Stock Take Unit Cost Maintenance

August 2, 2018 in Inventory Control

Purpose

This function is used to adjust the average cost of a product that is currently on a stock take run. Such a change would be by exception – usually to correct some previous problem/mistake typically caused by the incorrect processing of a stock receipt transaction value.

Because the processing of stock transactions during a stock take is allowed by the system, the average cost of items in Inventory can change as a consequence. For this reason the stock take system records the cost of the items on a stock take run so that any stock adjustments can be costed more accurately than if the moving average unit cost of the inventory items was used. It is for this reason that this function is provided in case there is a need to change that cost during a stock take.

Data Input

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Step 1 – Stock Take Run No

Stock Take Run

Enter a valid ‘Stock Take Run Number’ that includes the inventory item you want to change the cost of.  The stock take run number can be found on the tally sheets or printed tickets or on the product display information.  The run number selected must be an “in-progress” or open stock take i.e. The Stock has been ‘Frozen’ (i.e. Freeze Quantity recorded) but the run has not been finalised.

Location

Enter a valid stock location.  This designates the warehousing or inventory point for the products you want to adjust the cost for.

Reference

Enter the relevant number (docket number/transaction number) to be used to record this stock value adjustment transaction. You have up to 12 characters to enter manually.

You may alternatively choose to let the system automatically generate a reference number by allocating the next reference number in the sequence by selecting the “Next” option. Sequential reference numbers are allocated based on the details set up for Document Prefixes.
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Step 2 – Product

Product

Enter the product that you want to change the average cost for.  The product must already be on the chosen stock take run. The product selected must also be a valid stock item i.e. it cannot be a ‘Service’ or ‘Add-On’ charge product.

If the product selected for stock value adjustment is costed at Standard Cost, then you should use the Cost Maintenance routine to revalue stock and not this procedure. However if the product is a Manufactured item then the Standard Cost is derived from its Manufacturing Specification and so the cost can only be permanently adjusted by changing the specification details.
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Step 3 – Adjust Unit Cost

The form displays the ‘Freeze Quantity’, the current accumulated ‘Count 1 Quantity’, the current ‘Average Unit Cost’, the ‘Freeze Value’, the ‘Count 1 Value’ and the current ‘Stock Take Adjustment Value’ of the stock take item selected.

Current Average Unit Cost

At this prompt you can enter the new ‘Average Unit Cost’ of the product.  Note that ‘Unit’ assumes the ‘Stock Unit of Measure’ as recorded on the Product.  The system calculates and displays the new ‘Freeze Value’, the ‘Count 1 Value’ and the new ‘Stock Take Adjustment Value’ of the product using this new average unit cost.

Posting

A mandatory part of completing a stock value adjustment is to enter the “Posting” details for the transaction that will be created. You may post the value of the adjustment to a General Ledger account. Read here for more details on Account Postings.

Note: When posting to a GL account, the account entered here would NOT normally be a Stock On Hand account. The system already knows that this is a stock adjustment and so retrieves the appropriate GL account from the Product Group for the product being adjusted and uses that for one side of the GL posting. This prompt is asking for the other side of the posting, which is typically a non-balance sheet account i.e. a P&L or trading account.

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