There are occasions when it may be necessary to adjust the cost of an

inventory item already recorded into inventory. For example, a cost may

have been initially entered, or calculated, incorrectly.

At one time, users with Supervisory rights could use the ?Fix? button in

Inventory Maintenance to adjust an item?s costs. However, it was

determined that using the 'Fix' button to make these changes caused outof-

balances in Inventory, and was not updating General Ledger, when

used incorrectly. Therefore the ?Fix? button was removed for version 4.05.

There is still a means of properly adjusting the costs associated with an

inventory item, outlined in the sections below for each Valua tion method:

Standard Cost:

Use an adjustment to bring the total quantity (for all warehouses) to 0 at

the current (incorrect) standard cost. This adjustment will bring the total

quantity and total value in inventory to 0. At that time, you can manually

change the standard cost within the Inventory Masterfile and adjust the

total quantity back in at the new standard cost. This transaction will

update General Ledger with the new inventory value.

Average Cost:

To change average cost, the total quantity in a ll warehouses must be

adjusted out at the current (incorrect) average cost. This adjustment will

reduce the inventory quantity and value to 0. Once the inventory has a $0

value, the same quantity can be adjusted back in at the correct average

cost. This transaction will update General Ledger with the new inventory

value.

LIFO, FIFO, Lot, and Serial

The negative and positive adjustments must be made to the same cost

tier (i.e. the receipt date and reference for LIFO/FIFO or lot/serial number

for lot/serial items) by clicking the distribute (?Distrib?) button on the

Transaction Entry Lines tab and distributing the quantities to the correct

cost tier. In other words, for a FIFO item, if the cost was incorrect on a

particular FIFO tier, the negative adjustment would be entered for the

quantity in that tier at the current (incorrect) cost and then distributed

back to that tier with the correct cost.