Create a customer , ie.: INVADJ01, to be used for Inventory Adjustments ONLY. (You may want to create a separate customer for each of your vendors).
This customer must have a Terms Code of 'TRANSFER', and a Pricing Level of 'Average Cost', this way the sales will not be recognized and all parts are adjusted at average cost.
The Terms Code of "TRANSFER" will ensure that the customer is not considered a normal sale, therefore no bin trips, margins etc will be applied.
Create a new part number (eg. ADJUST) with the Overage/Shortage account as the sale account.
To adjust for missing parts you would create a Parts Invoice using the customer number INVADJ01. Enter your part number and quantity, just as if you were selling to a customer. When you have the total dollar amount for all parts on the invoice, sell a quantity of [-1] of the ADJUST part for the same amount as the total. The invoice should now total to zero.
The effect of the ADJUST part is to redirect the total of the invoice to the Overage/Shortage account since the "sale" account on the part will be debited when a negative quantity is used.
NOTE: This does not work when you adjust GL vendor part numbers. Since GL vendor part numbers are not acutal part numbers it uses the same logic as when you transfer GL vendor part numbers. An entry will be made to sale and COS account along with the inventory and adjustment account.
You can also add parts found into inventory by reversing the signs.
Using this method will do a number of things for you:
1. Parts on hand will be updated correctly.
2. The average cost of the parts adjusted will be added/relieved from the Inventory GL and offset to the Overage/Shortage account.
3. An invoice will be produced recording the adjustment.
4. You can view all adjustments by either the purchase history of the customer INVADJ01 or through the parts history screen of the part ADJUST.