Update a Product Cost

(Manual Cost Adjustment)

Access

Use this option to manually adjust costs.  Products may require manual adjustments in the following situations:

• An average cost was not specified during initial product entry.

• After-the-fact cost adjustments are necessary due to vendor adjustments (for damages, credits, etc.).

Manual cost adjustments affect inventory calculations only.  The system overwrites the cost associated with the inventory layer An inventory level assigned to items whenever they are received into the system, whether by PO receiving, customer return memo completion, or inventory adjustment. The system assigns the same layer number to items received at the same time and at the same price. applied to the product when the particular piece or pieces were received into inventory.  The system uses inventory layer costs to determine a product's average cost.  

For example, if you receive five pieces in at $100 each, the average cost is $100, and the system applies that average when calculating the average cost for all items in your receiving history for that product.  However, if you subsequently receive notice from the vendor that the five items are slightly defective and you negotiate a price of $50 per piece, you can use this routine to enter the cost adjustment. The result is that the system applies a $50 average cost for the five items when calculating the average cost for all items in your receiving history for that product.   

 To enter cost exception adjustments, use the Correct a Cost Exception routine.

This program displays the layers of the costing table. These layers are created through each transaction and can contain multiple quantities per layer. For example, you can create a purchase order receipt as one layer with a quantity of five, and create a merchandise return as another layer with a quantity of one.

Product CodeEnter the code of the product for which you want to enter manual cost adjustments. If you click on the Search button, you access the Search for a Product window, from which you can create a list of products to include in the report. If you click on the Action button An outlet to additional routines and functions. Identified by a blue button with a white ellipsis, Action buttons appear next to fields., you access the Multiple Product Selection Window, from which can select one or more products from a list. If you leave the field blank, you select all products.
 

Trans DateEnter the date of the cost adjustment transaction. Today's date defaults.

CommentUse this to enter comments (if any) about the cost adjustment.

Replacement Cost

Average CostThe current average cost of the selected product displays. Adjusting the cost of a layer An inventory level assigned to items whenever they are received into the system, whether by PO receiving, customer return memo completion, or inventory adjustment. The system assigns the same layer number to items received at the same time and at the same price. recalculates the average cost.

VendorOnce you select a product to adjust, the vendor code and name display.

LayerSelect the costing layer An inventory level assigned to items whenever they are received into the system, whether by PO receiving, customer return memo completion, or inventory adjustment. The system assigns the same layer number to items received at the same time and at the same price. you want to adjust.

MaterialThe current layer cost appears in this field. Enter the new cost for the selected layer. Adjusting the cost of a layer also recalculates the average cost.  

C.O.M.This field is active only for special-order products.

Total MaterialThe total material costs display.

QuantityThis is the quantity of the selected product and selected costing layer for which the cost is to be adjusted. The current quantity-on-hand displays.  You can apply the new cost amount to all pieces in the selected layer, or you can split the costing layer.  To split the selected line item, enter the quantity to be moved to the new layer. The Split Layer Selection Window displays, where you can select the pieces to which you want to apply the new cost amount.

FreightThis field is active only if the cost is active and the Landed Cost Allocation field on the Costing Control Settings is set to Allocate Upon Receipt.

Total LandedThe total landed costs display.

The labels (if any) for the following four add-on cost fields are established in the Costing Control Settings. These fields are active only if the cost is active and the Landed Cost Allocation field on the Costing Control Settings is set to Allocate Upon Receipt.

Add-On 1Enter add-on cost 1.

Add-On 2Enter add-on cost 2.

Add-On 3Enter add-on cost 3.

Add-On 4Enter add-on cost 4.

 In cases where Exact Add-On Costing is active, you must make General Ledger postings for manual changes to add-on and freight costs.