The former Everton youngster was disciplined this week after an “incident” over the weekend.
The Blades have refused to reveal what the 23-year-old did wrong, and Adkins stayed silent yesterday when talking to the media ahead of Saturday’s FA Cup tie with Oldham Athletic.
“Everyone is well aware I am very strong on discipline at the football club,” said Adkins. “If someone steps out of line, they get disciplined and that’s what we have done with Jose on this situation.
“We have talked about it, had our own review of what’s gone on, and Jose has been disciplined.”
Baxter missed Saturday’s derby draw at Barnsley with a leg injury - which saw him substituted in the previous game against Shrewsbury Town.
But Adkins is a big fan of the midfielder, who he claims has been “one of the pivotal figures” in United’s season.
He said: “Jose was injured for Saturday’s game, he got injured against Shrewsbury at half-time.
“He got a nasty blow to the leg. Jose has been doing well for us this season, that’s seven goals he has for us now.
“He’s been one of the pivotal figures in the team this season. A very good attacking midfield player, he’s got talent.
“A young lad, and like all players, learning their way in the world.
“People sometimes do things which they will regret later on in life, or regret at the time, and they need to know the consequences of that.
“We have to make sure we are here to help them understand what discipline is all about.
“Jose didn’t play at the weekend because he was injured, something’s gone on where he stepped out of line, and as a football club we have done what we needed to from a discipline point of view.
“We have done it with other players in the past. It’s put to bed from our point of view, no more further comments, and we get on.”