Adjust Cost of Inventory Item

You can adjust the cost of an item in inventory without affecting its quantity or the value of your Inventory Asset Account by using the Inventory Adjustments window. Before you make any changes, however, you will need to make a few calculations using the Items List (Summary) Report.

• Choose Index to Reports from the Reports menu. Select Items List (Summary) report in list and click Display. This report shows all items with their primary vendors, quantities, total values, costs and selling prices. Multiply the on hand quantity of the item you want to adjust by the item’s new cost. This will give you a new total value for that item. The difference between the new total value and the total value displayed on the report is the amount of the adjustment.

• If you needed to change the unit cost of Widgets to $15 each without changing the quantity on hand or the value of your Inventory Asset Account, you would make the following calculations first:

a. $15×10 units on hand = $150.
b. $150 (new total value) – $100 (current total value) = $50 adjustment amount.

• Click the Inventory Adjustments button in the Inventory Command Center. In the Inventory Adjustments window, enter the item number of the item whose cost you are adjusting.

Warning: Do not enter the item quantity or the unit cost. The Unit Cost will automatically display the current cost for the item but do not change it.

• Enter the adjustment amount you have calculated in the Amount column. If you are reducing the cost, enter the adjustment amount as a negative amount.

• Enter the allocation account number (where your adjustment will be applied) in the Account column.

Note: If you are setting up inventory and the balance of your Inventory account is correct, but you have entered an incorrect cost or no cost at all, enter the asset account that is assigned to the item you are adjusting (this account is assigned to the item in the Asset Account for Item Inventory field of the Item Information window). The adjustment will be applied to that account without changing the balance of the Inventory account.

• Click Record.

• Display the Items List (Summary) Report again to verify the information.

Warning: Prior to Plus 12/AccountEdge 3, inventory adjustments could not be changed or deleted. If you need to make a correction in software versions prior to these, make a new inventory adjustment using opposite amounts.