inventory adjustment

After netting off the opening balance and qty issued ,the closing balance of raw material in ERP is 800 tons.But as physical stock verification ,the stock is only 300 tons.So we adjusted the inventory by -500.This has reduced the raw material consumption in TB and boosted the profit.Our finance man says the concept is wrong and instead a reverse issue docket should be posted to rectify the shortage in inventory.please help
Regards
Umesh