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 Several of the items were sold but now the inventory is obsolete and the powers that be task you to write it off.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 :)

UPDATE! I read a post on the GP Forum the other day that was posted by fellow MVP Mahmoud M. AlSaadi  where he provided an excellent explanation of how the Adjust Cost Utility worked. I've modified the post only slightly, but this is what it told us.
The Inventory Adjust Cost Utility primarily does the following;
· Update the (UNITCOST) field  in IV10200 | Inventory Purchase Receipts Work. (The old Unit Cost will be reserved under ADJUNITCOST field ) 
· Since the purchase receipt within the IV10200 is linked to the Inventory Purchase Receipts Detail, these cost layers will be updated accordingly.
· A new Cost Adjustment Record is written to the HITB | Historical Inventory Trial Balance either to decrease or increase the cost.
· A Corresponding Journal Entry to adjust the Purchase Receipt Cost in General Ledger is created. That Journal Entry is linked to the cost adjustment record in the HITB
· No changes at all to the IV30300 | Transaction Amounts History
In summary, if you have received and invoiced the items, but the cost is not correct and needs to be adjusted, the best way is to correct this is to use the "Adjust Cost Utility". If the cost had been corrected through the Enter/Match invoice transaction, then the cost adjustment record and all of the corrections mentioned above would have been applied. However, if the invoice cost was not corrected at the time of invoicing, the Adjust Cost Utility is your answer for fixing it.

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,

Unknown 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,

Jon Colesby said...

Here is a question/insight that I came across on this and wanted to make sure I did not miss something. If you have an item at multiple locations do you really need to press process after each one? If you leave the item number and change the location, the distribution accounts only take into the account the first item... at least that is what my testing has shown.

Any/all insight into this would be appreciated.


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,

Jothi krishna said...

Hi Leslie,

Thank you for this wonderful post.

I transferred the Inventory from one company to another using the Stock Count entries as you suggested. Thank you very much for that! But, looks there is a Bug that the Variance transactions created by Stock Count entries had Unit Cost as 0 on all the items. I didn't realize that, and used it as Source and Created Adjustment Entry on the Target company. Now, before I fix the Unit Cost on the Adjustment entries(about 70 transactions(created per Item Class) with >15K items), User has posted almost all the transactions and it causes issues when creating any Project Inventory transfer. The reason is, it created IV Purchase Receipts with $0 unit cost for the Adjustment entries.

How do I fix all the Items to have correct Unit cost. Using the above utility would be a difficult task as there are >15K items. You invaluable suggestion would be greatly appreciated as always.

Thank you!


Dynamics Confessor said...

The transaction edit list will not show a cost, but the transaction posting journal should. If you reprint the posting journal via Inventory | Reports | Posting Journals and then reprint the Transaction Journal it should have costs on it. Given the size of the transaction, looking in the tables would likely be more efficient. The information is stored in the Inventory Transaction Batch History [IV30100], Inventory Transaction History [IV30200] and Inventory Transaction Amounts History[IV30300]. Also if serial or lot numbers are involved, you'd need to look at those history tables.
Kind regards,

Jothi krishna said...

Hi Leslie,

It's weird, but in our case, The Transaction Edit list was showing the correct Cost( Since I've updated the Cost directly on Items after those Adj transactions were posted with $0 unit cost), but Posting Journal had $0 unit cost Since the Inventory Purchase Receipt entry has Unit cost $0.

I just want to mass update all the Items to have the Correct Unit cost.


Dynamics Confessor said...

Hi Jothikrishna,
This is weird. The Transaction posting journal on the original, source company should have item cost. If it doesn't, you'll have to compute the cost from the source company Purchase Receipts. If you used the IV10301 table as your source for the IV transaction in the new company, the item cost would be zero. However, if you posted that transaction in the old company, the item cost would be populated in the IV30300. I think you may consider reversing the original zero cost entry and then entering it again using the IV30300 table as your source.
Will that work? What table from which company did you use for your source?
Kind regards,

Lori said...

I have a situation where our Inventory Quantity on the Stock status is correct for QTY but the overall cost needs to be written down.

Here is an example:
Qty Rec Receipt # Qty Sold Date of Receipt Cost note****
40.140 RCT 00000004770 34.386 8/9/2016 538.00 remainder sold in Sep16
1.0 RCT 00000004770 0.0 8/9/2016 538.00 sold in Sep16
2.70 RCT 00000004770 0.0 8/24/2016 543.00 sold in Sep16
23.011 RCT 00000004770 0.0 8/31/2016 670.00 sold in Sep16
August 31st is our year end and our GL Inventory has been adjusted to $17,628.50 (32.645 X 543.00).
What I need to do is have this report show that the cost for the remainder of the units to be relieved from Inventory will be at a cost of 543.00 and perform that calculation when sold.

I also need the Historical Cost or Any stock status report to show me the same value of 32.645 qty at a total value of $17,628.50.

The other kicker is we went live on GP from an existing system (feb 22/16) and our GL and this report have never from day 1 matched so would like to have it match now so we can reconcile our inventory monthly. We have spent so much man hours and money trying to figure this system out so if anyone can help that would be greatly appreciated.

Unknown said...

Hello Leslie,

I'm new to great plains dynamics and I posted voids with April dates that were invoiced in February. What is the simplest solution to fix these incorrect voids?

Thank you for your time!

Dynamics Confessor said...

What module did you void things in?