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 the Inventory Control, Purchase Order, Order Entry, Requisitions, and Production Order applications. 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.

Procedure flow: Adjusting inventory costs

To adjust inventory costs

  1. Access Cost Adjustments (IC28.1).
  2. Add header information.
  3. Type the correct unit cost for the item.
  4. If your company is set up to use the average costing method, you can adjust the cost of an item to zero to cancel the incorrect cost from the average.
    1. Set the Adjust to Zero flag to Y (Yes).
    2. Select the Change form action.
    3. Delete the Y from the Adjust to Zero field.
  5. Select the Change form action.
    Caution: 
    You cannot view or make changes to the cost adjustment on Cost Adjustments (IC28.1) after you release the document. Use Transaction History (IC50.1) to view the document and create an adjustment to change stock-on-hand.
  6. Release the document.

Related reports and inquiries

To Use
View the cost history for inventory quantities that are received at a specific location Cost History (IC47.1)
List past transaction usage of an item for a specified period Usage History (IC49.1)
Audit transaction history records by update or transaction date Transaction History (IC50.1)
Audit transaction history records in detail Detail Transaction History (IC50.2)
Audit transaction history by update date, transaction date, transaction type, accounting unit, transaction value, and unit price Transaction History Inquiry (IC55.1)
Display transaction records for all documents created in the Inventory Control application Inventory Documents (IC53.1)
Print item transaction history for a specified date range Transaction History Report (IC220)
List unreleased documents for a company Unreleased Documents (IC222)
Audit transaction quantities and stock-on-hand balances for a specific period and year Transaction Audit Report (IC242)
View the daily inventory transactions Daily Transaction Summary (IC37)
View the stock on hand at a company level, report group level, or location level Inventory Status (IC46)
Print the accumulated inventory transaction amounts for a specified company, location, report group, groups of document type, or group of items Transactions by Document Type (IC287)
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