Making Inventory Adjustments

From the Inventory Adjustment Entry screen, you can view all adjustments made to an adjustment register in its Change Log, enter the G/L accounts the adjustment affects, view a product's history and projected need, and enter comments to accompany the adjustment.

If you set the Allow Zero Average Cost In Inventory Adjustments control maintenance to Yes, and an average cost basis is used as the global COGS basis, then the average cost is always used as the cost for the adjustment, even if it is zero. Use the Require Change Log Comments On Inventory Adjustments control maintenance record to write inventory adjustment changes to a log.

Note: Inventory Adjustment Entry does not allow adjustments for miscellaneous charge products or kit items. Use Product Location Maintenance to make adjustments for those items.

To make an inventory adjustment:

From the Whse Mgt menu, select Inventory Adjustment Entry to display the Inventory Adjustment Entry screen.
In the Date field, enter the date of the adjustment.

The system prompts you to select from existing adjustment registers if any exist from the adjustment date or to create a new register.

Note: If you are not assigned the correct authorization level (at least INVADJ.ALLOWED Level 1), the system displays a message indicating no open adjustments exist and that you do not have the authorization to create new adjustments.

Note: In addition, you cannot view an adjustment date that is in a closed period.

When...	The system...
creating a new register	assigns the adjustment a number, which displays in the Adj# field. Your ID displays in the User ID field.
viewing a register	displays the adjustment number in the Adj# field and the user ID of the user who created the register in the User ID field.

If you know the adjustment number, you can enter that number in the Adj# field instead of entering a date.

In the Br # field, enter the branch to which the product you are adjusting belongs.
In the Header Comment field, do one of the following depending on the Validate Inventory Adjustment Header Comments control maintenance record set up:

If set to Y, press F10 and select a pre-set header comment. The Header comment you select drives the selection of the G/L account to which the adjustment posts. Use the G/L Acct hot key to change the G/L account and the subledger account.

The accounts defined in the Valid Inventory Adjustment Comments control maintenance record determines which G/L account the system uses. If no accounts are defined in this record, the system uses the Inventory Adjustment Charges account.
If set to N, enter your own header comment, such as Adjustment after cycle count if you were adjusting inventory after a cycle count.

Note: The system does not let you enter your own header comment unless the Validate Inventory Adjustment Header Comments control maintenance record is set to N.

In the Qty/Unit field, enter the number of items by which the inventory is off.

For...	Enter...
product adjustments that add inventory	a positive number, showing there are more products than shown in your inventory records.
product adjustments that take away inventory	a negative number. For example, enter -5 for an adjustment showing there are five fewer products than shown in your inventory records.

In the Product Description field, enter the product whose inventory you are adjusting.

Use the Find PN hot key to locate a product using a search string.

At the prompt stating that you are affecting inventory levels and asking if you want to continue, enter Y to continue.

The system populates the rest of the screen's fields. If you are making an adjustment to a lot or detail lot product, the Split Locations screen displays. Enter the lot number for which you are adjusting inventory and the quantity you are adjusting for each and press Esc to populate the Inventory Adjustment screen.

Field	Description
COGS Cost or COMM Cost	The cost per item that is adjusted in the G/L accounts. Use the Cost hot key to change the column between the COGS cost and the commission cost. If you are not assigned the COGS.VIEW authorization key, the Cost hot key is disabled. If the Allow Zero Average Cost In Inventory Adjustments control maintenance record is set to Yes, and an average cost basis is used as the global COGS basis, then the average cost is always used as the cost for the adjustment, even it if is zero. For detail lot products, the system selects the cost using the following hierarchy: Cost recorded in the detail lot product's Inventory Adjustment Entry record. If the cost in Inventory Adjustment Entry is null or zero, the average cost of the detail lot product. If the average cost is null or zero, the COGS cost of the detail lot product.
T (Type)	The product location type: S – Stock F – Defective O – Over shipment R – Review L – Display The system populates this information from the Product Location Maintenance screen.
Location	The primary warehouse location of the product you are adjusting if the product is not a lot or detail lot product. The system populates this information from the Product Location Maintenance screen. Enter a different location, if necessary. For lot and detail lot products, the warehouse location you entered in the Split Locations screen. Note: If you use Zone Maintenance, you must enter a valid location.
Ext Cost	The extended cost of the line item in whole dollars. Use the View hot key to change between the Standard view and the Extended Cost view. The view to which the system defaults for the screen is set in the Inventory Adjustment Default View control Maintenance record.

You can edit the information in the above fields, however, we recommend that you do not edit these fields as it affects monetary account information in the system.

Use the Cmt hot key to enter any additional comments to identify the adjustment, for example, Vendor sent bonus items.
Repeat these steps until you have adjusted all necessary product inventory.

Press Esc to put the adjustments into effect.

If the Require Change Log Comments On Inventory Adjustments control maintenance record is set to Yes or Display on Adjustment, enter a comments in the Change Log Viewing screen. The comment is added to the adjustment as a general comment.

More Options from the Inventory Adjustment Entry screen

The Inventory Adjustment Entry screen also offers these options to view addition information about the product you are adjusting.

Hot Key	Function
Fut Ledger	Displays the Future Ledger screen. Use this screen to view a product's future activity, such as if the product has been ordered for a sale that ships next week.
Hist Ledger	Displays the History Ledger screen. Use this screen to view the product's past activity, such as if the product was ordered for a sale that shipped last month.
Prd Maint	Displays the Product Maintenance screen. Use this screen to edit product information, such as price and buy line information.
Totals	Displays the Adjustment Totals screen, which contains the total cost based on the currently displayed cost for the selected register. Use this screen to view gross and net cost adjustments for the adjustment register.
Cancel	Cancels an adjustment
Chg Log	Displays the Change Log Viewing screen. Use this screen to view all inventory changes for the adjustment register.
G/L	Use to view and reselect (if necessary) the general ledger account and the subledger account that the adjustment affects, depending on how the SubLedger Allowed field is set for the G/L account on the G/L SubLedger Maintenance screen. If the Auto Prompt For G/L Account Detail Notes control maintenance record is set to Yes, the system prompts you to enter detail notes for the account and the entry when you exit the screen.
Ser #	Displays the Serial Number Entry screen. Use this screen to enter or view serial numbers for the product. If the product you are adjusting is not set up for serial numbers, the Ser # hot key is inactive.
View	Use to view the extended cost or standard cost for an adjustment line item. The Inventory Adjustment Default View control maintenance record determines the view to which the system defaults, Standard or Extended Cost, for the Inventory Adjustment Entry screen. The Extended Cost view displays the extended cost of the line item in whole dollars.
Cost	Use to view either the cost of goods sold (COGS) or the commission cost (COMM Cost) for an adjustment line item. If you are not assigned the COGS.VIEW authorization key, the Cost hot key is disabled. You cannot make changes to the cost in the COMM Cost view.