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Inventory/Fuel Adjustments

Inventory/Fuel Adjustments​

Purpose To adjust the regular and duty quantity on hand (QOH) for an individual item. This program WILL make accounting entries for the adjustment. The adjustment amount will be calculated using the following formula:

Weighted Average Cost (at time of adjustment) X Adjustment Quantity

The accounting entry made at the time of adjustment depends on whether the adjustment quantity is positive or negative.

Regardless of the entry made by the system, you can override any defaults by entering the G/L Distribution window and modifying the accounting entry.

You will be required to select the type of adjustment you are making; adding to or replacing the current quantity on hand. The methods end up with the same result, but the adjustment quantity entered is different.

Important: if you are trying to initiate your inventory quantities, use the Initial Quantity Load program. That program doesn’t make accounting entries by design.

From the menu select Inventory Management, Maintenance Functions, Inventory/Fuel Adjustments.

  • Part Number/Part List - This prompt is a toggle prompt that will handle two tasks: 1) Adjusting a specific part and 2) Adjusting multiple parts using a stored List Name. Press F7 to toggle the prompt between Part Number and Part List.

  • Part Number - Enter the Part Number you want to adjust or type a part number preceded by a backslash "" to access a cross-reference list.

  • Part List - Enter the name of the Part List created in the Report Generator. Once a Part List is entered, the system will select the parts in the list and display the first part to be adjusted. See the Adjusting Multiple Parts section below.

  • Press the Save button to adjust the current part and display the next part in the list.

  • Press the Skip button to skip the current part and display the next part in the list.

  • Press the Clear or Cancel List button to exit the list function. Pressing the Clear button will display the following message: Do you want to go to the next part number in the current part list? Click Yes to display the next part or No to exit the list.

  • Resuming a List - if you exit a list and want to resume where you left off, press the F7 Back to List function key. Note: You cannot resume a list if you exit the Inventory/Fuel Adjustments program; you must reselect the list upon re-entry into the program.

  • The system will display the Current Quantity on Hand, New Quantity on Hand, and Weighted Average Cost for the selected part.

  • Add or Replace - Click the down arrow to select an adjustment method for this part. The two options are explained below:

  • Add Function - the Add function is used to increase or decrease the quantity on hand by the amount entered. Even though the function says Add, you can put in a negative (-1) number to reduce the quantity on hand (QOH). Note: You must put the negative sign before the number. For example, if the current QOH is 10 and you need to reduce it to 7, use the Add function and enter a quantity of (-3) as your Quantity to Adjust.

  • Replace Function - the Replace function is used to replace the current quantity on hand with the amount entered. The system will automatically make the necessary adjustment. For example, if the current QOH is 10 and you need to reduce it to 7, use the Replace function and enter a quantity of (7) as your Quantity to Adjust; the system will know to make an adjustment of (-3).

  • The cursor will only stop at the Duty Qty Adjust prompt if there has been activity on the part from a program called Duty Maintenance. Most users can skip his prompt.

  • Duty Qty Adjustment - Note: The Duty Qty Adjustment prompt is only active for sites using the Duty Maintenance program to receive inventory; US sites should disregard this option. For those sites using the Duty Maintenance program to receive parts, the system stores a separate quantity and weighted average cost for each receiving batch. When an item is sold, the quantity is reduced in a FIFO (First In, First Out) manner at the weighted average cost applicable.

  • Click Yes or No to whether this is a Duty Quantity Adjustment. An entry of No will only adjust the regular inventory Quantity on Hand. This will not affect the Duty Quantities.

  • Note: You cannot make a positive adjustment to a Duty Quantity.

  • Quantity to Adjust - Enter the Quantity to Adjust. The quantity entered here depends on the adjustment method (Add or Replace) used.

  • Once you enter an Adjustment Quantity, the New Quantity on Hand field will reflect the adjusted quantity on hand. If this quantity is incorrect, change the adjustment method or adjustment quantity.

  • Effective Date - Enter the Effective Date of the adjustment or press Enter to default to the current date. This is the date the adjustment will post to the General Ledger.

  • Adjustment Code - Enter an Adjustment Code or press F6 to list the available codes. An adjustment code is required in order for the Adjustment to be processed.

  • Reason for Adjustment - Enter the Reason for the Adjustment or press Enter to use the default description.

  • The description in the General Ledger will appear in the following format if posted in detail:

  • P/N [part number] reason for adjustment

  • Click in the G/L Distribution grid to add or modify the accounting entry.

  • Click the Save button to process the adjustment.

Adjusting Multiple Parts Using a Stored List

  • The Part Number prompt can be toggled to accept a Part List; press F7 while the cursor is at the Part Number field and the prompt will change to Part List.

  • Part List - Enter the name of the Part List created in the Report Generator. Once a Part List is entered, the system will select the parts in the list and display the first part. You can modify the information as desired.

  • Press the Save button to save the current part and display the next part in the list.

  • Press the Skip button to skip the current part and display the next part in the list.

  • Press the Clear button to exit the list function; pressing the Clear button will display the following message: Do you want to go to the next part number in the current part list? Click Yes to display the next part or No to exit the list. If you exit a list using the Clear button and want to resume where you left off, press the F7 Back to List function key.

  • Press the Cancel List button to exit the list function. You cannot resume a list if you press the Cancel List button.

  • Resuming a List - if you exit a list and want to resume where you left off, press the F7 Back to List function key. Note: You cannot resume a list if you exit the Inventory/Fuel Adjustments program; you must re-select the list when you enter the program.