Inventory Cost Adjustment

To correct the unit cost of stock items in inventory, use an Inventory Adjustment transaction. 

 NOTE: If lot/serial class tracking is enabled, the steps are slightly different and outlined in a separate section below.

Correct Stock Item Cost (NO lot/serial tracking)

1. Calculate the value of the Inventory Adjustment 

1. 1. Use the Inventory Summary to find the current On Hand, Unit Cost and Total Cost.  
   2. Calculate the New Total Cost by taking the On Hand quantity multiplied by the new Unit Cost. 
   3. Calculate the Adjustment to Total Cost (used in the Inventory Adjustment transaction) by subtracting the current total cost from the new total cost.  A negative amount will decrease total cost, a positive amount will increase total cost.

2. Create Inventory Adjustment:

1. 1. Open new Inventory Adjustment 
   2. Enter Inventory ID
   3. Enter Warehouse/Location
   4. Leave Quantity = 0.00
   5. Zero Out Unit Cost
   6. <Tab>
   7. Enter Adjustment to Total Cost calculated in previous step in the Ext Cost column.

3. Release. 

4. Refresh Inventory Summary.  The new Unit Cost and Total Cost should now display.

Correct Stock Item Quantities with Lot/Serial Tracking

If tracking lot/serial numbers on a stock item, the unit cost of each lot/serial number MUST be corrected separately.

1. Calculate the value of the cost adjustment per Lot/Serial Nbr
   1. Use the Inventory Summary to find the current On Hand, Unit Cost and Total Cost.  
   2. Select the Expand by Lot/Serial Number checkbox. 
   3. Calculate the New Total Cost for each lot/serial nbr. by taking the On Hand quantity multiplied by the new Unit Cost. 
   4. Calculate the Adjustment to Total Cost (used in the Inventory Adjustment transaction) for each lot/serial nbr.by subtracting the current total cost from the new total cost. A negative amount will decrease total cost, positive amount will increase total cost.   

Note:  Updating the unit cost on three (3) lot numbers, AM-006501, AM-006503, and AM-006509, in the example below.

               AM-006503

On Hand x New Unit Cost = New Total Cost

798 x .80 = 638.40

New Total Cost - Current Total Cost = Adjustment to Total Cost (used in Adjustment Transaction)

638.40 – 598.50 = 39.99

     AM-006509

On Hand x New Unit Cost = New Total Cost

840 x .80 = 672.00

New Total Cost - Current Total Cost = Adjustment to Total Cost (used in Adjustment Transaction)

672.00 – 630.00 = 42.00

2. Create Inventory Adjustment:

1. 1. Open a new Inventory Adjustment
   2. Enter Inventory ID
   3. Enter Warehouse/Location
   4. Leave Quantity = 0.00
   5. Zero Out Unit Cost
   6. <Tab>
   7. Enter Adjustment to Total Cost amount calculated in previous step in the Ext Cost column (negative amount will decrease total cost, positive amount will increase total cost)
   8. Select Lot/Serial Nbr.  
   9. Enter a separate line on the adjustment transaction for each lot/serial number.

3. Release.

4. Refresh Inventory Summary.  The new Unit Cost and total cost for each Lot/Serial Nbr. should now display.