Adjusting Inventory

Adjusting inventory occurs when an item needs to be added into stock, but there is currently none of the required item on hand, or when previously misplaced or lost inventory needs to be added back into stock. When performing adjustments from the main menu, users will need to specify the facility, location, and in some cases the lot for the material to be adjusted. Users may also perform inventory adjustments from within various inventory reports such as the lot or locations reports. The advantages of performing adjustments on these reports is that the specific lots and locations will already have been selected on the adjustment form which means less information will need to be entered and the potential for mistakes can be reduced. When performing an adjustment, anytime there is a difference in item attributes, cost, or location, DEACOM will create a new system lot to go with the chosen user lot. It is important to be careful when adjusting that you understand this concept. In certain situations it may cause an undesired result. For example – in a situation where you wish to make an adjustment for the sole purpose of changing the lot value – then care must be taken not to change the location or attribute fields otherwise a new system lot will be created.

Configuration

The item master for the item that you are making an adjustment to must have an Inventory Adjustment account and an inventory account tied to it. The item must be stocked, so the stocked property on the item master must be checked off to perform an adjustment against it.

Process

Adjusting Inventory from the Main Menu

  1. Navigate to Inventory > Adjust Inventory On Hand.
  2. Select the DEACOM part number that you wish to adjust.
  3. Select the date, in the "Transaction Date" field the assembly or product will be created and the facility where the assembly or product will be created.
  4. Fill out all required fields on the "Inventory Adjustment" form. Required fields are marked in blue. If the lot field indicates "lot required" then users will need to specify a lot number prior to performing the adjustment. If the field indicates "system" the system will select a number automatically when performing the adjustment.
  5. Value only adjustments are designed to work when running in actual or average cost modes only.
  6. Fill in any additional fields, such as attributes or notes, as necessary.
  7. Once all information has been entered click the "Apply" button to complete the process.

Note: The "Lot Date" is available to the "Inventory Adjustment" form. When this field is set, and adjusting inventory into the system, the new lots will have lot dates equal to the lot date on this field. Please see the Adjust On Hand page for additional detail regarding this field.

Newer versions of DEACOM include several new abilities, including:

  1. The ability to adjust Lot date as well as Expiration date from the Adjust Inventory On Hand function. When navigating to this form from the main menu and selecting an item, the transaction date plus the "Shelf Life Days", set on the Item Master MRP tab for that item, will calculate the expires date. However, if the user changes the transaction date, the shelf life will recalculate. Users can also change the expiration date manually, if desired.
  2. Additionally, the Lot Date field allows for users to adjust inventory in with a specific Lot date. This Lot date will override the transaction date in the calculation of the Lot’s expiration date.
  3. A third new piece of functionality seen in newer versions of DEACOM is the ability to apply a specific inventory adjustment account to each Adjustment Reason. If there is an account entered in this field, it will override the "Inventory Adjustments" account set on the Item Master Accounts tab.

Adjusting Inventory from an Inventory report

  1. Navigate to Inventory > Inventory Reporting and run a lots or location report
  2. Highlight the lot that you want to adjust > click adjust on hand
  3. Fill out all required fields on the Inventory Adjustment Form. Required fields are marked in blue. The lot number should automatically fill in from the highlighted lot.
  4. Value only adjustments are designed to work when running in actual or average cost modes only.
  5. Fill in any additional fields, such as attributes or notes, as necessary.
  6. Once all information has been entered click the "Apply" button to complete the process.

Adjusting Out Inventory

  1. Navigate to Inventory > Inventory Reporting and run a lots or location report
  2. Highlight the lot that you want to adjust > click adjust on hand
  3. Enter a negative quantity in the quantity field to adjust out the inventory no longer needed.
  4. Fill out the rest of the required fields on the Inventory Adjustment Form. Required fields are marked in blue. The lot number should automatically fill in from the highlighted lot.
  5. Value only adjustments are designed to work when running in actual or average cost modes only.
  6. Fill in any additional fields, such as attributes or notes, as necessary.
  7. Once all information has been entered click the "Apply" button to complete the process.

Notes:

  1. The "Adjust On Hand" button in inventory reports is disabled when the "Display" combobox on the Inventory Reporting pre-filter is set to "All" or "Inactive".
  2. Beginning in version 16.02.095, the "Adjustments" report in Inventory Reporting now allows users the option to view inventory lots in segments other then just "Inventory". The new view options include Quarantine, Staging, Inventory, and All. The change offers greater viability into adjustments for different inventory segments and also saves users time by allowing adjustments for Quarantine and Staged inventory directly from the Adjustments report.

Adjusting Inventory for Catch Weights

  1. Navigate to Inventory > Inventory Reporting
  2. Update report type to lots
  3. Enter in system lot number
  4. Select View
  5. Select adjust on hand
  6. Enter in a quantity
  7. Select Apply
  8. Catchweight box comes up, hit Save
  9. Go to a lots report for system lot number in Step 3
  10. See the entered quantity of records for the selected system lot.

Note: Catch weights should only ever be able to be a quantity of 1 with a catch weight per system lot.

Adjusting Items Marked For Unit Or Container Serialization

If an item is marked as "Unit Serialization" or "Container Serialization" on the properties tab of the item master, users will be required to verify or specify a serial number or container number when adjusting. In this case, the system will display the "Serial Numbers" form where the appropriate information is entered. If necessary, parts marked for container serialization may have duplicate serial numbers entered when adjusting. This is often used in situations a unique container serial number will be used for a case, but the case may contain multiple eaches and those eaches will share the same/duplicate serial number.

Note: The "Unit Serial # Gen" and "Cont Serial # Gen" fields in Inventory Options determine how serial numbers will be entered in the system. For units, the choices are "Manual", "Sequential", or "User-Defined"; For containers, the choices are only "Manual" or "User-Defined".

Adjusting out Master Lots

Beginning in 16.07.002, users have the ability to adjust out Master Lots using the "Adjust On hand" button on this report or via the Inventory > Adjust On hand transaction. This features allows companies to adjust master lots at once instead of the need to de-issue individual system lots first before performing adjustments on the de-issued lots. The security setting "Inventory -- adjust out master lots" controls access to this feature. See the Adjusting out Master Lots section for steps and additional information.

FAQ and Diagnostic Tips

I am trying to adjust some parts out of inventory via Inventory > Adjust Inventory On Hand and I am receiving an insufficient inventory prompt even though it appears that there is a sufficient quantity in stock based on the on hand quantity displayed on the form. How can I adjust these parts out of stock?

Complete the adjustment from a Lots report for the part/facility combination via Inventory > Inventory Reporting for each lot on hand.

Can I adjust out lots in "Pending QC" status?

Yes, lots in the "Pending QC" status can be adjusted via the Adjust On Hand transaction. The recommended method for performing this option is via the "Adjust On Hand" button on Inventory reports.

How do I add QC to a Finished Good that was manually adjusted in to inventory?

If a lot with QC Results already exists, adjusting inventory into that lot will assume the lots' results.

I am trying to make an inventory adjustment and I am getting the following prompt: "The inventory account must be marked as type inventory in the Chart of Accounts Maintenance." How do I fix this?

The account assigned to the inventory is no longer marked as an inventory account. Temporarily change the account type, perform the adjustment and then set the account back to it’s correct type after performing the transaction by following the steps below:

  1. Change the account type to “Inventory” via Accounting > Maintenance > Chart of Accounts. Make sure you note the account type prior to making the change.
  2. Process the inventory adjustment.
  3. Change the account type back to the original via Accounting > Maintenance > Chart of Accounts.

When attempting to backdate an Adjust Inventory On Hand transaction, why do I receive an Insufficient Inventory for the lot I'm adjusting?

If inventory in a lot is touched in any way, including a move, the system sees the lot as being used and that inventory can't be backdated before the last date the inventory was touched.

I am making a Value only inventory adjustment, but the unit cost is not changing. What am I doing wrong?

When using Standard Cost, you can not change the value of on hand inventory to anything other than the item's Accounting standard total. The Inventory Costing method being used can be found in Accounting Options.

I am trying to adjust out inventory that has failed QC from a Lots report but I'm receiving an "Insufficient Inventory" prompt. How do I adjust out these lots?

On the Inventory Reporting pre-filter, select a QC Status option of "Failed QC" instead of "All" when trying to adjust failed QC lots to get them to adjust correctly.

I am attempting to Adjust Inventory into stock and I am receiving the following message. Please Note System lot xxx is used by a part number 'xxxxxx'

System lot numbers are unique by part number. You will have to use a different system lot number on the parts you are adjusting into stock.

Can each adjustment reason have its own G/L account number?

Yes, users have the option of entering an inventory adjustment account which will be used when the corresponding reason is indicated on the "Inventory Adjustment" form. Additional information is available via Inventory > Maintenance > Reason Codes.

How can I get a report that shows the inventory item and the inventory adjustment account? If I add pr_invadj to the grid, I am getting a number and not the account.

Use the System > Query Tool to run the following query. SELECT pr_codenum, ch_account FROM dmprod LEFT JOIN dmchrt ON pr_invadj=ch_id

Can I see the name of the user who performed the adjustment?

Yes. The inventory adjustments report, via Inventory > Inventory Reporting, can display the name of the user who performed the adjustment by adding the following fields to the report: login(entered_login), first name (entered_first), and last name (entered_last) fields.