There may be times when your physical inventory on hand does not exactly match what is shown on the system. Such discrepancies could have many causes such as waste, measurement error during production, and inventory shrinkage to name but a few. When you discover such discrepancies, you can adjust the inventory 'On Hand' quantity.
To start a new adjustment, you would need to Products from the main menu, then New Adjustment under Inventory Tools.
On the new adjustment page, first specify the effective date for the adjustment. Then you need to enter the part number of the product. Type in a few letters to see a list of matching products. Once the correct product is selected, choose the correct UOM (EA for example).
A list of inventory records is shown. If you have multiple facilities defined in VersAccounts, this view only shows inventory for the current facility(Use the facility list at the top of the page to choose the correct facility).
If you are using average costing method for inventory costing, you will likely only see one record under Matching Inventory . Click on the pencil mark to adjust an inventory record.
If you are using FIFO costing method for inventory costing, you will likely see more than one records with various costs. Click on the pencil mark to adjust an inventory record .
A list of adjustment fields would appear, enter the physical quantity you have (the system would adjust inventory to match this number). Choose a variance reason. For balancing account, you would need to select an existing GL account to offset the increase of inventory value or decrease of inventory value. Consult your accountant for the correct account to use.
Click on Post Variance to finish the adjustment. After this adjustment is posted, the quantity on hand recorded in the system would match the Actual Quantity specified.
Creating your own Variance ReasonsVersAccounts provides you with some default inventory Variance Reasons. These include:
- Shrinkage, and
- Unknown Variance
- If you are not already on the User Screen, click on the 'User Screen' hyperlink on the top navigation bar.
- Click on the 'Parts' hyperlink on the side navigation bar under the heading 'Inventory'.
- Click the 'Physical Inventory Tools' hyperlink on the 'Item Management' screen.
- Click the 'Inventory Variance Reasons' hyperlink on the 'Physical Inventory Tools' screen.
- Enter your desired Variance Reason in the field provided.
- Click the 'Create New Variance Reason' button. Done.