Inventory Adjustment Affecting Product Unit Cost v14

Question

Hello,
I am using automated average costing. My understanding is that product cost should not change except if I made a new purchase and received it. However, the product cost changes after Inventory adjustment which to my knowledge should not affect the cost. Its affecting my COGS and inventory valuation. Also I noticed it only happens if the counted products are more than on-hand, when its the other way around the cost doesn't get affected. Also there hasn't been any journal entries or manual

Omar Afifi · Accepted Answer

I found the reason. I have multi-company activated. The adjustment was validated while on the top right 2 companies were chosen showing the name of the other company. I found every-time an adjustment was made with counted more than on-hand and the name showing on the top right is different from the name of the company on the adjustment the error occurs.
This might  be  probably due to standard price on the product template module changes according to company name shown at the top right even if m

Marc De Costa · Answer

Hi Omar,
If a product has a cost, then it will reflect on accounting when you are making an adjustment. If  you want to update the stock with zero valuation, then change the cost to zero and then make the inventory adjustment.

Yossef Elsherif · Answer

Hi Omar,
Do you mean Product Cost (on the product template)  or Product Total Cost?
The total cost will differ because you made an adjustment, but the unit cost will remain the same.
Also, you should get a Journal Entry since you are using Automated valuation.
Actually, never faced this issue and it should work very well on an an as-is database.

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