Inventory cost adjustment

[michi_lin]

Hi Expert,

We maintained the Inventory Cost wrongly and would like to update the Cost as zero yen. However, the Inventory Valuation will be posted to P&L if we change the Inventory Cost directly.
Is there any way to fix the Inventory Cost without affecting P&L?

Or should we cancel all the related transactions, adjust the Inventory Cost as zero and then repost those transactions?

Thank you and appreciate for your help.

Best Regards,

Michelle

[HarshalVakil]

Hello,

if you change the inventory cost for the products, it will impact the Gain / Loss accounts in P&L based on the ADG and mapping of ADG to GLs in configurations. there is no way to avoid such postings. 

hence, if the number of transaction posted is small, you will need to reverse the transaction and update the cost and recreate them. (when you have 0 quantity in the inventory, you can change the cost and it would not have any impact in P&L. 0 Qty * cost = 0)

Regards,

Harshal

[michi_lin]

Hi Harshal,

Thanks for your reply.
Yes, as the users don't want to leave the records on P&L, reversing the transactions and repost them with the correct Inventory Cost should be the best solution.

Thanks a lot for your advice.

Best Regards,

Michelle