Making Inventory Adjustments

From the Inventory Adjustment Entry window, 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 Adjustmentscontrol 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 Adjustmentscontrol 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:

  1. From the Warehouse Management menu, select Inventory Adjustment Entry to display the Inventory Adjustment Entry dialog box.

  2. In the AdjustmentDate field, enter the date of the adjustment and press Enter.

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.ALLOWEDLevel 1), the system displays a message indicating no open adjustments exist and that you do not have the authorization to create new adjustments.

 Important: You cannot edit an adjustment date that is in a closed period. The system will display the order in view-only mode and you cannot change it.

 

  1. Select New from the list.

  2. In the Adjustment Branch field, enter the branch to which the product you are adjusting belongs and click OK to display the Inventory Adjustment Entry window.

When...

The system...

creating a new register

assigns the adjustment a number, which displays in the Adjustment IDfield. Your ID displays in theUser IDfield.

viewing a register

displays the adjustment number in the Adjustment IDfield and the user ID of the user who created the register in theUser IDfield.

  1. In the Header Comments field, do one of the following depending on the Validate Inventory Adjustment Header Commentscontrol maintenance record set up:

The accounts defined in the Valid Inventory Adjustment Commentscontrol 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.

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 No.

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

    For...

    Enter...

    product adjustments that add inventory

    an adjustment 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.

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

From the Edit menu, select Find Product to locate a product using a search string.

  1. At the dialog box stating that you are affecting inventory levels and asking if you want to continue, click OK to continue.

The system Closedpopulates the rest of the window's fields. If you are entering adjustments for a detail lot or lot item, the Split Locations window displays. Enter the lot and quantity you are adjusting and save your changes to populate the Inventory Adjustment window.

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.VIEWauthorization key, theCosthot key is disabled.

If the Allow Zero Average Cost In Inventory Adjustmentscontrol 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:

  1. Cost recorded in the detail lot product's Inventory Adjustment Entry record.

  2. If the cost in Inventory Adjustment Entry is null or zero, the average cost of the detail lot product.

  3. If the average cost is null or zero, the COGS cost of the detail lot product.

Adj Cost

The cost per item that is adjusted in G/L accounts.

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 window.

Location

The warehouse location of the product you are adjusting. The system populates this information from the Product Location Maintenance window.

Note: If you use Zone Maintenance, you must enter a valid location.

 

Note: 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.

  1. From the Edit menu, select Comments to enter any additional comments to identify the adjustment, for example, Vendor sent bonus items.

  2. Repeat these steps until you have adjusted all necessary product inventory.

  3. Save your changes and exit the window.

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

More Options from the Inventory Adjustment Entry window

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

To...

Select this menu option...

view a product's future activity, such as if the product has been ordered for a sale that ships next week

Inquiry > Future Ledger

The Product Future Ledger window displays.

view the product's past activity, such as if the product was ordered for a sale that shipped last month

Inquiry > History Ledger

The Inventory History Ledger window displays.

edit product information, such as price and buy line information

Inquiry > Product Maintenance

The Product Maintenance window displays.

view gross and net cost adjustments for the adjustment register

Edit > Totals

The Adjustment Totals window displays, which contains the total cost based on the currently displayed cost for the selected register.

cancel an adjustment

Edit > Cancel

view and reselect (if necessary) the general ledger account and the

Edit > G/L Account

If the Auto Prompt For G/L Account Detail Notescontrol maintenance record is set to Yes, the system prompts you to enter detail notes for the account and the entry when you exit the window.

enter serial numbers for a serialized product

Edit > Serial #s

If the product you are adjusting is not set up for serial numbers, the Serial #s option is inactive. For additional information, see Entering Product Serial Numbers.

view all inventory changes for the adjustment register

File > Change Log

The Change Log Viewing window displays.

See Also:

Inventory Adjustment Entry Overview

Setup Requirements for Inventory Adjustment Entry

Adjusting Inventory for Store-Use Items

Inventory Adjustments for Laminate Products