Create a Value Adjustment

When you want to modify the inventory value for a period, you would create a value adjustment. For example, you received a rebate and want to apply it on the inventory.

1. In the Cost Accounting work area, click Manage Periodic Average Cost Adjustment on the tasks menu.
2. On the Periodic Average Cost Adjustments page, click Create Value Adjustment.
3. Select the cost organization, cost book, item, and valuation unit.
4. Select the period.
   You can define an adjustment only for the current open period of the cost book.
5. Select a reason code.
6. You can optionally associate an adjustment account, if the cost book is a primary cost book.
7. Click Add to include cost details for the adjustment.
8. Select the cost element and enter the adjustment value.
   Repeat step 7 and 8 for each cost element that you want to add to the adjustment.
9. Click Submit.

After you create a value adjustment, you can update it only if the corresponding period is in the Open or Pending close status. You can update the reason code and account. You can modify the value for the cost elements, add new cost elements, and delete existing cost elements.