[Amber Schmoll]

Is there a way to update the inventory value without changing the quantity or posting to the GL? We tried turning off the posting by going to Admin/Setup/Posting for transaction entry but this did not allow us to update the value, only the quantity. Our GL isn’t matching to our Detailed Historical Stock Status Report in GP. Thanks!

——————————
Amber Schmoll
Senior Accountant
Milk Source LLC
Kaukauna WI
——————————

[Matthew Arp]

Amber the value of inventory is directly related to the quantity, reducing the quantity (or increasing) impacts the Sub-Ledger (Inventory) value. So you can’t simply adjust the inventory value as a whole, you either do it at the GL so that it matches the SL, or you update the SL with adjustments to quantity or cost. I would strongly recommend reaching out to your GP partner so they can investigate and get a clear picture on exactly what’s going on. If you really needed to adjust your inventory without impacting the GL, you’d want to setup your inventory transaction to stop at the GL (not post -through), then once you adjusted the quantity, you’d delete the GL entry that gets created. Or you could always just do your adjustment as normal then just switch your Adjustment Distribution to be the same as your inventory account.

On a side note, if you need to adjust the cost of a particular item, that is also an option under Inventory > Utilities > Adjust Costs. This would of course impact the GL as well, unless you followed either steps from above.

——————————
Matthew Arp
Business Systems Developer
Hunton Group
Houston TX
——————————
——————————————-

[Leslie Vail]

DANGER DANGER Will Robinson (think Lost in Space)
The Adjust cost utility does not just adjust the carrying value of what you have in inventory, it adjusts the cost of ALL of that item that was received in that layer. It changes the historical cost of things already sold. I posted an article my blog a while back that specifically addresses the Adjust Cost utility:
Using the Adjust Costs inventory Utility

Dynamicsconfessions		remove preview
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. View this on Dynamicsconfessions >

——————————
Leslie Vail
Accounting Systems Consulting, Inc.
Dallas TX
——————————
——————————————-

[Joe Scheidecker]

Hi Leslie,
Thanks for this post. The adjust costs transaction has proven very useful for us but it’s certainly not without it’s challenges as you laid out very nicely.

One thing to note, the “Adjust out, adjust in” strategy will work if you want to get around the messiness with adjusting costs on sold items, however, if you are tracking the age of your inventory, you will lose that if you adjust items out and back in. You may have aged inventory you adjust out, and when you adjust it back in to fix the cost, it becomes brand new inventory as far as GP is concerned.

Might not be an issue for many, but aged inventory is something we track closely and prevented us from using adjustment transactions to write down inventory costs.

——————————
Joe Scheidecker
Senior Financial Reporting & Analysis Specialist
Tenacious Holdings, Inc. (Ergodyne)
St. Paul MN
——————————
——————————————-

[Sandra Dodge]

Amber:

Matthew points you to the Utility to adjust cost.  This will work.  

You can also create an Inventory Transaction assigned to a batch and from the batch window you will uncheck the Post to GL box.  That allows you to make Inventory adjustments with no GL impact.  

You can go to setup>Posting>Posting and choose to Post your inventory TO the GL but not THRU the GL.  This will allow you to perform the step Matthew is suggesting to delete the Batch after inventory post but before GL impact.

It is actually normal to need to adjust the GL occasionally for Inventory.  When it’s not a material impact my Inventory manager will keep a spreadsheet of the items that are slightly off until they build up enough to warrant a larger adjustment.

Good Luck,
Sandra

——————————
Sandra Dodge
Iridium
Gilbert AZ
——————————
——————————————-

[Matthew Arp]

Sandra, out of curiosity what valuation method do you use?

——————————
Matthew Arp
Business Systems Developer
Hunton Group
Houston TX
——————————
——————————————-