It may be necessary to adjust the unit cost information for items that have been previously received. Use the following procedure to adjust the cost of items in stock.
To adjust cost of previous receipts

1 On the Inventory Management Main menu, click Transaction Entry.

2 At the Transaction Type field, select Adjustments.

3 Click the Lines tab. You must enter two adjustment lines per item. Each line on the receipt being adjusted will be for the original quantity received. On the first line, enter the receipt quantity as a negative number at the Quantity field and the old cost amount as a positive number at the Unit Cost field. Enter the same quantity on the second line as a positive number and the new cost as a positive number.

4 Print and update the Transaction Journal and the Daily Transaction Register to update the Inventory general ledger account using the new unit cost information.

NOTE For average cost items, a new average cost is calculated based on the new unit cost information. To change the item's unit cost to a specific dollar amount, you must first adjust all quantities on hand by entering the negative amount on hand and old cost amount. You can then make another entry with the positive quantity on hand and the new unit cost amount.

For LIFO/FIFO or lot/serial items, you must make both the negative and positive adjustments to the same cost tier (the receipt date and reference for LIFO/FIFO or lot serial number for lot/serial items) by clicking Distrib on the Transaction Entry Lines tab and distributing the quantities to the correct cost tier. The unit cost for the negative adjustment is set to the old unit cost. The unit cost entered for a positive adjustment is used to calculate a new unit cost for the cost tier based on the weighted average of the old unit cost and the new cost. In addition, for serial items, you must first update the negative adjustment before entering the positive adjustment. For the other valuation methods, the negative adjustment and positive adjustment can be made during the same update.

For standard cost items, you can also change the standard cost using Inventory Maintenance or Automatic Cost/Price Change; however, changes made using these tasks will not affect the Inventory general ledger account.