Scenario 6 Decrease the value without changing the quantity on hand
This inventory adjustment decreases 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.Below is the selected inventory detail before Inventory Adjustment with Average cost $3.0182.
2.User inputs -120 in Amount column with no quantity change.
3.The following image is the transaction in General Ledger.
4.Transaction would also appear in Inventory Transaction List.
5.The selected Inventory information as follows.
Average cost is 1.8182
Quantity on hand not changed.
Current value =301.82-120=181.82
Average cost is 181.82/100=1.8182