13.4. Cost Adjustments

Due to the fact that there is always a delay between the material transaction time and the corresponding cost calculation time, there will be cases where value and/or quantity differences exist. The Cost Adjustment window, located in Performance Analysis -> Costing -> Cost Adjustments menu can be used to fix these situations. The following fields are available:

• Document No, Description

• Account Date - date used on the resulting accounting transaction after posting the document;

• Create Cost Adjustment Lines button - is used to generate document lines, based on which the costs will be adjusted;

  • • Cost Adjustment Type - select the cost adjustment type form the available options in the list;

    • Delete Old/Existing Records - if checked, the process will delete the existing records from the Cost Adjustment Line tab;

    • Product - selection filter for the instances for which the process is run;

• Clear Cost button - is used to generate document lines used fo for the "Voided Costs" adjustment type;

  • • Delete Old/Existing Records - if checked, the process will delete the existing records from the Cost Adjustment Line tab;

    • Product, Warehouse - selection filters for the instances for which the process is run;

• Document Status - indicates the current document status;

• Document Action button - is used to manage the document status:

• • "Complete - the document will generate it's effects within the system. A completed document cannot be edited or deleted. Only completed documents can be posted;

  • "Void" - cancels all the document effects within the system;

The following types of cost adjustments are available:

• "Cost Differences" - is used to calculate and register the differences between the warehouse entry and exit amount for items. Most often, these differences occur from roundings of products with big quantities and prices with many decimals. Differences also occur when editing the currency exchange rate after obtaining the costs,

  • this adjustment type is used to register the differences in the Cost Details and when posted, will adjust the warehouse discharge from an accounting point of view.

• "Subsequent Cost Differences" - is used to calculate and register the value differences between subsequent costs. This calculation is similar to the first, but will only check "Landed Costs"-type cost elements.

  • this adjustment type is used to register the differences in the Cost Details and, when posted, will adjust the warehouse discharge from an accounting point of view.

• "Additional Subsequent Costs" - is used to calculate and register value differences that arise due to the post-discharge appearance of landed costs.

  • This adjustment type is used to register the differences in the Cost Details and, when posted, will adjust the warehouse discharge from an accounting point of view.

• "Voided Costs" - calculates and enter the value and/or amount differences for those situations when the cost queue can no longer be synchronized with cost details. These situations are met when you either modify the product type on the go (e.g. from stockable to service), or you modify the bookkeeping level of the costs without going through 0 stock.

  • the process generates the records required to void the queue costs and to obtain a perfect synchronization between the cost queue and cost details.

  • it is recommended you only use it when the onhand quantity is 0 and there are no documents that have not been posted.