Pro Docs: Inventory Adjustments via Parts Invoicing.

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.

Making Parts Inventory Adjustments

Making a parts inventory adjustment will do the following:

• Parts on hand will by updated correctly

• The inventory general ledger will be updated, however the average cost on the part will not be corrected

• An invoice will be produced recording the adjustment

• Allows you to view all the adjustments by the purchase history of the customer INVADJD1 or through the parts history screen of the part ADJUST

1. Navigate to Financial Management > Accounts Receivable > Customer Profile.
   The Your Customers screen appears.

   
   

   Your Customers screen

2. On the Your Customers screen, click on the Need to create a new customer? Click here to add link.
   The Add Customer screen will appear.

   
   

   Add Customer screen

3. On the Add Customer screen, enter in a Customer Number.

4. Type in INVENTORY ADJUSTMENTS in the Company Name.

5. Type an X into the address field.

6. Type a City name.

7. Type a search word in the Search 1 and 2 fields.

8. Click the Save button to save any changes made.
   

9. On the Customer Profile screen, click on the Update/View Profile link.
   The Customer Profile tab will appear.

   
   

   Customer Profile tab

10. On the Customer Profile tab, select Transfer from the Terms drop down list.

11. Select Average Cost from the Pricing Level drop down list.

12. Click on the Save button to save changes made to the customer profile.

    Next you need to set up a part number for completing the adjustment.

13. From any IntelliDealer screen, clicking on the Product Support tab.
    The Product Support Quick Links screen will appear.

    
    

    Product Support Quick Links screen

14. From the Parts List, click the Parts Profile link.
    The Your Parts Inventory screen will appear.

    
    

    Your Parts Inventory screen

15. On the Your Parts Inventory screen, select the Need to create a new part? Click here to add link.
    The Add Part screen will appear.

    
    

    Add Part screen

16. On the Add Part screen, enter ADJUS into the Part Number field.

17. Click on the Save button, the Add Part screen will refresh with add fields.

    
    

    Updated Add Part screen

18. Enter an Inv Adjustment for the Description.

19. Enter GL as the Vendor Number.

    
    

    Updated Add Part screen

20. Click the Save button.
    The Part Profile tab will appear.

    
    

    Parts Profile tab

21. On the Parts Profile tab, enter 99 as the Source code.

22. Enter a sales account number,which points the sales account to the General Ledger you want the adjustment debit or credit to hit (post to).
    - or -
    Click on the Search icon.
    The Account Lookup screen will appear.

    
    

    Account Lookup screen

23. Enter the search criteria and click the Go>> link to locate the desired account.

24. Click on the account number, the Parts Profile tab will appear with the selected account number in the Sales Account field.

    
    

    Updated Parts Profile tab

    Next you need to open a parts invoice for the Inventory Adjustment Customer that was previously created.

25. From any IntelliDealer screen, clicking on the Product Support tab.
    The Product Support Quick Links screen will appear.

    
    

    Product Support Quick Links screen

26. From the Parts List, click the Parts Invoicing link.
    The Parts Invoicing screen will appear.

    
    

    Parts Invoicing screen

27. On the Parts Invoicing screen, click on the Need to create an invoice? Click here to add link.
    The Customer - Parts Invoicing Header tab well appear.

    
    

    Customer - Parts Invoicing Header tab

28. On the Customer - Parts Invoicing Header tab, enter the adjustment Customer Number previously created.

29. Click the Save button to refresh the Customer - Parts Inventory Header tab with your customers information.

    
    

    Updated Customer - Parts Invoicing Header tab

30. Select the Click here to add parts link.
    - or -
    Click on the Details tab.
    The Parts Invoicing Details tab will appear.

    In this example we are removing 2 items from the inventory.

    The entry would move the debit to the general ledger assigned to the part number.

    It is a debit entry because by default the sale account field on the part number is a credit but since the part number is getting a credit a double negative is a positive.

    
    

    Parts Invoicing Details tab

31. On the Parts Invoicing Details tab, enter cash code 2 (cash) in the Cash Code field.
    

    Note:  
    Cash code 2 will balance the invoice total to equal $0.00.

32. Enter a Part Number.
    - or -
    Click on the Search icon.
    The Parts Search screen will appear.

    
    

    Parts Search screen

33. Enter the search criteria and click the Go>> link to locate the desired part.

34. Click on a Part Number.

35. The Parts Invoicing Details tab will appear with the selected part number in the part number field.

    
    

    Parts Invoicing Details tab

36. On the Parts Invoicing Details tab, enter a 2 in the Ord field and the Iss field.
    

37. Enter cash code 2 (cash) in the second Cash Code field.

38. Enter the previously created part number ADJUST in the second Part Number field.

39. Enter a - 2 in the Ord field and the Iss field.

40. Enter Inv Adjustments in the Description field.

41. Click on the Save button to refresh/update the Parts Invoicing Details tab.

    
    

    Updated Parts Invoicing Details tab

42. Click on the Invoice button to complete the transaction.