Friday, November 6, 2009

Using the Adjust Costs inventory Utility

Adjust Costs.

It looks like a simple enough tool and it does exactly what you tell it to do. However, read on, what it does may not be exactly what you want it to do. Here's what it does. Say you have a purchase receipt that went through the system at $1465. Several of the items were sold but now the inventory is obsolete and the powers that be task you to write it off. They still want the items in inventory in case they can sell them later, but the carrying value should be zero. No Prob! you say. You open up the adjust cost screen and take each of the receipts that have not been completely sod and adjust the cost to zero. A bunch of reports print, you check that your stock status shows zero and you think you are done.

Not so fast. When you make a cost adjustment to a receipt in the Adjust Cost window you are telling the system that the entire receipt had a bad cost, not just the items left over. Dynamics GP will go back and attempt to adjust the cost on the posted sales from this receipt to the new cost (in our case $0). You may not want that. If all you are trying to do is write the current inventory down to zero cost, make Inventory Transaction Entries. First, a negative entry which will pull the correct cost. This will give you your 'write off' journal entry. Next do an increase adjustment at $0.00 cost. Now you have written off exactly the inventory you want and the carrying value is zero.

You can go home fulfilled from a good writeoff :)

Until Next Post



Gijeet said...

Hello, very informative post. Can you please go into more detail regarding creating a negative entry first then an increase adj. Let's say I have 365 items I want to write off. Thanks.

Dynamics Confessor said...

To make the negative entry, simply open the item transaction entry window and then put a negative amount for the quantity. The system will pull the items actual cost according to your FIFO layers and reduce your inventory by that amount.
You then create a positive adjustment and enter the qty with whatever cost you want.
If you need to write off a bunch of items at once, the easiest way to do it is with a Stock Count Entry. Put the items in a stock count schedule, and then start the count. Go into stock count entry and then check all of the verify boxes with the qty of zero. The system will create an item transaction bringing the qty and cost to zero. You can then create a positive inventory adjustment to bring the quantity and cost up to the appropriate level.
If you have the correct cost in the current cost field on the item card, then you can just do another stock count with the new quantity.
I find that using the stock count schedules make this process much easier.
Hope this clears things up for you.
Kind regards,

Profit Consulting Group said...


I have a problem with the cost of inventory transfer . GP registers a cost transfer is not for the cost of entry . Why does this happen ?, As I can correct it?
In this example I record an assembly of a product costing GP $0.96 and I registered a record of transfer of inventory cost $117... Check the historical and could not find an entry document that originated this cost.
Document Date Document Number TRXLOCATION TOLOCATION QTY Unit Unit Cost
26/12/14 ASM0000042774 PROD 12,966.40 OZ 0.98
TR000064025 BONA PASA 880 OZ 0.93
TR000064027 BONA OPTI 6,848.00 OZ 0.93
TR000064028 BONA MALE 11,744.00 OZ 0.93
TR000064030 BONA BRAS 880 OZ 0.92
TR000064031 BONA HIGU 2,176.00 OZ 0.92
TR000064032 BONA PUCB 896 OZ 0.92
TR000064034 BONA AGMA 3,584.00 OZ 110.78
TR000064045 BONA JULU 1,328.00 OZ 117.57
TR000064060 BONA TRATTO 2,864.00 OZ 117.57
TR000064155 PROD BONA 11,546.88 OZ 0.98

Dynamics Confessor said...

I'm not sure what the question is. The only assembly transaction I see is for a cost of 98 cents. The qty is 12,966.40, but I don't see any correlation between that number and any of the other quantity numbers. In fact, nothing is showing a cost of .96. I would need more information or just remove all of the information that doesn't relate to the question.
Kind regards,

Anonymous said...

I have used the adjust cost function and have run into an issue where the -1 unit for that item number does not show up in the adjust cost screen. I have no ability to adjust cost for that item number. I double-check transaction edit list to ensure I have the correct item number, date, site, etc. and all is correct. Do you know why it is missing or how I can get the transaction entry to display in the adjust cost screen to adjust the cost?

thank you for your help!

Dynamics Confessor said...

You mentioned the transaction edit list instead of the posting journal. Has the transaction in fact been posted? Can you find it in inquiry? I'm not 100 percent sure I understand the question. It states "the -1 unit . . " What do you mean by -1 unit?
Kind regards,