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Creating inventory item adjustments in AccountMate Enterprise is crucial in recording inventory shrinkage, spoilage and other inventory changes that do not result from purchase or sales transactions.  If the Purchase Order module is not activated, inventory item adjustments are useful in recording receipts from vendors.

 

Inventory adjustments are recorded using the Inventory Adjustment function available in the Sales Order, Accounts Receivable and Inventory Control modules.  

 

 

To create inventory item adjustments, perform the following steps:

 

1.Access the Inventory Adjustment function from the Adjustment group in the Transactions main menu from the following modules: Inventory Control, Sales Order, Accounts Receivable, and Purchase Order.

 

2.In the Type area, select from these options the type of adjustment you want to create:

 

oQuantity Adjustment

 

oUnit Cost Adjustment

 

oTotal Cost Adjustment

 

 

3.To specify the affected warehouse for this inventory item adjustment, enter in the Warehouse field your desired warehouse previously set up for this inventory item. Alternatively, click the Lookup button beside the Warehouse field to search for the warehouse; then, click to select. Note that the Warehouse field is a required field for the system to proceed with the adjustment process.

 

4.Enter in the Adjustment Date field the effective date of this adjustment. The default date is the current system date.

 

5.To easily identify and describe the nature of this inventory item adjustment transaction, enter a short narrative explanation or description in the Remarks field.  The value entered in this field will be displayed in the Inventory Adjustment Report.

 

6.If you want this adjustment to generate a journal entry for transfer to the General Ledger module when you perform the Period-End Closing or Post Data to GL functions in its respective module, mark the Post to GL checkbox; then, view or amend the GL account IDs displayed in the following fields:

 

oInventory

 

oAdjustment

 

 

7.Enter in the Item # field the number of the inventory item that you want to create an inventory adjustment. If the inventory item you entered is a special item (e.i., item with specifications, kit item or lot-controlled), the Specifications column becomes enabled where you can choose the particular item specification that you want to adjust window.

 

 

8.To create the actual quantity adjustment, perform the following steps:

 

 

 

 

 

 

9.To amend the average unit cost for all inventory item quantity (if Unit Cost Adjustment option is selected in the Type area), enter the desired unit cost for all inventory item quantities in the New Cost field.  The system will automatically compute the new total cost for this inventory item.

 

10.To increase or decrease the total value of an inventory item (if Total Cost Adjustment option is selected in the Type area), enter the desired amount that will be added or deducted from the total value amount of the inventory item in the Cost Adjustment field. If the adjustment is a deduction, verify that the adjustment amount in this field is preceded by a minus sign (-).  The system will automatically compute the new total value for this inventory item.

 

11.To save your adjustment, click the Save button in the function toolbar; otherwise, click Cancel to abort creating the adjustment transaction.

 

 

 

How to Decrease Inventory Item Quantity with a Different Unit Cost

 

The system will not allow you to adjust the unit cost and total value of an inventory once you make a negative adjustment quantity for an inventory item.  The system will automatically disable the Unit Cost field in the Quantity Adjustment type transaction.  If the decreased quantity has a different unit cost, you must perform the following steps:

 

1.Perform Steps #1 to #7 outlined in the discussion above.

 

2.To specify the affected bin of the selected warehouse, enter in the Bin field the particular bin. Alternatively, you may click the List box button to display all available bins in the selected warehouse; then, click the bin to select.

 

3.In the Adjust Quantity field, enter the quantity you want to deduct for this inventory item. Verify that the quantity in this field is preceded by a minus sign (-). Take note of the default system’s unit cost used in valuing the negative quantity adjustment. This unit cost will be the basis for computing the adjustment amount to reflect the actual unit cost of this negative quantity adjustment.

 

4.To save your adjustment, click the Save button in the function toolbar; otherwise, click Cancel to abort creating the adjustment transaction.

 

5.Access the Inventory Adjustment function again; then, select Total Cost Adjustment type and enter the same inventory item in the Item # field.

 

6.Manually compute the total adjustment amount to record the actual value of the negative quantity adjustment by comparing the system’s unit cost used in the previous recording of the negative quantity adjustment against the actual unit cost for this negative quantity adjustment. Multiply the resulting difference with the total quantity previously deducted from this inventory item.

 

7.To adjust the total value of this inventory item, enter the adjustment amount computed in Step #6 in the Cost Adjustment field.  If the adjustment is a deduction, verify that the adjustment amount in this field is preceded by a minus sign (-).  The system will automatically compute the new total value for this inventory item.

 

 

 

 

 

 

See Also

Create Inventory Record

 

 

 

 

 

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