Using Cost Adjustment

Cost adjustment types are used to control the behavior of accounting transactions directed to the general ledger where cost is being added to inventory and sales accruals.

Cost adjustment types are used for:

• Inventory Adjustments – Reason types for adjusting the value of the inventory such as count adjustments, cost adjustments, return to vendor, etc.
• Production Adjustments – Manufacturing costs that need to be added to the finished goods cost on production work orders (i.e., labor, packaging, variable overhead, fixed overhead, etc.).
• Sales Adjustments – Sales adjustments are used to create price exceptions to the base selling price for a customer. They are also used to allocate or distribute part of the selling price to cover selling expenses like freight, commissions, or rebates associated with the customer.
• Value Adjustments – Types of costs that increase the value of the inventory (including pad costs) that are added to incoming purchase orders and planned transfers (i.e., freight, unloading, warehouse/storage charges, pad, etc.).

To have cost adjustments automatically adjust your transactions, you must first set up the adjustments that you wish to use. You will need a set for each of these for each division, cost center, or sales category in the system.

Use the Available Actions links below for more information.

Security Required : Ledger - Cost Adjustments