Adjustments to inventory
After you complete a physical or cycle count, record the actual quantities, and mark the count run as complete. The differences are posted to the inventory accounts in Distribution SX.e.
If the counted quantity was greater than expected, you must make a positive adjustment to the customer- or distributor-owned inventory. If the counted quantity was less than expected, a negative adjustment is first made to the customer-owned inventory. The remaining balance is applied to distributor-owned inventory.
The Cost Adjustments Billable option in Product Warehouse Description Setup-Storeroom determines how updates are performed. If this option is selected and a product shows a negative adjustment, it is assumed that the difference was issued. A stock order is created to capture the cost of the product and the customer is billed for that amount. For a positive adjustment, a return merchandise sales order (OE RM) is created to adjust sales and inventory accounts, and credit the customer for the inventory.
If Cost Adjustments Billable is not selected, only stock adjustments are made to inventory accounts for adjustments that were made in Storeroom. A negative adjustment is first applied to customer-owned inventory first. The remaining balance is applied to distributor-owned inventory. Positive adjustments, or returns, are added to either customer- or distributor-owned inventory, based on your selection in Count Entry.
To verify the adjustments, run the Product Entry Physical Reconciliation Report in Distribution SX.e before you complete the count for a run in Count Entry.
This table shows the results of the adjustments if the Cost Adjustment Billable option is selected.
| Type of adjustment | Adjust customer or distributor inventory | Adjust On Hand or Unavailable balance | Result |
|---|---|---|---|
|
Positive |
C |
On Hand |
An OE RM order is created with a customer-owned product line for the quantity that is equal to the adjustment amount. The RM is not tied to original order. The customer On Hand balance is increased. |
|
Positive |
C |
Unavailable |
An OE RM order is created with a customer-owned product line for the quantity that is equal to the adjustment amount. A Return/Adjustment reason of unavailable is recorded against line. The customer Unavailable balance is increased. |
|
Negative |
No selection |
On Hand |
A stock order is created with a customer-owned product line for the quantity that is equal to the current customer net available. If the adjustment is greater than net available, an additional line with distributor-owned product is created for difference. The customer On Hand balance is reduced by the customer-owned line amount. The distributor On Hand balance is reduced by the distributor-owned line amount. |
|
Negative |
No selection |
Unavailable |
A stock adjustment decreases the customer Unavailable balance and increases the customer On Hand balance by the count adjustment amount. A stock order is created with a customer-owned product line for the quantity that is equal to the current customer net available. If the adjustment is greater than net available, an additional line with distributor-owned product is created for difference. The customer On Hand balance is reduced by customer-owned line amount. The distributor On Hand balance is reduced by distributor-owned line amount. |
|
Positive |
D |
On Hand |
An OE RM order is created with a distributor-owned product line for the quantity that is equal to the adjustment amount. The RM is not tied to original order. The distributor On Hand balance is increased. |
|
Positive |
D |
Unavailable |
An OE RM order is created with a distributor-owned product line for the quantity that is equal to the adjustment amount. A Return/Adjustment reason of unavailable is recorded against line. The distributor Unavailable balance is increased. |
This table shows the results of the adjustments if the Cost Adjustment Billable option is not selected.
| Type of adjustment | Adjust customer or distributor inventory | Adjust On Hand or Unavailable balance | Result |
|---|---|---|---|
|
Positive |
C |
On Hand |
A stock adjustment is created to increase the customer On Hand balance by the count adjustment amount. |
|
Positive |
C |
Unavailable |
A stock adjustment is created to increase the customer Unavailable balance by the count adjustment amount. |
|
Negative |
No selection |
On Hand |
The count adjustment amount is compared to the customer On Hand balance. If the count adjustment amount is less than the customer On Hand balance, a stock adjustment decreases the customer On Hand balance by the count adjustment amount. If the count adjustment amount is greater than the customer On Hand balance, then a stock adjustment decreases the customer On Hand balance to zero. A second stock adjustment decreases the distributor On Hand balance for the remainder. |
|
Negative |
No selection |
Unavailable |
The count adjustment amount is compared to the customer Unavailable balance. If the count adjustment amount is less than the customer Unavailable balance, a stock adjustment decreases the customer Unavailable balance by the count adjustment amount. If the count adjustment amount is greater than the customer Unavailable balance, then a stock adjustment decreases the customer Unavailable balance to zero. A second stock adjustment decreases the distributor Unavailable balance for the remainder. |
|
Positive |
D |
On Hand |
A stock adjustment increases the distributor On Hand balance by the count adjustment amount. |
|
Positive |
D |
Unavailable |
A stock adjustment increases the distributor Unavailable balance by the count adjustment amount. |
After the adjustments to inventory are applied and the count is updated, these details from the count run are copied to an internal table, and the existing count records are removed.
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