Product Adjustment Entry overview

General Ledger impact

Adjusting product levels has a direct effect on the General Ledger. When you click Update for the first time, a journal is opened. The journal remains open until you close it. You can select Print Journal to print the journal as soon as you close it. You can also review the journal entries in GL Journal Inquiry.

The GL account codes that are used for the adjustment are based on your General Ledger integration.

If you use divisionalized accounting, inventory adjustments must be for a specific division. Inventory adjustments cannot cross divisions or warehouses. The division is based on the value in the Division field in Product Warehouse Description Setup. The IC Cost Adjustments account in Product General Ledger Distribution Setup or SA Operator Setup-Other Options is used for adjustments. This account is used when Standard or Replacement is selected for Post to G/L By in SA Administrator Options-Products-Costs. The account is updated when variances from standard or replacement costs occur in Purchase Receipt of Inventory Entry and Vendor Invoice Center Entry.

Another use for the IC Cost Adjustments account is the stock adjustment transaction, which is posted to Inventory Control. It updates the General Ledger when the quantity that is shipped for a product exceeds its net available balance. When you enter a transaction, the General Ledger is updated with the cost that is selected in Post to G/L By.

For example, if you use the standard cost of $900.00 to update the General Ledger, the GL accounts show a positive adjustment for that amount. If a product cost is based on a special costing unit, it is stored with the transaction:

	DR	CR
IC Control Account	$900.00
Physical Adjustment		$900.00

See General Ledger integration.

Overriding the default IC Cost Adjustments account

Normally, you would use the default IC Cost Adjustments account defined in Product GL Distribution Setup or SA Operator Setup-Other Options when making stock adjustment entries in Product Adjustment Entry. However, if you segregate your inventory adjustments into different GL accounts for reporting and auditing, you may override the default IC Cost Adjustments account. To enable this override, select Use GL Distribution Screen in SA Administrator Options-Products-Defaults in the IC Cost Adjustment GL Account in Product Adjustment Entry (ICEPA) field. When you record a stock adjustment and click Update in Product Adjustment Entry, a GL journal is opened and the General Ledger Distribution window is displayed. The Account field in the General Ledger grid displays the default IC Cost Adjustments account, but it can be changed.

To prevent users from overriding the default GL account in Product Adjustment Entry, select Use ICSEG/Operator for the IC Cost Adjustment GL Account in Product Adjustment Entry (ICEPA) option. The General Ledger Distribution window is not displayed in this case, and the default IC Cost Adjustments account is updated automatically.

Serial and lot entry

If you specify a serial or lot product, you must specify the required number of serial or lot numbers before the transaction can be completed. The serial or lot page opens when you click Update. Your selection for the Roll Up Serial/Lot Costs option in SA Administrator Options-Products-Costs determines if costs should be rolled.

An order number is assigned for each serial number or lot transaction. Typically, the order number consists of the order number and a two-digit suffix. The order number updates the serial number and lot transaction so you can associate the serial and lot records with a specific Inventory Control transaction. An order number with a suffix of 99 is automatically assigned for serial and lot products.