Adjusting Cost for Usage

Overview

Use this job aid to adjust cost for usage. This job aid should be included in month-end procedures. Failure to complete the cost adjustment in a timely manner can result in an imbalance between the subsidiary and general ledger accounts for inventory and cost of sales

The Adjusting Cost For Usage procedure generates transaction type 0 records in the inventory activity file to balance with the inventory balance file. The differences usually occur as a result of decreasing the Quantity On-Hand below zero (shipping or manufacturing prior to receiving) and then increasing the on-hand back to positive (receiving goods) with a different unit cost. Cost adjustments may be either positive or negative, depending on beginning and ending values for the time period indicated. The transactions affect the ledger accounts assigned to the system account codes IV and CA in the Agris System Journal Interface when generating system journal entries for the period.

It is recommended that you have a backup or make a copy of your dataset before running this procedure. The cost adjustment should be run when no one is working in the inventory package.

To adjust cost for usage:

1. From the Toolbar, click INV for Inventory.
2. From the Inventory menu, select Inventory.
3. From the Inventory menu, select Cost Adjustment Procedure.
4. Select Adjust Cost for Usage.
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 usage., or click No to produce a report, that shows the entire inventory listing, regardless of adjustments.
8. At the Print Detail For Items Which Have An Adjustment?, click Yes.
9. In the Printer box, type the number associated to the place you want your report to print.
10. In the Print Type box, type the number associated to the characters per inch to print the report in.
11. In the Copies box, type the number of copies of the report you want to print.
12. 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.
13. Click OK.

Learn more about Cost Adjustment Procedures feature:

• Adjusting Cost for Usage
• Adjusting Cost for Market Value
• How to Back Out a Cost Adjustment
• What does * and E Mean in Cost Adjustment Column of Inventory Status Inquiry