Edit Financial Information

This page allows you to modify the financial information for an adjustment transaction. Tell me more

• Select  “Financial Information” link” at the bottom of the “Edit Adjustment.” page.

The “Edit Financial Information” page appears.

The system displays the following:

The system displays the following in the “Financial Information” multiline:

Note: For items with positive adjustment, adjustment value method must be set as “Blank”. For items having negative adjustment and costing method as standard cost, the adjustment value method is set as default. For all items having negative or zero quantity adjustment and costing method "LFL", adjustment value method combo must be set as “default” or "specify value”. For all items having negative or zero quantity adjustment and costing method "LIFO/FIFO", adjustment value method combo must be set as “default” or "specific receipts”. For all items having negative or zero quantity adjustment and costing method "WAR", adjustment value method combo must be set as “default”, “specific receipt” or "specify value”.

Note: For positive adjustments, adjustment value is the product of net adjustment quantity and standard cost. For negative adjustments with standard cost, the adjustment value is the product of adjustment qty. (negative) and standard cost. For zero quantity adjustment and costing method as standard cost, the adjustment value is set as zero. If the rate at which the positive adjustment for std. cost items is made is more or less than the std. cost of the item/variant, then the item variance account will be debited or credited accordingly.

• Enter the following in the “Financial Information” multiline if you need to modify the fields:

• Check  the “Select” column in the multiline for adjusting specific receipts.

• Click the “Update Financial Information” pushbutton to update the modified financial information of the adjustment transaction.

The system saves the adjustment value method, adjustment value and analysis/sub analysis codes for each account code.

The system sets the status of the transaction as “Active” in the following situations:

Serial number details are specified for all serially controlled items.

The adjustment value is specified for all items having positive adjustment when the system parameter “Allow modification of value during positive adjustments” is set as “No”.

The adjustment value is specified for all items having negative adjustment

The system parameter “Analysis/Sub analysis Code applicable” is set as “No”. If the parameter is set as “Yes”, then account codes must have been mapped to the analysis/ sub analysis codes.

For zero quantity adjustments, either serial number or value adjustment has been performed.

• Click the “Edit And Authorize Adjustment” to modify and authorize the adjustment transaction.

The system sets the transaction as “Authorized”

The system updates the stock maintenance for addition or reduction of stock quantity and value depending on whether the adjustment is positive or negative. The system updates the serial management if serial number adjustments are being made.

The system updates the stock value for the item/variant directly if the adjustment is only for the value and not the quantity, the costing method is WAR/LFL and adjustment value method is specify value. The system updates the stock value for the item/variant directly if the adjustment is only for the value and not the quantity, the costing method is WAR/LIFO/FIFO and adjustment value method is specify receipts.

The system updates the dispositionable quantity if the adjustment is positive or negative, the stock status is nettable and the item/variant is disposition controlled.

The system updates the status of the PI plan and CC sheet to “Closed” from “Authorized”.

• Click the “Delete Adjustment” pushbutton to delete the stock adjustment transaction

The system sets the status of the transaction as ”Deleted”.

The system deletes the details of the selected transaction and saves the login id of the user and the date of creation along with the modification details.

To proceed, carry out the following

• Select “Adjust Specific Receipts” link at the bottom of the page to select the receipt for adjustment of quantity and value from the list of receipts.

Edit Financial Information – An Overview

Stock correction is an ongoing process in inventory management usually carried out when there is difference between the system and physical stock quantities. In case of positive adjustment, the rate is defaulted with the standard cost of the item. The standard cost can be modified only if the parameter “Allow modification of value during positive adjustments” is set as “Yes”. If the costing method is Wtd. Average/LIFO/FIFO, then the value entered by the user is taken as the new value. If the costing method is standard cost and if the rate at which the adjustment is made is more or less than the standard cost of the item, then difference in amount will be posted to the item variance account.

If the item is lot controlled, then either a new lot can be created or items can be added to the existing lot. If the costing method is LFL, value of the new lot will be considered if items are added to a newly created lot. Else, the weighted average of the existing and new lot item quantities would be considered.

If the adjustment is negative and the system parameter “Allow negative adjustments for the pegged quantity of physical stock in disposition” is set as “No”, then all stock is available for adjustment, irrespective of whether it is dispositionable or not. Else, only the free physical stock can be adjusted. If the costing method is standard cost, then value cannot be specified. If the costing method is weighted average, then value can be specified in one among the following three methods:

4      Specify value – Indicates that the value needs to be specified by the user.

4      Specify receipts – Indicates that a number of receipts for the item/variant for a specific warehouse will be displayed with the receipt value and quantity. You can choose a particular receipt from the list and perform adjustments for the quantity.

4      Default – Indicates that the adjustment value will be the weighted average rate of the item/variant.

If the costing method is LFL, the two ways in which value can be adjusted are specify requests and default. If the valuation method if LIFO/FIFO, the two methods of adjusting the stock value are specify default and value. For the default option in LIFO, the value and quantity will be taken from the latest receipts followed by the earlier receipts in chronological order. For FIFO costing, the value and quantity are taken from the earliest receipts followed by the later receipts in chronological order.

In case of zero quantity or value adjustments, quantity cannot be adjusted and only value of the stock or serial numbers of stock can be corrected. This type of adjustment cannot be done for standard cost items, as the value adjustment must be performed through standard cost revaluation for such items. For other costing methods, the same procedure as for negative adjustment is followed.

This page will be deployed only if at least one of the items is not having positive adjustment and the parameter “Allow modification of value during positive adjustment” is set as “Yes”. Also, the “Analysis/Sub Analysis Code applicable” parameter must be set as “Yes” and account codes mapped to analysis/sub analysis codes. Else, the system will not launch the page and an error message gets displayed.

If the adjustment value is positive, the stock account is to be debited and adjustment account is to be credited. If the adjustment value is negative, the stock account is to be credited and adjustment account is to be debited.