Scenario 5 Increasing the total value without changing the Quantity On Hand.
This inventory adjustment increases the total value of the items on hand by $120 but does not change the number of items on hand. The average cost of the items will increase as a result of this adjustment.
1.Picture below is the selected inventory detail before transaction with Average cost $1.8182.
2.User input $200 into Amount column with no quantity changes in Inventory Adjustment.
3.Transaction generated appeared in General Ledger.
4.In the Inventory Transaction list, there is a transaction.
5.Below is the inventory detail after Inventory Adjustment.
Quantity on hand not changed.
Current value = 181.82 +120 = 301.82
Average cost = 301.82 / 100 = 3.0182