Adjust Cost of Previous Receipts

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Expand/Collapse item  Overview

It may be necessary to adjust the unit cost information for items that have been previously received. Use the following procedure to adjust the cost of items in stock.

The unit cost for the negative adjustment is set to the old unit cost. The unit cost entered for a positive adjustment is used to calculate a new unit cost for the cost tier based on the weighted average of the old unit cost and the new cost.

You can also use Transaction Entry to adjust quantities and costs, goods returned from customers, and quantities on hand. For more information, see Adjust Quantities and Costs, Adjust Goods Returned from Customer, and Adjust Quantities on Hand.

For standard cost items, you can also change the standard cost using Item Maintenance or Automatic Cost and Price Change; however, changes made using these tasks will not affect the Inventory general ledger account.

Expand/Collapse item  Before You Begin

For serial items, you must first update the negative adjustment before entering the positive adjustment. For the other valuation methods, the negative adjustment and positive adjustment can be made during the same update.

To adjust cost of previous receipts

  1. Select Inventory Management Main menu > Transaction Entry.

  2. In the Transaction Type field, select Adjustments. For more information, see Transaction Entry - Fields.

  3. Click the Next Entry No. button.

  4. Click the Lines tab. You must enter two adjustment lines per item. Each line on the receipt being adjusted will be for the original quantity received.

  1. On the first line, in the Quantity field, enter the receipt quantity as a negative number. In the Unit Cost field, enter  the old cost amount as a positive number .

  2. On the second line, in the Quantity field, enter the receipt quantity as a positive number. In the Unit Cost field, enter  the new cost as a positive number.

  3. For LIFO, FIFO, lot, or serial items, you must make both the negative and positive adjustments to the same cost tier (the receipt date and reference for LIFO, FIFO, lot, or serial number for lot or serial items) by clicking the Lot/Serial Distribution button on the Transaction Entry Lines tab and distributing the quantities to the correct cost tier.

  4. For average cost items, a new average cost is calculated based on the new unit cost information. To change the item's unit cost to a specific dollar amount, you must first adjust all quantities on hand by entering the negative amount on hand and old cost amount. You can then make another entry with the positive quantity on hand and the new unit cost amount.

  1. Print and update the Transaction Journal and the Daily Transaction Register to update the Inventory general ledger account using the new unit cost information.

The cost of previous receipts have been adjusted.