Entering an Inventory Adjustment

The Adjust Inventory form enables you to change the quantity and value of an inventory item without entering a purchase order.

For example, to account for clerical errors, changes in cost, thefts, or miscounts, you can enter an inventory adjustment.

Note the following guidelines for using this form:

• NetSuite bases the cost estimate for a standard cost item on the total amount, quantity. NetSuite uses this basis to ensure that quantity times rate equals amount.

• If you use the LIFO or FIFO costing methods, enter an inventory adjustment to change the quantity and value of an inventory item. This adjustment preserves the costing history of the item.

• For custom transaction fields, any field marked for Inventory Adjustment is also available for the Inventory Transfer. You can customize the Adjust Inventory page to remove these fields.

To enter an inventory adjustment:

1. Go to Transactions > Inventory > Adjust Inventory.

   The Inventory Adjustment page appears.

2. For OneWorld accounts, in the Subsidiary field, select the subsidiary you want to associate with this adjustment.

3. Set values in fields of each of the following sections or subtabs: Primary Information, Classification, and Adjustments.

4. Click Save.

Primary Information

• Reference # - If enabled, you can enter a unique number to identify and track of your adjustments.

  This number appears on register and account detail reports.

  Note:

  If you use auto-generated numbering, a reference number can be manually entered if you allow the override of auto-generated numbers for an inventory adjustment. Otherwise, the reference number is generated and cannot be changed after the transaction is saved. See Set Auto-Generated Numbers.

• Customer - If this inventory adjustment is a job-related cost, but not specifically billed as a line-item, select the appropriate customer or job.

  For example, a caterer bills his or her customer a per person rate for a beer and wine bar. Then the cater enters an inventory adjustment transaction to account for the number of bottles consumed.

• Adjustment Account – Select the account to which you want to post the adjustments for this transaction.

  Usually, this is an expense account for inventory adjustment.

• Date – This field is populated with today’s date. You can enter or select another date.

• Posting Period – Select the posting period on which you want this transaction to post.

• Memo – (Optional) Enter a short memo for this adjustment.

  Memos appear only on account registers and on the account detail report.

Classification

(Optional) To classify transactions, you can select values in the following fields: Department, Class, or Adjustment Location.

Adjustments

1. Item – Select the item you want to adjust inventory for.

   The description, quantity on hand, and current value of the item appear in the appropriate fields.

2. Location – If you track locations, select a location.

   The description, quantity on hand, and current value of the item adjusts based on your selected location.

3. Units – If you use the Multiple Units of Measure feature, select the unit of measurement for the quantity fields.

   The stock unit from the item record shows here by default.

4. Adjust Qty By – Enter the number of items to adjust the inventory by.

   You can use either a positive or negative number to represent the change in inventory. The updated quantity appears in the New Quantity column.

5. Est. Unit Cost – Enter the cost of each item being added to the quantity on hand.

   If you entered a negative number in the Adjust Qty By column, you cannot enter a value in this column. The cost of the items being removed from the quantity on hand is calculated.

6. For serialized or lot-numbered items, do one of the following to enter the quantity by which you want to adjust each lot or serial number.

   • In the Serial/Lot Numbers column, enter the serial or lot numbers separated by a comma or a space. Multiple lot numbers must be entered with the quantity in parenthesis, in the following format: Lot#(Quantity).

     Example: Lot101(10), Lot102(20)

   • If you use the Advanced Bin/Numbered Inventory Management feature, click the Inventory Detail icon to enter the applicable details on a popup window: numbers, quantities, expiration dates, and bins. Skip step g.

7. For items that use bins, do one of the following to enter the quantity by which you want to adjust the inventory in each bin:

   • If you use the Bin Management feature, in the Bin Numbers column, click the field, and then click the Bins icon. On the popup window, enter the quantity for each bin you want to adjust, and then click Done.

     Alternatively, you can directly enter the bin with the quantity in parenthesis, in the following format: Bin#(Quantity). Separate multiple bins with a comma.

     Example: Bin101(50), Bin102(43)

     Note:

     You can enter only bins associated with the item, which are listed on the Bin Numbers subtab of the item record. See Setting Up Item Records for Bins.

   • If you use the Advanced Bin/Numbered Inventory Management feature, click the Inventory Detail icon to enter the bins and quantities on its popup window.

8. Memo – (Optional) Enter a short memo for this line item.

9. Click Add.

   The Estimated Total Value field shows the total value of the change in your inventory.

To add more items, repeat steps 1 to 9.

After you save your adjustment, the current cost is determined and your adjustment totals are reported. You can access the associated item records to view the updated inventory details.

Related Topics

Inventory Management Overview

Basic Inventory Management

Multi-Location Inventory

Bin Management

Handling Backorders

Advanced Inventory Management

General Notices