This function enables you to easily adjust the quantity of items at a particular location or job, or to transfer items between jobs, locations, or between locations and jobs. It may also be used to adjust the average cost of an item.
When Intercompany is enabled, changes to a To or From line's GL Entity are validated to ensure that the new GL Entity belongs to the same Company as the Job or Location on that same line.
Adjustment and Transfer transactions cannot be changed or reversed directly: you must create a new transaction to effect any desired adjustments since no edits are allowed.
Use Tax calculations are implemented for job-related activity entered in this Journal. Use tax will be included in material cost, material wip, and total job cost in JCH. The computed use tax will also be posted as additional expense and liability into the GLH.
This function posts the WO (when available) and Job references to Inventory History for Job-Location and Location-Job entries for informational purposes.
Serialized items can be added if enabled via registry (see below). The adjustment to add the item would be made with the Location on the 'To' line completed. The GL Entity would be required on the 'To' line if Intercompany was enabled.
See Registry Inventory Adjustments Journal (sys-viewer-vinvntryadjstmnt) for registry entries impacting this journal as well as the Return to Inventory Wizard (in the Work Order viewer) and the Fill Lines Wizard. An entry pertaining to the Wizards may be used to set the Quantity Billed from the To Return quantity.
Main Tab
Transaction Id:
This field is generated by the system when you save the transaction.
Period Id:
The Accounting Period to which this transaction is assigned. This field should be completed if you are specifying GL Accounts.
Effective Date:
The Effective Date for this transaction: this date must fall within the range defined by the Accounting Period you selected in the previous field.
Adjustment Description:
This optional field may be used to briefly describe this transaction.
Transaction Type:
Loc-to-Loc
Loc-to-Job
Job-to-Job
Job-to-Loc
Adjustment
This field implements validation logic that ensures that the data entry for Transfers is consistent with the selected Transaction Type. For example, entry of job-related data is not permitted on a Loc-to-Loc (Location to Location) transfer transaction. Before entering your transfer data, select the appropriate Transaction Type. The Loc-to-Job, Job-to-Loc, and Job-to-Job also support Work Orders.
The Transaction Type of Adjustment permits data entry according to the previous rules due to the wide variety of adjustments that may be made. During data conversion, existing records created before this field was available will be displayed as Adjustments.
This button is designed to help you return inventory items entered on a Job or Work Order to your stock location, or to transfer all items from one location to another. This button currently supports the transaction type of
Job-to-Loc: See Inventory Adjustment Fill Lines Wizard for details on completing the Wizard screens to return stock from a Job or Work Order to a Location.
Loc-toLoc: See Inventory Adjustment Location to Location Fill Lines Wizard for details on transferring stock at one location to another.
IMPORTANT: After completing the Wizard, and making any changes needed, you must SAVE the journal entry for the transfer to be made.
User Id: Date Posted:
These display-only fields are maintained by the system based on the User Id of the individual entering the transaction and the system date when the transaction is saved.
GLH Tab
This tab displays the GL History postings associated with this transaction. The following columns appear on this tab:
Account - Account Name - Entity
Period – Company - Security
I/C (Yes if this post was generated by Intercompany Processing, No if not)
Journal - Trx Id – Date - Trx Count
Inventory
The detailed information in this tab is grouped into three lines. The first line defines which inventory item is being adjusted or transferred, its quantity, cost, and price. The second line (Adjust:From) will be completed for both Inventory Adjustments and Transfers. The third line, To:, should only be completed for transfers.
Click the Magnify button to display the Full View of the selected line.
Inventory Item Id: Inventory Item Name:
Enter the Id of an item that is being adjusted or double-click to select from a list. This field is required.
Serial Number:
This field is required for serialized or lot-controlled items. The system checks if the serialized item is actually on-hand at the From location when moving from a Location to a Job or Location when the journal entry is saved. It does not test for its presence in the To Job or the From Job. Validation prevents the transfer of more than 1 of a serial number from a job into a location.
Creating a Serialized Item: Click for Details
Removing a Serial Item from a Stock Location: Click for Details
Quantity:
If this is a transfer transaction, enter the quantity (as a positive number) that will be transferred out of the From/Adjust: line and into the To: line.
If this is an adjustment transaction, enter a positive number to increase the quantity of this item in the job or location specified in the From/Adjust: line. Enter a negative number to decrease the quantity of this item in the job or location specified in the From/Adjust: line. The GL Account must be blanked since one-sided GL transactions are not allowed.
Tip: To take Inventory costs off (-) a progress Job - enter a POSITIVE quantity and complete the Job information on the From/Adjust line.
Average Cost Adjustments: see Average Cost Adjustment Examples .
For serialized items, the only valid quantities are 1 and -1.
Unit Cost:
This field defaults from the Inventory record for manually created entries. The overall item last cost will default if the location-specific cost is zero. You may change this field in order to make adjustments to Average Costs.
Serialized Items: For serialized/lot controlled items, the Unit Cost defaults when you enter the serial/lot number. The true cost (last and average) of a Serialized time will always be the same; since it is serialized it is always dealt with as being unique and always a quantity of one. Therefore, when transferring a serialized item, the cost of the item will always be its actual purchased price (or with sales tax included), regardless of your costing method (last or average).
If this entry was generated via Wizard (using the Fill Lines Button in the Adjustment Journal, or the Return To Inventory button in the Work Order), the cost is based on the actual Job History value recorded when the item was initially added to the Work Order / Job, thus allowing the transaction to be 'undone' using the exact values present when it was initially created.
UOM:
Displays the Unit of Measure from the Inventory record.
Burden U-C
This display-only Burden Unit Cost field will be calculated by the system when the adjustment involves a Job transfer and
The Inventory Item and/or Location has the Burden Rate % field set
The Inventory Item's Inventory Group has the Apply Location Burden? field checked (and the Location's Burden Rate % field is set)
The calculated unit burden is added to the inventory unit cost for Job History, debits COS and credits the registry set income account when the Inventory Adjustment Journal entry is recorded.
Work Order Id:
This field allows the transfer of inventory:
From a Location to a Work Order (Transaction Type Loc-to-Job)
From a Work Order to Work Order (Transaction Type Job-to-Job)
From a Work Order to a Location (Transaction Type Job-to-Loc)
When the Inventory Adjustment transaction is saved, it will be written to Job History. In the Work Order, the Get Costs button allows the user to import these transactions into the Work Order, and make any desired changes to the Quantity Billed (currently not set by this function).
Equipment Id:
You must click the Magnify button to see this field. The Equipment Id from the Work Order will default, but may be changed by the user.
Job Id: Job Cost Code Id: Bill Item: Cost Category Id:
Complete these fields if inventory is being adjusted at or transferred out of this job. Note that the Location Id on this line must be blank if these Job fields are filled in.
Cost Categories with a Selection Cost Type of Equipment or Material are allowed. The Cost Category also supports enhanced filtering provided by the Cost Code's Job Cost Category Usage Filter. Cost Categories are validated (relative to Cost Codes) during data entry upon leaving the Cost Category Id field. The full relationship is validated again when leaving a child line or saving a record.
On-Hand:
If the Location field is completed, the current On-Hand quantity (if any) will appear these display-only fields.
Location Id:
Complete this field if inventory is being adjusted at or transferred out of this location. Note that the Job Id, Job Cost Code, and Cost Category fields on this line must be blank if the Location field is filled in.
GL Account:
This field is optional for transfer transactions. It must be blanked if this is an adjustment entry since one-sided GL transactions are not allowed.
If the Location Id is completed on this line, this field will default from the Inventory Asset Account specified in the Inventory Group record associated with this Inventory Item. If the Job fields are completed on this line, this field will default from the Job Cost Category's Expense Account (e.g., COS Material), overriding the Account in the Inventory Group record.
GL Entity:
If a Location is specified on this line, the system will look to the Location record first to default this field: if the GL Entity in the Location record is empty, the GL Entity will default from the Inventory Group record. If a Job is specified on this line, this field will default from the Job Cost Code record. When Intercompany is enabled, changes to the GL Entity are validated to ensure that the new GL Entity belongs to the same Company as the Job or Location.
Click the Magnify button to see the following fields.
Quantity Billable:
This field defaults from the Quantity field, and will be used to update Job History if a Work Order or Job is being impacted. It may be cleared by the user.
For example, if the Transaction Type is Job to Location, and you have specified a Work Order, when you import costs in the Work Order, the item will appear as a negative quantity AND a negative billable quantity even though the quantities are entered as positive values in this journal.
If this transaction was generated as a result of running a Wizard (from the Work Order's Return to Inventory button or the Adjustment Journal's Fill Lines button) the Quantity Billable will only default from the Quantity if enabled via registry.
Extra:
This field should be flagged if the item should be flagged as an Extra for Allow Extra Billing Items.
Billing Rate Id:
This field will default to markup a Job or Work Order is specified and the Inventory Item is NOT flagged as Use Unit Prices. If a Job or Work Order is specified and the Inventory Item is flagged as Use Unit Prices, this field defaults to unit price.
Revenue Rate:
If a Job or Work Order is specified and the Inventory Item is flagged as Use Unit Prices, this field defaults to the Unit Price associated with the Price Level specified in the Job. If the item is not flagged as Use Unit Prices, the Revenue Rate will be set according the Material Markup specified in the Job/WO's Rate Schedule.
Unit Price:
If a Job or Work Order is specified and the Inventory Item is flagged as Use Unit Prices, this field defaults to the Unit Price associated with the Price Level specified in the Job. If the item is not flagged as Use Unit Prices, the Unit Price is calculated based on the current Cost, Billing Rate and Revenue fields if this entry is being manually generated.
If this entry was generated via Wizard (using the Fill Lines Button in the Adjustment Journal, or the Return To Inventory button in the Work Order), the revenue values are based on the actual Job History values recorded when the item was initially added to the Work Order / Job, thus allowing the transaction to be 'undone' using the exact costs and revenues present when it was initially created.
Amount Revenue:
This field defaults based on the Quantity Billable and the Unit Price. Adjustments referencing Fixed Fee / Allow Extra Billing Items will only calculate revenue if the user manually flags the Extra box.
Work Order Id:
Complete this field only if an item is being transferred to this Work Order. The Job-related fields on this line will default from the Work Order header.
Equipment Id:
You must click the Magnify button to see this field. The Equipment Id from the Work Order will default, but may be changed by the user.
Job Id: Job Cost Code Id: Bill Item: Cost Category Id:
Complete these fields if inventory is being transferred to this job. Note that the Location Id on this line must be blank if these Job fields are filled in. If the Effective Date of the entry falls after the Date Closed (if any) of the Job, a warning message will be displayed.
The Cost Category supports enhanced filtering provided by the Cost Code's Job Cost Category Usage Filter. Cost Categories are validated (relative to Cost Codes) during data entry upon leaving the Cost Category Id field. The full relationship is validated again when leaving a child line or saving a record. Cost Categories with a Selection Cost Type of Equipment or Material are supported.
On-Hand:
If the Location field is completed, the current On-Hand quantity (if any) will appear these display-only fields.
Location Id:
Complete this field if inventory is being transferred to this location. Note that the Job Id, Job Cost Code, and Cost Category fields on this line must be blank if the Location field is filled in.
GL Account:
If the Location Id is completed on this line, this field will default from the Inventory Asset Account specified in the Inventory Group record associated with this Inventory Item. If the Job fields are completed on this line, this field will default from the Job Cost Category Expense Account (e.g., COS Material), overriding the Account in the Inventory Group record.
GL Entity:
If a Location is specified on this line, the system will look to the Location record first to default this field: if the GL Entity in the Location record is empty, the GL Entity will default from the Inventory Group record. If a Job is specified on this line, this field will default from the Job Cost Code record. When Intercompany is enabled, changes to the GL Entity are validated to ensure that the new GL Entity belongs to the same Company as the Job or Location.
Click the Magnify button to see the following fields.
Quantity Billable:
This field defaults from the Quantity field, and will be used to update Job History if a Work Order or Job is being impacted. It may be cleared by the user.
For example, if the Transaction Type is Location to Job, and you have specified a Work Order, when you import costs in the Work Order, the item will be added as positive Quantity and Billable Quantity.
Extra:
This field should be flagged if the item should be flagged as an Extra for Allow Extra Billing Items.
Billing Rate Id:
This field will default to markup a Job or Work Order is specified and the Inventory Item is NOT flagged as Use Unit Prices. If a Job or Work Order is specified and the Inventory Item is flagged as Use Unit Prices, this field defaults to unit price.
Revenue Rate:
If a Job or Work Order is specified and the Inventory Item is flagged as Use Unit Prices, this field defaults to the Unit Price associated with the Price Level specified in the Job. If the item is not flagged as Use Unit Prices, the Revenue Rate will be set according the Material Markup specified in the Job/WO's Rate Schedule.
Unit Price:
If a Job or Work Order is specified and the Inventory Item is flagged as Use Unit Prices, this field defaults to the Unit Price associated with the Price Level specified in the Job. If the item is not flagged as Use Unit Prices, the Unit Price is calculated based on the current Cost, Billing Rate and Revenue fields.
Amount Revenue:
This field defaults based on the Quantity Billable and the Unit Price. Adjustments referencing Fixed Fee / Allow Extra Billing Items will only calculate revenue if the user manually flags the Extra box.
To change the average cost at a location, you will make an Adjustment type entry with two lines. The first effectively zeros out the on-hand stock at the location of interest at its current cost. For example, if I had 14 items of 123106 on hand at Main, my first line will show a quantity of -14. The second line would add the inventory back (14) in at the desired cost. Note that in this example these entries also impact GL.
For positive quantities, the GL Account on the FROM/ADJUST line is used for the “CREDIT” entry & the “TO” line is used for the DEBIT entry. For minus quantities, the rules change a bit since MINUS CREDIT = DEBIT.
Line 1: Zeroing stock at old average cost
Inventory Item Id: 123106 Quantity: -14 Cost: 55.232 (the cost defaults in when you select a location)
From/Adj: Main GL Account: 50111 (creates MINUS CREDIT which will DEBIT inventory adj, restock or COS)
To: Main GL Account: 10150 (creates MINUS DEBIT which will CREDIT inventory)
Line 2: Reentering stock at new average cost
Inventory Item Id: 123106 Quantity: 14 Cost: 57.000 (manually enter the cost AFTER you select a location)
From/Adj: Main GL Account: 50111 (creates CREDIT to inventory adj, restock or COS)
To: Main GL Account: 10150 (creates DEBIT to inventory)
In this example, NO GL accounts are required to make the average cost adjustments. This would leave the GL unchanged during these transactions and a GL Journal entry may be entered if necessary to affect the proper accounts.
To adjust the average cost, you will need to make an Adjustment type entry with two lines. The first effectively zeros out the on-hand stock at the location of interest at its current cost. For example, if I had 14 items of 123106 on hand at Main, my first line will show a quantity of -14. The second line would add the inventory back (14) in at the desired cost. Note that in this example both lines are adjustments, and they do not impact GL.
Line 1: Zeroing stock at old average cost
Inventory Item Id: 123106 Quantity: -14 Cost: 55.232 (the cost defaults in when you select a location)
From/Adj: Main GL Account: (blank out the GL Account / Entity)
Line 2: Reentering stock at new average cost
Inventory Item Id: 123106 Quantity: 14 Cost: 57.000 (manually enter the cost AFTER you select a location)
From/Adj: Main GL Account: (blank out the GL Account / Entity)