Overview
The Inventory Unit Cost Adjust transaction can be used to either increase or decrease the Inventory Unit Cost of an item within a Weighted Average Cost Division. When Project Control is active within the Division, the adjustment transaction is recorded at the Project level.
NOTE This function is not available when the Cost Method within the Division is set to Standard Cost.
When an adjustment is processed, the change in Inventory value will apply to the item quantities within the Project (if Project control is active) or all item quantities within the Division (if Project Control is not active).
It is important to choose the correct Project when processing an adjustment when Project Control is active.
Financial journals are triggered when the adjustment is processed (visible in the Cost Transaction record - as detailed below) to ensure the General Ledger is updated with the change in value.
Application
This transaction is used when the Inventory Valuation for an item needs to be adjusted.
Financial Transactions – Sub-Ledger Accounts
Increase in Unit Cost:
- Debit: Inventory Sub-Ledger Account
- Credit: Inventory Adjustment Sub-Ledger Account
Decrease in Unit Cost:
- Debit: Inventory Adjustment Sub-Ledger Account
- Credit: Inventory Sub-Ledger Account
The inventory and inventory adjustment accounts are sourced from the Item’s assigned commodity code or from the Inventory Item Master record if an account override has been entered.
Navigation
Inventory Unit Cost Adjust
Fields
Division: Division is set to the current division of the user and cannot be changed directly in this process. To create a transaction in another division, the user can use the Quick Menu option, or update the current division on the Manufacturing User record in System Setup. Only inventory within this division will be displayed.
Item No: Enter the Item number for the item to be adjusted (required).
Item Source: Defaults to the Inventory Source as defined on the Engineering Item Master record for the Item being adjusted (Purchased/Manufactured/Subcontract).
Project: When project control is active within the division, select a Project ID to view inventory for a specific project. If project control is not active, the filter is not selectable.
Adjust Inventory Costs: Clicking this button will process all changes as defined.
Inventory Offset Account: Defaults to the Sub-Ledger account defined on the Commodity Code or the Inventory Item Master record. The default value can be overridden to any Sub-Ledger account that appears in the drop-down picklist.
Edit Average Unit Cost Section: Enter the New Average Unit Costs for each element (Material/Labor/Material OHD/Labor OHD/Fringe OHD) as required.
Results
Navigation: Inventory Transactions > Cost Transaction Query
Use the Cost Transaction Query to confirm / review the transaction just processed.
Fields
Item Number: Enter an item number to view cost transactions for just one item - leave blank for all items.
Start Date (Required): Select/Enter start date.
End Date (Optional): Select/Enter and end date.
Transaction ID:
- Increase in Unit Cost: INVDOLADJ-DOLINCR
- Decrease in Unit Cost: INVDOLADJ-DOLDECR
Select 'Submit' Button to view all transactions that were processed based on the filter criteria set in the Cost Transaction query header.
SEE ALSO
