Item: "FIFO product"
The item used in the example has the following characteristics:
  • Item model group: stocked item, post physical, don't include physical value
  • Storage dimension group: Site tracked financially
  • Tracking dimension group: No financial tracking
There are the following quantity and cost amounts on the transactions:
The inventory is being closed 30/9 2015. The items included in the inventory close is marked with yellow. Average cost price for the yellow marked transactions is calculated below.
Inventory value adjustment - On-hand
After the inventory has been closed, the on-hand quantity at the inventory closing date can be adjusted. Go to Inventory management > Periodic > Inventory closing and adjustment. Select menu item Adjustment > On-hand.
Select menu item "Select" to select items on-hand 30/9 2015 where cost amount must be adjusted.
Select menu item "Select". "Fifo product" is only tracked financial per Site and all transactions is posted on Site 1. Therefore no "Adjustment per" is selected.
Set up filter to select the relevant items and inventory dimensions.
Press OK.
The selected items is displayed in the form.
Select Adjustment > Item cost price.
When Item cost price is selected, the Price from the item is used.
The On-hand inventory amount is adjusted to the Price on the item and the total adjustment amount is displayed in the column "Edit now". Post the journal.
The transactions affected by the value adjustment is the once not settled and posted in the period closed.
Inventory value adjustment – Transactions
Transactions with status Purchase – Receipt can be adjusted via the menu item Adjustment > Transactions.
It is possible to adjust financially closed transactions!
When the Purchased items closed 30/9 2015 is adjusted, the Financially closed date is removed. The issue closed 30/9 2015 keep the financially closed date.
The adjustment is made 23/12 2015. The Purchased receipts missing the financially closed date, will get a financially closed date when the inventory is closed with a date on or after the adjustment date.
It cannot be recommended adjusting inventory value for a period inventory closed for transactions financially closed, but only adjust On-hand inventory at closing date and transactions dated after inventory closing date.
Inventory value adjustment - Five methods
The inventory value can be adjusted after the following five methods according -
 


1. Item cost price – Adjusts the cost price to the item cost price for an individual item. The item cost price is specified in the Price field in the Released product details form. In the example below the price in the Price field is 222,00. The amount in the column "Edit now" show the amount that the inventory cost amount will be adjusted with when the journal is posted.  
2. Fixed cost price – Using the Price field, you can specify any cost price. This price is not checked against other prices that have been used for the item. In the example below the Fixed cost price is 250,00.
3. Amount – Enter an amount to adjust by. This amount is allocated among all on-hand inventories according to the selected allocation principle and will be the total of the Edit now column in the on-hand journal. If you select Value as the principle, the amount is allocated proportionally according to the values of the on-hand inventories. If you select Quantity as the principle, the amount is allocated proportionally based on the quantity of the on-hand inventory. In the example below the Amount is 2.000,00.
4. Value – Specify a value to adjust to. The value entered will be the total of the new posted value found in the journal of the on-hand transaction. The value is allocated to all transactions according to the selected allocation principle. If you select Value as the principle, the amount is allocated proportionally according to the value of the transactions. If you select Quantity as the principle, the amount is allocated proportionally according to the transactions' quantity. In the example below the Value is 2.000,00.
5. Percent – You can adjust by any percentage. All on-hand inventories are adjusted to the cost price that is assigned to them, plus the given percentage. Select whether the adjustment should be made based on positive on-hand inventory or the on-hand inventory total, where any negative on-hand inventories are calculated in the basis. In the example below the Percentage is 90.