Inventory Adjustment

Purpose

From time to time you may have to update Integral Accounting records of your quantities of stocked items. You may need to account for theft, breakage, or miscounting of inventory. This form allows you do perform the adjustments.

 

Usage

1. Select Increase or Decrease

You can use this form either to increase amounts of an inventory item or to decrease them.

2. Enter a reason

You should always give a reason for the adjustment, so that you can later look back at the inventory journal and reconstruct your actions.

3. Select the items to be adjusted

Item ID - Either type the Item ID here or use the lookup to find the item you want to adjust.

Description - The description field is here for your reference, so you can see which item you are editing.

GL Account - This is the general ledger account to which the transaction will post.

Original Quantity - This column displays the current quantity of the item you have in stock.

Adjusted Quantity - Type the amount by which you wish to increase or decrease the item's quantity levels. This is not the new quantity of the item; rather, it is the amount by which you wish to change the item quantity.

Cost - To change the cost of the selected item, enter a new cost here. To leave the cost unchanged, leave this column blank. An inventory Increase pulls from Last cost, while an inventory Decrease pulls information from Average cost. You cannot change the Cost on an inventory Decrease.

Project ID - If this adjustment transaction was required because of some project or other, select that project in this column.

At the bottom of the screen you will see two fields, one for Total Quantities and the other for Total Amount. Total Quantities is calculated by adding up all quantity changes in the grid. This field represents the net change in quantity of all items indicated in the grid. Total Amount is calculated by summing the Cost column multiplied by the Adjusted Quantity column, and thus represents the total change in inventory value, i.e. the total amount of money your accounts are gaining or losing as a result of this inventory transaction.

4. Post

When you are finished entering items and adjusted quantities and costs, click the Post button to update the accounting system with the results of the transaction. Later you can call up this adjustment transaction by typing its number into the Document Number field, or by using the lookup.