Is there a way to change the Inventory adjustment transactions to use the 'Average' instead of the 'Replacement' unit cost?

SOLVED

We are setup for inventory adjustments to use the replacement value, this value is incorrect. Can we change it to use the average cost?

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    Alford -

    You can update the Adjustment Cost Method in the Set Up IM Options task of Sage 500 ERP.  (See screen shot below)

    Note that the cost that is used for an adjustment transaction has other factors.  For example, if you utilize Standard Cost as your inventory valuation method, this setting will have no impact on your adjustment transaction.  In this scenario, the Standard Cost for the Item/Warehouse will drive the cost.  So, while this answers your direct question you need to understand your entire system configuration to truly understand how Sage 500 ERP will determine the cost for a given transaction.

  • 0 in reply to RussG

    Hi Russ, I appreciate the response. We are already set to 'Average' that's why I was asking the question. When I go to do an Inventory Adjustment, the value reflects the 'Replacement' value and not the Average value. 

  • +1 in reply to Alford Deaver
    verified answer

    Hello Alford -

    If your concern is with the value that is displayed on the screen, then this is likely a long standing quirk with Sage 500 ERP.  Since the values of the Average Cost, Last Cost, Replacement Cost and Standard Cost can all change from the time you enter the adjustment until you post, the transaction cost is not locked in until you run the Register/Post for this process.  The value displayed during entry is just an estimate.  I would suggest you generate the Posting Registers and review them.  They should reflect the cost that you are looking for.

    If you do not see the cost you are expecting during register/post then I would report the issue to Sage Support.  However, based on past testing I believe that you will see the cost you expect.  And while I don't disagree with you that it is a bit confusing that the user interface does not display the estimated cost based on the IM Options, it may not match even if this was displayed based on the value at the time of entry.  If the cost basis changes between entry and posting, it would utilize the updated value at time of posting.

    I hope this helps.

  • 0 in reply to RussG

    thank you, that helps to clarify. I did the adjustments and accounting was satisfied with the results.