Adjusting inventory costs

You can adjust inventory costs after the receiving document has been released. This may be necessary if an item cost was entered incorrectly on a receiving document and you did not notice it until after it was released. This procedure explains how to adjust item costs on released receiving documents.

Receipt records are created in Inventory Control, Purchasing, Item and Order Billing, Requisitions, and Production Management. Cost adjustments are made by company, location, item number, document type, document ID, and line number. The receipt document types are adjustment, customer return, physical inventory adjustment, PO receiving, receipt, requisition return, and receipt transfer.

You cannot make cost adjustments for purchase order receipts.

Note: You cannot view or make changes to the cost adjustment on Cost Adjustments after you release the document. Use Transaction History to view the document and create an adjustment to change stock-on-hand.
  1. Select Inventory Lists > Inventory Cost History.
  2. Click Search.
    You can also specify the Company, Inventory Location, Item, System Code, Document Type, Received Date, Originating Document, Transaction fields.
  3. On the highlighted cost history record, select Cost Adjustment.
  4. Specify this information:
    Update Date
    Select the update date and time.
    GL Post Date
    Select a Global Ledger posting date to override the defined date for this receipt record. This date indicates which general ledger period to post transactions.
    New Unit Cost
    Specify the new unit cost for the receipt record. This cost overrides the current unit cost. If the new unit cost is zero, then leave this field blank and select the check box on the Adjust To Zero field.
    Adjust To Zero
    Select this check box to cancel the unit cost value that is previously defined. When you cancel a value, the previous value no longer affects the average costing for your company.
    Offset Account
    Specify the account information for the desired receipt offset transaction dimension. If the unit cost is increased, then this account is used as the credit account. If the cost is decreased, then this account is used as the debit account on the resulting Global Ledger transaction.
    Reason Code
    Select a value indicating a location in Reason Codes. The associated offset accounts with the reason code override the default accounts for any transaction except transfers and physical inventory variances.
    Line Comment
    Provide a comment about this cost adjustment.
  5. Click OK.