Inventory Adjustments can be used to increase or decrease the Unit Cost of an inventory item. First, create one adjustment to reduce the balance on hand to zero (using the current unit cost). After the balance on hand is reduced to zero, make another adjustment to increase the balance on hand back to the correct number of units using the new unit cost.
To access Inventory Adjustments form, go to Transactions and select Inventory Adjustments toward the bottom of the menu or select the link in the white area of the My Desktop Inventory module.
On the Inventory Adjustments form, start by entering an Adjustments (alpha-numeric up to 10 digits), followed by the Adjustments Date, and optionally a Description.
In the transaction grid, enter the associated GL Account and Item # followed by the negative quantity (Qty) with the old Unit Cost to zero out. If you have multiple inventory items to adjust, enter the information and save the transaction.
Now create a new Inventory Adjustment transaction with the updated quantities and new costs.
The new quantity on hand will appear on any number of Inventory reports while the revised cost will appear on the Inventory Items master record form and on the Extended Inventory File report as the Average Unit Cost.
Note: The Item’s “Price” is set on the Inventory Items master record form.
