsigned().index().references('id').inTable('inventory_adjustments');
+    table.integer('index').unsigned();
+    table.integer('item_id').unsigned().index().references('id').inTable('items');
+    table.decimal('new_quantity').unsigned();
+    table.decimal('new_cost').unsigned();
+  });
+};
+
+exports.down = function(knex) {
+  return knex.schema.dropTableIfExists('inventory_adjustments_entries');
+};
diff --git a/server/src/interfaces/InventoryAdjustment.ts b/server/src/interfaces/InventoryAdjustment.ts
new file mode 100644
index 000000000..d42ccf905
--- /dev/null
+++ b/server/src/interfaces/InventoryAdjustment.ts
@@ -0,0 +1,38 @@
+
+type IAdjustmentTypes = 'increment' | 'decrement' | 'value_adjustment';
+
+export interface IQuickInventoryAdjustmentDTO {
+  date: Date | string;
+  type: IAdjustmentTypes,
+  adjustmentAccountId: number;
+  reason: string;
+  description: string;
+  referenceNo: string;
+  itemId: number;
+  newQuantity: number;
+  newValue: number;
+};
+
+export interface IInventoryAdjustment {
+  id?: number,
+  date: Date | string;
+  adjustmentAccountId: number;
+  reason: string;
+  description: string;
+  referenceNo: string;
+  entries: IInventoryAdjustmentEntry[]
+};
+
+export interface IInventoryAdjustmentEntry {
+  id?: number,
+  adjustmentId?: number,
+  index: number,
+  itemId: number;
+  newQuantity: number;
+  newValue: number;
+}
+
+export interface IInventoryAdjustmentsFilter{
+  page: number,
+  pageSize: number,
+};
\ No newline at end of file
diff --git a/server/src/interfaces/index.ts b/server/src/interfaces/index.ts
index 0912db23b..da77e0ed8 100644
--- a/server/src/interfaces/index.ts
+++ b/server/src/interfaces/index.ts
@@ -38,4 +38,5 @@ export * from './JournalReport';
 export * from './AgingReport';
 export * from './ARAgingSummaryReport';
 export * from './APAgingSummaryReport';
-export * from './Mailable';
\ No newline at end of file
+export * from './Mailable';
+export * from './InventoryAdjustment';
\ No newline at end of file
diff --git a/server/src/models/InventoryAdjustment.js b/server/src/models/InventoryAdjustment.js
new file mode 100644
index 000000000..5edf37e4c
--- /dev/null
+++ b/server/src/models/InventoryAdjustment.js
@@ -0,0 +1,29 @@
+import { Model } from 'objection';
+import TenantModel from 'models/TenantModel';
+
+export default class InventoryAdjustment extends TenantModel {
+  /**
+   * Table name
+   */
+  static get tableName() {
+    return 'inventory_adjustments';
+  }
+
+  /**
+   * Relationship mapping.
+   */
+  static get relationMappings() {
+    const Account = require('models/InventoryAdjustmentEntry');
+    
+    return {
+      entries: {
+        relation: Model.BelongsToOneRelation,
+        modelClass: Account.default,
+        join: {
+          from: 'inventory_adjustments.id',
+          to: 'inventory_adjustments_entries.adjustmentId',
+        },
+      },
+    };
+  }
+}
diff --git a/server/src/models/InventoryAdjustmentEntry.js b/server/src/models/InventoryAdjustmentEntry.js
new file mode 100644
index 000000000..eb0e72b8c
--- /dev/null
+++ b/server/src/models/InventoryAdjustmentEntry.js
@@ -0,0 +1,29 @@
+import { Model } from 'objection';
+import TenantModel from 'models/TenantModel';
+
+export default class InventoryAdjustmentEntry extends TenantModel {
+  /**
+   * Table name
+   */
+  static get tableName() {
+    return 'inventory_adjustments_entries';
+  }
+
+  /**
+   * Relationship mapping.
+   */
+  static get relationMappings() {
+    const Account = require('models/InventoryAdjustment');
+    
+    return {
+      entries: {
+        relation: Model.BelongsToOneRelation,
+        modelClass: Account.default,
+        join: {
+          from: 'inventory_adjustments_entries.adjustmentId',
+          to: 'inventory_adjustments.id',
+        },
+      },
+    };
+  }
+}
diff --git a/server/src/services/Inventory/InventoryAdjustmentService.ts b/server/src/services/Inventory/InventoryAdjustmentService.ts
new file mode 100644
index 000000000..5e02df7f4
--- /dev/null
+++ b/server/src/services/Inventory/InventoryAdjustmentService.ts
@@ -0,0 +1,190 @@
+import { Inject, Service } from 'typedi';
+import { omit } from 'lodash';
+import {
+  EventDispatcher,
+  EventDispatcherInterface,
+} from 'decorators/eventDispatcher';
+import { ServiceError } from 'exceptions';
+import {
+  IQuickInventoryAdjustmentDTO,
+  IInventoryAdjustment,
+  IPaginationMeta,
+  IInventoryAdjustmentsFilter
+} from 'interfaces';
+import events from 'subscribers/events';
+import AccountsService from 'services/Accounts/AccountsService';
+import ItemsService from 'services/Items/ItemsService';
+import HasTenancyService from 'services/Tenancy/TenancyService';
+
+const ERRORS = {
+  INVENTORY_ADJUSTMENT_NOT_FOUND: 'INVENTORY_ADJUSTMENT_NOT_FOUND',
+  ITEM_SHOULD_BE_INVENTORY_TYPE: 'ITEM_SHOULD_BE_INVENTORY_TYPE',
+};
+
+@Service()
+export default class InventoryAdjustmentService {
+  @Inject()
+  itemsService: ItemsService;
+
+  @Inject()
+  accountsService: AccountsService;
+
+  @Inject()
+  tenancy: HasTenancyService;
+
+  @Inject('logger')
+  logger: any;
+
+  @EventDispatcher()
+  eventDispatcher: EventDispatcherInterface;
+
+  /**
+   * Transformes the quick inventory adjustment DTO to model object.
+   * @param {IQuickInventoryAdjustmentDTO} adjustmentDTO -
+   * @return {IInventoryAdjustment}
+   */
+  transformQuickAdjToModel(
+    adjustmentDTO: IQuickInventoryAdjustmentDTO
+  ): IInventoryAdjustment {
+    return {
+      ...omit(adjustmentDTO, ['newQuantity', 'newCost', 'itemId']),
+      entries: [
+        {
+          index: 1,
+          itemId: adjustmentDTO.itemId,
+          newQuantity: adjustmentDTO.newQuantity,
+          newCost: adjustmentDTO.newCost,
+        },
+      ],
+    };
+  }
+
+  /**
+   * Validate the item inventory type.
+   * @param {IItem} item
+   */
+  validateItemInventoryType(item) {
+    if (item.type !== 'inventory') {
+      throw new ServiceError(ERRORS.ITEM_SHOULD_BE_INVENTORY_TYPE);
+    }
+  }
+
+  /**
+   * Retrieve the inventory adjustment or throw not found service error.
+   * @param {number} tenantId -
+   * @param {number} adjustmentId -
+   */
+  async getInventoryAdjustmentOrThrowError(
+    tenantId: number,
+    adjustmentId: number
+  ) {
+    const { InventoryAdjustment } = this.tenancy.models(tenantId);
+
+    const inventoryAdjustment = await InventoryAdjustment.query()
+      .findById(adjustmentId)
+      .withGraphFetched('entries');
+
+    if (!inventoryAdjustment) {
+      throw new ServiceError(ERRORS.INVENTORY_ADJUSTMENT_NOT_FOUND);
+    }
+    return inventoryAdjustment;
+  }
+
+  /**
+   * Creates a quick inventory adjustment for specific item.
+   * @param {number} tenantId - Tenant id.
+   * @param {IQuickInventoryAdjustmentDTO} quickAdjustmentDTO - qucik adjustment DTO.
+   */
+  async createQuickAdjustment(
+    tenantId: number,
+    quickAdjustmentDTO: IQuickInventoryAdjustmentDTO
+  ) {
+    const { InventoryAdjustment } = this.tenancy.models(tenantId);
+
+    // Retrieve the adjustment account or throw not found error.
+    const adjustmentAccount = await this.accountsService.getAccountOrThrowError(
+      tenantId,
+      quickAdjustmentDTO.adjustmentAccountId
+    );
+    // Retrieve the item model or throw not found service error.
+    const item = await this.itemsService.getItemOrThrowError(
+      tenantId,
+      quickAdjustmentDTO.itemId
+    );
+    // Validate item inventory type.
+    this.validateItemInventoryType(item);
+
+    // Transform the DTO to inventory adjustment model.
+    const invAdjustmentObject = this.transformQuickAdjToModel(
+      quickAdjustmentDTO
+    );
+
+    await InventoryAdjustment.query().upsertGraph({
+      ...invAdjustmentObject,
+    });
+    // Triggers `onInventoryAdjustmentQuickCreated` event.
+    await this.eventDispatcher.dispatch(
+      events.inventoryAdjustment.onQuickCreated,
+      {
+        tenantId,
+      }
+    );
+  }
+
+  /**
+   * Deletes the inventory adjustment transaction.
+   * @param {number} tenantId - Tenant id.
+   * @param {number} inventoryAdjustmentId - Inventory adjustment id.
+   */
+  async deleteInventoryAdjustment(
+    tenantId: number,
+    inventoryAdjustmentId: number
+  ): Promise<void> {
+    // Retrieve the inventory adjustment or throw not found service error.
+    const adjustment = await this.getInventoryAdjustmentOrThrowError(
+      tenantId,
+      inventoryAdjustmentId
+    );
+    const {
+      InventoryAdjustmentEntry,
+      InventoryAdjustment,
+    } = this.tenancy.models(tenantId);
+
+    // Deletes the inventory adjustment entries.
+    await InventoryAdjustmentEntry.query()
+      .where('adjustment_id', inventoryAdjustmentId)
+      .delete();
+
+    // Deletes the inventory adjustment transaction.
+    await InventoryAdjustment.query().findById(inventoryAdjustmentId).delete();
+
+    // Triggers `onInventoryAdjustmentDeleted` event.
+    await this.eventDispatcher.dispatch(events.inventoryAdjustment.onDeleted, {
+      tenantId,
+    });
+  }
+
+  /**
+   * Retrieve the inventory adjustments paginated list.
+   * @param {number} tenantId 
+   * @param {IInventoryAdjustmentsFilter} adjustmentsFilter 
+   */
+  async getInventoryAdjustments(
+    tenantId: number,
+    adjustmentsFilter: IInventoryAdjustmentsFilter
+  ): Promise<{
+    inventoryAdjustments: IInventoryAdjustment[];
+    pagination: IPaginationMeta;
+  }> {
+    const { InventoryAdjustment } = this.tenancy.models(tenantId);
+
+    const { results, pagination } = await InventoryAdjustment.query()
+      .withGraphFetched('entries')
+      .pagination(adjustmentsFilter.page - 1, adjustmentsFilter.pageSize);
+
+    return {
+      inventoryAdjustments: results,
+      pagination,
+    };
+  }
+}
diff --git a/server/src/subscribers/events.ts b/server/src/subscribers/events.ts
index a6219b022..0e55b0406 100644
--- a/server/src/subscribers/events.ts
+++ b/server/src/subscribers/events.ts
@@ -191,5 +191,11 @@ export default {
     onComputeItemCostJobScheduled: 'onComputeItemCostJobScheduled',
     onComputeItemCostJobStarted: 'onComputeItemCostJobStarted',
     onComputeItemCostJobCompleted: 'onComputeItemCostJobCompleted'
+  },
+
+  inventoryAdjustment: {
+    onCreated: 'onInventoryAdjustmentCreated',
+    onQuickCreated: 'onInventoryAdjustmentQuickCreated',
+    onDeleted: 'onInventoryAdjustmentDeleted',
   }
 }