Scenario 3 Increase on hand quantity without increasing value
This inventory adjustment increases the on hand quantity of inventory item by two but does not change the total value of the item. The average cost of the inventory will decrease as result of this adjustment.
1.The Inventory setting details before the transaction, where Average Cost is 1.8182 at this moment.
2.User opens the Adjust Inventory page and then input quantity 2 with Unit Cost $0.00 and Amount $0.00.
3.In the Inventory Transaction list, there is a transaction shown.
4.There is no transaction in General Ledger since there is no value generated in system.
5.Back to the Inventory Details.
Quantity on hand = 100 + 2 = 102
Current value is not change because inventory adjustment’s total is 0.00
Average cost = 181.82 / 102 = 1.7825