V9 - Adding and editing adjustments

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If you are confident that the transaction history is correct and your count is off, you can use an adjustment to correct a discrepancy. Here is what you need to do:

 

1. Either of the following methods can be used to create a new adjustment transaction.
   1. The Quick add (add_circle) menu. On the Task bar, go to Quick add > Inventory > Adjustment.
   2. The Adjustments list. Go to Operations > Inventory > Adjustments, then select +Add.

 

A blank adjustment page will appear: 


 

2. Enter or edit the data as needed for the adjustment, referring to Adjustment transaction field descriptions for help. Note the following as you complete the transaction:
   1. Adjustment reference #.
      1. If your company has enabled the Adjustment numbering setting (Tools & settings > Inventory > Adjustments > Adjustment numbering), you can leave this field blank. The system will assign (or did assign, if the transaction was generated by the system) a reference number when the transaction is saved.
      2. If your company has not enabled Adjustment numbering, or you want a different adjustment reference number, manually enter a reference number.
   2. Select the Location to be affected by the adjustment from the dropdown.
   3. Enter each of your line items into the adjustment.
      1. In the Items dropdown, select an existing item or Add new item.
         1. If adding a new item, a pop-up window will appear with an Item edit page.
            1. Refer to Defining, adding and editing items and Item field descriptions for information about completing the item definition.
            2. Save and close the Item edit page when finished.
            3. SOS will return to the adjustment and add the new line item.
         2. Any item entered into the adjustment will include all relevant information retrieved from the item definition. Columns displayed are set and may include additional columns, based on your settings. You can edit these fields, except where grayed out.
         3. If any items are bin-, serial-, and/or lot-tracked, designate their bins/serials/lots.
            1. For bins, refer to Using bin-tracked items on transactions if needed.
            2. Serial inventory can only be decreased on an adjustment. Refer to Using existing serial numbers on transactions if needed.
            3. If the item is lot-tracked, choose the appropriate lot from the dropdown in the Description field.
               1. If you are adjusting more than one lot of the same lot-tracked item, each lot must be entered as a separate line item.
               2. If the lot does not already exist in SOS Inventory, you must create a lot before you can use it on an adjustment transaction.
         4. If you are adjusting by:
            1. Quantity. Enter either the New quantity or Adjust qty by value.
               1. SOS Inventory will automatically populate the other field.
               2. Use a negative number (e.g., -2) if you enter a decrease in the Adjust qty field.
               3. If the item is lot-tracked, the New quantity field will reflect the change in quantity for the lot you selected in the Description field.
               4. If you tab over to the Adjust cost basis by field, the system will display a suggested cost adjustment based on the change in quantity. You may edit the suggested cost if desired.
                  1. If the quantity adjustment is positive (an increase), the suggested cost is the quantity multiplied by the purchase cost in the item definition or the bill of materials cost, if the item being adjusted is an assembly.
                  2. If the quantity adjustment is negative (a decrease), the suggested cost is the cost basis using the chosen valuation method (FIFO, Weighted average, or LIFO).
            2. Cost basis, but not quantity. In some instances (such as for depreciation), you may need to adjust the cost basis but not the quantity.
                
               edit_noteNOTE: The value that you are adjusting only affects the last item in the valuation queue. For example, if I currently had a quantity of 10 of Item A for $8.00 each, and I increased the value of that item by $10.00, only the last item in the sequence will increase--in this case, to $18.00. The other nine to come out of the system will remain at $8.00.
                
         5. If you use units of measure for the item, select the appropriate one in the UOM field. The system will calculate the change in quantity by the unit of measure ratio defined for the item and change the cost basis accordingly.
      2. Repeat Step 2.c.i. and its sub-steps for each line item.
   4. In the Account field, select the appropriate inventory adjustment account from the dropdown. 
      1. The most common account used for inventory adjustments is Inventory Shrinkage.
      2. When adding new items to a new or an existing QuickBooks Online account, you can use Opening balance equity as the adjustment account.
   5. Complete other data fields as needed, then save the transaction.
       
3. Upon saving the adjustment, SOS Inventory will do the following:
   1. Add the adjustment to the Adjustment list.
   2. Create a journal entry and add it to the Sync queue to send to QuickBooks Online.
      1. For each item with an increase in quantity, a debit is posted to the item's inventory asset account. A credit is posted to the adjustment account you selected on the adjustment transaction.
      2. For each item with a decrease in quantity, a credit is posted to the item's inventory asset account. A debit is posted to the adjustment account you selected on the adjustment transaction.
          

Editing an existing adjustment

An existing adjustment can be opened for viewing or editing by selecting its transaction reference number link in the Ref # column. You will need to enable editing line by line to make changes to the adjustment if you use Transaction edit mode.

 

Be sure to save any changes you make.