Manage Inventory Cost Changes

This functionality allows you to change the cost price of the QLN thereby adjusting your inventory asset value for the item. The inventory adjustment will be recorded against the user selected financial accounts. The change in the QLN cost price will also update the COGS on the sales invoice if the QLN is applied to the item and is not delivered yet.

The system keeps track of QLN cost changes in the serial number manager. The system also maintains the old cost price details of the QLN with the document for tracking purposes.

Follow the below steps to create a new document for inventory cost changes:

Step 1: From the Finance Books, go to Inventory Cost Changes menu option. Click on New toolbar button to create a new document.

Step 2: In the Inventory Cost Change Document, select the QLN from the dropdown for which you want to change the cost price.

Note: The system allows you to select only the QLNs with the status ‘In Hand’ and ‘Committed’.

Step 3: Once you select the QLN, you will see the item details populated.

Step 4: Scroll down, you will see the current cost of the selected QLN. 

1. Enter the New Cost price that you want to change.
2. Once you entered the new cost price, you will see the difference. Then select a financial account from the dropdown to adjust the difference amount. You can also select multiple accounts to manage the difference in cost price.
3. Enter the difference amount for the selected financial account. The selected account will get debited if the difference amount is positive once the document is saved.
4. Click on Save.

Note: The system allows you to increase or decrease the cost price. When you enter the new cost more than the current cost then the difference will be in negative. The financial account you select will get credited.

Step 5 : The saved document will appear on the manager screen, the document also maintains the old price and the new price of the QLN.

The purchase price of the QLN also gets updated in the Serial Number manager.

You can also view this document from the Serial Number manager from the 3 dots option.

The system creates a financial transaction against this document. 

When the difference is positive:

• Inventory Asset account of selected item will get credited.
• The account selected in the document will get debited.

When the difference is negative:

• Inventory Asset account of selected item will get debited.
• The account selected in the document will get credited.

You can modify the document by clicking on the 3 dots and select Modify option to make any further changes. There is also an option to delete the document.