IN Adjustment Entry

IN Adjustment Entry adjusts current inventory quantities and/or values at one location. Typical uses: theft, bad postings, write-offs, or expensing materials that were never issued through production, transfers, sales, or other stock posts — straight to a GL account. Physical-count variances can be entered here, but they are usually entered on the Physical Count Worksheet.

Location-to-location moves use IN Transfer Entry, not this form.

Before you start

• Location exists; material is set up at that location (IN Location Materials if documented).
• Cost Method is set in IN Company Parameters; location or location/category may override it.
• Unit Cost and ECM (E each / C hundred / M thousand; form help sometimes says “EM”) are editable only when Allow Unit Cost Overrides is checked in IN Company Parameters.
• Default GL Account comes from Adjustments on the Inventory Accounts tab of IN Locations. IN Location Category Override Adjustments account wins when present.

Steps

1. Open IN Adjustment Entry in a batch.
2. Seq# defaults to NEW — Tab to create the next sequence (unique within the batch).
3. Action defaults to A-Add. On an existing posted item: C-Change (already-processed transactions) or D-Delete (removes the transaction from all IN files). Toolbar Delete removes the line from the batch only — it is not D-Delete.
4. Enter Date (defaults today), Location (F4), then Material (must exist at that location).
5. Review GL Account (defaults as above). Overwrite it to expense the material to a different account.
6. Enter Units (positive = increase on hand/booked; negative = decrease; zero = quantity unchanged).
7. Review Unit Cost (from cost method / location material), ECM, and Total Cost (defaults Units × Unit Cost; overridable). For units-only, set Total Cost to 0.00. For cost-only, set Units to 0.00 then override Total Cost if needed.
8. Optional Memo (up to 30 characters).
9. File → Process Batch → validate → preview reports → post. Posting creates GL to Inventory and Inventory Adjustments for the location (or category override accounts), unless the line is an expense overwrite.

Qty vs cost vs expense

Intent	How
Units only	Enter Units; set Total Cost to 0.00
Cost only	Set Units to 0.00; override Total Cost (Total Cost posts to GL unless 0.00)
Both	Enter Units and Total Cost; Unit Cost used in the default calc follows the location Cost Method
Expense	Overwrite GL Account away from the Inventory Adjustments account

Posting effects

• Units update On Hand and Booked on IN Location Materials.
• Example decrease (Units −5, Unit Cost 20, Total Cost −100, “Damaged/Lost”): Debit Inventory Adjustments 100, Credit Inventory 100. Positive amount reverses those sides.
• Average Unit Cost updates on IN Location Materials for normal adjustments. Expense overwrites of GL suppress Average Unit Cost update unless the GL still equals the material’s Inventory Adjustment account.
• Form help says “Changes to Unit Cost only will have no impact.” Field definitions say unit-cost updates inventory when the line’s GL equals the Inventory Adjustments account for the location or category and Cost Method determines which unit cost updates — treat unit-cost-only lines carefully and verify after post.

Hard rules

• Unit Cost override must be ≥ 0.00 and requires Allow Unit Cost Overrides.
• Category GL overrides beat location accounts.
• Prefer Physical Count Worksheet for cycle-count variances.

Notes

• Related: IN Physical Count Worksheet, IN Transfer Entry, IN Location Materials, IN Locations, IN Location Category Override, IN Company Parameters, About Posting Adjustments in General Ledger.