Create a Value Adjustment

Value Adjustments are used to update the Issue Cost and Inventory Cost for each product in the transaction. Positive value adjustments increase these costs, while negative value adjustments decrease the costs. When creating a value adjustment, you can only adjust each product once, regardless of storage and/or lot assignments. Value adjustment functionality is only available to companies that use Average Cost accounting (not Last Price).

When a value adjustment is saved, the cost for each product on the transaction is updated using the following formula:

In other words, the total amount of the value adjustment is divided by the total quantity on hand.

Click HERE for detailed example.

The transaction will update the product's Issue Cost in all cases, and the Inventory Cost if there are no past, unposted periods at the location.

Entering a Value Adjustment:

1. From the Inventory menu, select Create Value Adjustment.
2. Enter an Adjustment Memo to provide details for the purpose of the adjustment (optional).
3. If necessary, use the Funnel (Filters) icon to apply filters prior to retrieving the product list.
4. Click Retrieve.
5. Enter the Adjustment Value for each product to be adjusted - this is the TOTAL value that will be added to the TOTAL quantity in inventory; do NOT enter a "per unit" value. <Pro Tip>: If entering values for multiple products before making other selections or changes, the Up Arrow & Down Arrow keys can be used to navigate in this column.
6. Select a Qualitative Judgment for each product adjusted. This allows the adjustment to be accounted for in the general ledger and it appears in the Adjustment Summary report.

• To apply the same judgment to multiple products, use the drop-down in the header row, check the box in the Paste column for the appropriate products, then click the Paste button in the header.
• To apply the same judgment to all products, check the Paste box in the header row and click the Paste button. When applying to all, this will only select those with an Adjustment Value <> 0.

7. To proceed, click Add Selected Products. The screen will be filtered to display only products with an Adjustment Value and a Qualitative Judgment.
8. When ready, click Save. A confirmation message will be displayed, giving users the option of viewing a printable version of the transaction. If not, skip to step 15.
9. To do this, click View Printable Adjustment.  To download and print a copy of the transaction, click the Printer (Export) icon.
10. When finished, click the Close button.

 

 

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