Adjustment Types

You can enter six types of adjustments using the Adjustments screen.

You specify the type of adjustment for each detail in an adjustment transaction.

The journal entries created for adjustments vary, depending on the type of adjustment. Quantity adjustments do not create journal entries.

Adjustment Types
Type	Effect on I/C Quantities and Costs	Effect on General Ledger
Quantity increase	Increases the item quantity on hand at the location by the number you specify. Quantity increase adjustments affect the item's unit cost, but the extended cost does not change.	Inventory Control does not create general ledger transactions for this type of adjustment because the value of the inventory does not change.
Quantity decrease	Decreases the item quantity on hand at the location by the number you specify. Quantity decrease adjustments affect the item's unit cost, but the extended cost does not change.	Inventory Control does not create general ledger transactions for this type of adjustment.
Cost increase	Increases the extended item cost at the location by the amount you specify. Inventory Control recalculates the unit cost based on the increased extended cost.	The G/L entry debits the inventory control account for the change in costs, and credits the adjustment write-off account you specify when you enter the adjustment.
Cost decrease	Decreases the extended item cost at the location by the amount you specify. Inventory Control recalculates the unit cost based on the decreased extended cost.	The G/L entry credits the inventory control account for the change in costs, and debits the adjustment write-off account you specify when you enter the adjustment.
Both Increase	Increases both the item quantity on hand and the extended item cost at the location by the increases you specify. Inventory Control recalculates the unit cost based on the increases.	The G/L entry debits the inventory control account for the change in costs, and credits the adjustment write-off account you specify when you enter the adjustment.
Both decrease	Reduces both the item quantity on hand and the extended item cost at the location by the decreases you specify. Inventory Control recalculates the unit cost based on the decreases.	The G/L entry credits the inventory control account for the change in costs, and debits the adjustment write-off account you specify when you enter the adjustment.