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Scenario 4 in Inventory Adjustment




Scenario 4          Decrease the quantity on hand without changing the total value


This inventory adjustment decreases the number of items on hand by two but does not change the total value of the items. The average cost of the items will increase as result of this adjustment.


1.Before inventory adjustment, below is the selected inventory detail with Average cost $ 1.782549.




2.User inputs -2 on Quantity column and 0 on unit cost.




3.In the item transaction list, there is a transaction.



4.There is no transaction in General Ledger since there is no value generated in system.



5.Then, the average cost changed accordingly.




          Quantity on hand = 102 - 2 = 100

          Current value not changed still 181.82

          Average cost = Current value / quantity on hand =1.8182

          Available = 102 – 2 = 100







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