Adding a Cost Adjustment

1. When you first enter the Cost Adjustment option a Select A Cost Adjustment window will appear with the following options:

• EXIT – Select EXIT to exit the Cost Adjustment option and return to the Ledger menu.
• ADD ADJUSTMENT ID – Select ADD to add a cost adjustment.
• PRINT LIST – Select PRINT LIST to print a list of cost adjustments.
• A list of cost adjustments defined in the system.

Scroll to ADD ADJUSTMENT ID and press Enter to select.

2. Determine the type of adjustment you are defining:

Adjustment types include:

• Inventory Adjustments – Reason types for making adjustments to the quantity and/or value of the inventory such as count adjustments, cost adjustments, return to vendor, etc.
• Production Costs – Department-related costs that need to be added to the finished goods cost on work orders (i.e., labor, packaging, variable overhead, fixed overhead, etc.).
• Sales Pricing Adjustments – Types of expenses that should be deducted from or added to the invoice value, such as additional packaging/labor cost, freight, commissions, etc.
• Value Added Costs – Costs, including pad costs, which need to be added to incoming purchase orders, and product transfers (i.e., freight, unloading, warehouse/storage charges, pad, etc.).

Scroll to the appropriate adjustment type and press Enter to select. Or, select EXIT to exit and return to the Select A Cost Adjustment window.

3. At the Cost Adjustment field enter a unique alphanumeric Cost Adjustment identifier up to two digits in length.

4. Enter a cost adjustment description in the Cost Adjustment Name field.

5. Enter the account and cost center that the cost adjustment should be posted to when this cost adjustment is applied.

Note: Press F3 to display a Select An Account window from which you can select an appropriate account. Press F3 a second time to display a Select A Cost Center window and choose from a list of cost centers.

For Inventory Adjustments:

6. Unless you wish to add another adjustment, select the Exit command option to return to the menu.

For Production Cost Adjustments:

6. In the Adjust to Actual field determine whether to override production standard costs with actual cost when closing a work order (Y = Using, N = Not Using).

 

7. Unless you wish to add another adjustment, select the Exit command option to return to the menu.

For Sales Cost Adjustments:

6. Select the type of adjustment:. This will indicate the type of sales accrual.

Note: All fields are required.

• If Freight, you will be asked to identify which kind of freight.
• Air
• Ground
• Next Day
  • Next Day Freight - Select the next day service type from the from the drop down box
• Ocean
• Other
• Broker Commissions
• Sales Commissions
• Tax
• Other

 

7. Designate an optional Sales Adjustment Group. This allows you to establish groupings for sales type cost adjustments and effects the order that adjustments will be displayed on the broker copy of the commission processing report.

 

8. Unless you wish to add another adjustment, select the Exit command option to return to the menu.

For Value Added Costs:

6. In the Set Selling Prices field, determine if you want to set the selling price to reflect the higher of the incoming purchases or the last purchase price. (Y=Use Incoming, N=Use Last Purchase).

 

7. Unless you wish to add another adjustment, select the Exit command option to return to the menu

Note: Cost Adjustment, Cost Adjustment Name, Cost Adjustment Type, Account, Cost Center, Sales Type, Freight Type are required fields in order to add a new cost adjustment.

Note: For more information on the Cost Adjustment option see Cost Adjustment.

Security Required : Ledger - Cost Adjustments