Inventory Control > Physical Inventory > Using Average (Actual) Cost for Physical Inventory Adjustments

Using Average (Actual) Cost for Physical Inventory Adjustments

By default, Sage 300 uses an item's standard cost to calculate inventory adjustments for standard cost items.

If you need to adjust inventory using the average (actual) cost (instead of the standard cost) when generating inventory worksheets, you must edit the IC.INI file before generating the inventory worksheets using the I/C Generate Inventory Worksheet screen.

Warning! If you are not sure whether to use average or standard cost for adjustments, do not change the default method. Consult your accountant.

To change the method for costing physical inventory adjustments:

In the Inventory Control program folder, open the IC.INI file.
In the Physical Inventory section, select one of the following values for UseActualCostForPI:
- No. Use standard cost to calculate inventory adjustments.
- Yes. Use average (actual) cost to calculate inventory adjustments.
The next time a user adjusts inventory using the I/C Generate Inventory Worksheet screen, the method you selected will be used.