Adjusting Cost for Market Value

Overview

Use this job aid to adjust cost for market value. Performing this job aid compares the values in the Average Unit Cost and Market Cost fields. Using the lower of the two fields, the value is recalculated and printed on the Inventory Value Adjustments To Market Value Report. The primary purpose for adjusting inventory to market cost is for general ledger reporting. A suggested method is to produce the report without creating transactions and then to make manual journal entries in LDG. These manual journal entries may be automatically reversed in the next journal period. With this method the Average Unit Cost field is unaffected at the subsidiary level. This procedure is normally used to “true-up” your inventory. You should make sure that the items you are updating have a value in the market value in item maintenance. A backup or copy of the dataset should be performed before running this procedure. Everyone will need to be out of the inventory package when this process is run.

To adjust cost for usage:

1. From the Toolbar, click Inventory.
2. From the Inventory menu, select Inventory.
3. From the Inventory menu, select Cost Adjustment Procedure.
4. Select Adjust Cost for Market.
5. Click OK.
6. Select Calculate Report, Update Files and Create Entries which performs all necessary calculations, prints a report, and creates transactions in the inventory transaction history file, or select Calculate Report, No Update or File Changes which performs all necessary calculations and prints a report. No transactions are created with this choice.
7. At the Print Only Items Which Have An Adjustment prompt, click Yes to produce a report that shows,only those inventory items which have (or would have if transactions are created) an adjustment for market., or click No to produce a report, that shows the entire inventory listing, regardless of adjustments.
8. In the Ledger Date box, the default date displays, if you want to change the date, type a new date.
9. In the Other Reference box, type a reference for the cost adjustment.
10. Click OK.
11. In the Beginning and Ending boxes, click Lookup or type * and press Enter, and then select the range you want to adjust, or type the beginning and ending range you want to adjust.
12. In the Item Type box, type 3 for Manufactured, 4 for Regular, or 5 for Grain Manufactured.
13. Click OK.
14. In the Printer box, type the number associated to the place you want your report to print.
15. In the Print Type box, type the number associated to the characters per inch to print the report in.
16. In the Copies box, type the number of copies of the report you want to print.
17. In the Pages From and To boxes, type the page number range you want to print the report for. Leave the boxes blank to print all pages.
18. Click OK.