Non-supported ReleaseNon-supported Release
ECI no longer supports this version of e-automate, and this version of the online help is no longer being updated. ECI recommends upgrading to the current release. Contact your account manager for more information.

Item Adjustments - Cost

The price for which you sell inventory items is determined by, among other things, your cost. The price at which you bought your inventory will have a direct effect on what the system automatically sells it for (unless you are using the pricing method that does not use cost as a component of price calculation).

If you are buying the inventory item for less, e-automate will sell it for less. You can manipulate how much e-automate values any given item by using the Adjust Inventory Costs activity.

Important: It is important to remember that the unit cost adjustment is applied differently to the items you select, depending on what you chose as your costing method (LIFO, FIFO, or WAVG) when you originally configured e-automate.

When adjusting items in inventory, e-automate adjusts the value of the inventory based on the account associated with the inventory item. This account is identified based on the inventory code assigned to the inventory item and the account linked to the inventory code. When adjusting inventory, e-automate can balance the adjustment general ledger entry by either using the account identified on the inventory adjustment code or the default inventory adjustment account identified in Inventory Administrative Options. For more information on the inventory adjustment code, see the Creating Inventory Adjustment Codes topic.

Getting to the TransactionGetting to the Transaction

From the Inventory menu, select Adjustments to open the Inventory Adjustments list window.

Click [New] to open the Inventory Adjustments – Adjust Cost detail window.

Basic InformationBasic Information

In the Type field, use the drop-down menu to select Cost.

In the Warehouse field, use the lookup icon to select the appropriate warehouse. This is the warehouse where the item will be increased, decreased or cost adjusted based on your type.

In the Adjustment code field, use the lookup to select the adjustment code that identifies the general ledger account for the adjustment.

Note: If you do not select an adjustment code, e-automate will use the adjustment account identified in administrative inventory options to balance the general ledger entry created.

In the Description field, enter the brief description of the reason for the cost adjustment.

In the Number field, leave the default number for the adjustment or enter another number.

In the Date field, leave today’s date or use the drop-down calendar to select the date the increase occurred.

Do one of the following:

To add an item to the Items grid using the QuickAdd functionality, do the following:

In the Item field, use the lookup icon to select the item for which the cost is to be adjusted.

In the Quantity field, enter the quantity of items that are being adjusted.

Note: The Quantity field is only available if the item is not serialized. If the item is serialized, the Quantity field displays a value of 1 and this value cannot be changed.

In the Unit cost field, enter the dollar amount of the cost adjustment per unit (positive for increases in cost and negative for decreases in cost). This is the amount the cost is changing, not the new cost. If you have an item that is currently valued at $100 and you want adjust the cost to $75, you would enter ($25) in the Unit cost field to reduce the value by $25.

Note: The dollar amount entered will be handled differently depending on the selected cost method:

Weighted Average: If you enter a quantity of ten and a cost adjustment of five dollars, fifty dollars will be spread out over the entire quantity of the item you selected.

FIFO: If you enter a quantity of ten and an adjustment of five dollars, five dollars will be added to the cost of the first ten of those items entered in your system.

LIFO: If you enter a quantity of ten and an adjustment of five dollars, five dollars will also be added to the cost of the last ten of those items entered in your system.

Click [QuickAdd] to add the item to the list of cost adjustments.

To add an item to the Items grid using the Add functionality, do the following:

Click [Add] to open the Add Inventory Cost Adjustments window.

Using the Add Inventory Cost Adjustments window, do the following:

In the Item field, use the lookup to select the item for which the cost is to be adjusted.

In the Serial number field, use the lookup to select the item's serial number if applicable.

Note: The system only enables this field if the item you selected is serialized.

Note: If the serial number you select identifies an equipment item, the system populates the Equipment field.

In the Equipment field, use the lookup to select the item's serial number if applicable.

Note: The system only enables this field if the item you selected is an equipment item.

Note: This selection applies if you are using serialized Equipment History Tracking and the item you are cost adjusting is considered by e-automate to be in stock.

Tip: If you select a serial number from the Serial number field that identifies an equipment item the system populates the Equipment field for you. If you know the equipment number and the equipment is serialized, you can also use the Equipment field's lookup to select the item and have the system populate the Serial number field for you.

In the Quantity field, enter the quantity of items that are being adjusted.

Note: The Quantity field is only available if the item is not serialized. If the item is serialized, the Quantity field displays a value of 1 and this value cannot be changed.

In the Unit cost adj. field, enter the dollar amount of the cost adjustment per unit (positive for increases in cost and negative for decreases in cost). This is the amount the cost is changing, not the new cost. If you have an item that is currently valued at $100 and you want adjust the cost to $75, you would enter ($25) in the Unit cost field to reduce the value by $25.

Note: The dollar amount entered will be handled differently depending on the selected cost method:

Weighted Average: If you enter a quantity of ten and a cost adjustment of five dollars, fifty dollars will be spread out over the entire quantity of the item you selected.

FIFO: If you enter a quantity of ten and an adjustment of five dollars, five dollars will be added to the cost of the first ten of those items entered in your system.

LIFO: If you enter a quantity of ten and an adjustment of five dollars, five dollars will also be added to the cost of the last ten of those items entered in your system.

In the Adjustment code field, make no change to keep the value displayed or use the lookup to select an adjustment code.

Note: If you do not select an adjustment code, e-automate will use the adjustment account identified in administrative inventory options to balance the general ledger entry created.

In the Inventory adjustment account field, use the lookup to select the cost of goods sold account to which the adjustment cost will be posted or make no change to use the account displayed.

In the Department field, use the lookup to select the department to which the adjustment cost will be posted, or make no change to use the department displayed.

If branching is enabled, in the Branch field, use the lookup to select the branch to which the adjustment cost will be posted, or make no change to use the branch displayed.

To adjust costs for a particular warehouse and bin, do any of the following:

Note: Depending upon the Item and Quantity you select, the system may populate the first row of the Destination bin distribution grid.

Note: The sum of the quantities of all rows listed in the Destination bin distribution grid must match the quantity listed in the Quantity field above the grid.

To add a quantity to the Destination bin distribution grid, do the following:

In the Warehouse field, use the lookup to select the warehouse where the quantity to be adjusted is located.

In the Bin field, use the lookup to select the bin where the quantity to be adjusted is located.

In the Quantity field, enter the quantity of this item being adjusted in this warehouse and bin.

Note: If the item is serialized, this will be set to 1 and the field will be disabled.

Click the [Add] button to add the quantity to the Destination bin distribution grid.

To edit a quantity displayed in the Destination bin distribution grid, do the following:

In the Destination bin distribution grid, select the row you want to update.

In the Warehouse field, use the lookup to select the warehouse where the quantity to be adjusted is located or make no change to keep the warehouse displayed.

In the Bin field, use the lookup to select the bin where the quantity to be adjusted is located or make no change to keep the bin displayed.

In the Quantity field, enter the quantity of this item being adjusted in this warehouse and bin.

Note: If the item is serialized, this will be set to 1 and the field will be disabled.

Click the [Update] button to update the selected row in the Destination bin distribution grid with this information.

To remove a row displayed in the Destination bin distribution grid, do the following:

In the Destination bin distribution grid, select the row you want to remove.

Click the [Remove] button to remove the row.

Click [OK] to save your cost adjustment settings and to close the Add Inventory Cost Adjustments window.

To edit an item displayed in the Items grid, do the following:

Select the row from the Items grid that you want to edit.

Click the [Edit] button to open the Edit Inventory Cost Adjustments window.

Using the steps listed above for adding an item to the Items grid using the Add functionality, make any changes you want to make.

Click [OK] to save your cost adjustment settings and to close the Edit Inventory Cost Adjustments window.

Repeat the necessary above steps to perform additional cost adjustments in the Inventory Adjustments window.

Completing the TransactionCompleting the Transaction

Click [OK] to adjust your identified costs and post your cost adjustments to the general ledger.