Non-supported ReleaseNon-supported Release
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Creating Inventory Adjustment Codes

An inventory adjustment code is assigned when you create a physical inventory count sheet. When you record counts and post inventory adjustments upon completion of the physical inventory, e-automate can post to two accounts. One is the inventory account on the item’s inventory code and the other is typically a cost of goods sold account identified on the count sheet’s inventory adjustment code.

When setting up your database, you may create a default adjustment code. If you have a default adjustment code, your administrator typically assigns the appropriate cost of goods sold account.

The inventory adjustment code can also tell e-automate which department to associate general ledger entries that occur as a result of inventory shrink or gain. If you are departmentalizing your income statement, you can identify a specific department to post these entries. Or, you can also configure the adjustment code to select the department associated with the inventory item’s inventory code.

In addition to using the inventory adjustment code during physical inventory, you can also create and use inventory adjustment codes during inventory increases, decreases, and cost adjustments. This is convenient because you do not have to drill down to the detail level on adjustments to identify a different general ledger account. The inventory adjustment code can be identified at the main window level on increases, decreases and costs adjustments.

Getting to the TransactionGetting to the Transaction

From the Tools menu, select Lists and Codes to open the Lists and Codes window.

In the Select a list or code type field, use the drop-down menu to select Inventory Adjustment Codes.

Click [New] to open the New Adjustment Code window.

Note: You can also get to the New Adjustment Code window from the New Physical Inventory List (creating a count sheet) window, Adjustment code field drop-down menu, as well as from the Inventory Adjustments window, Adjustment code field using the drop-down menu.

Basic InformationBasic Information

In the Adjustment code field, enter the designation for the inventory adjustment code.

In the Description field, enter a brief description of the inventory adjustment code.

Do ONE of the following:

To use the item’s inventory code adjustment account, select Use the item inventory code adjustment account.

To use an account other than the item’s inventory code adjustment account, do the following:

Select Override using this adjustment account.

In the Override using this adjustment account field, use the lookup to select the adjustment account.

Do ONE of the following:

To use the item inventory code’s department, select Use the item inventory code department.

To use a physical inventory adjustment department other than the inventory code’s adjustment account, do the following:

Select the Override using this department radio button.

In the Override using this department field, use the lookup to select the department.

Completing the TransactionCompleting the Transaction

Click [OK] to save the inventory adjustment code.