The Inventory Adjustment Wizard allows an authorized user to make adjustments to Inventory in terms of both quantity and cost. Additionally, the overall average cost of an Item may be adjusted utilizing this tool.
Prior to performing any steps related to the Inventory Adjustment Wizard, care must be taken to ensure all POS charge batches and Inventory batches are posted.
Set Posted filter to Unchecked to return all unposted batches.
Contact Accounting to post any listed batches before continuing to next step.
Note: Clubessential is not allowed to change employee privileges for security purposes. If you are unable to access this feature, contact your Club Administrator.
Do NOT proceed to next step if you have not checked with your Accounting Office that all POS batches for your area have been posted.
Enter the Item(s). The On Hand quantity will display.
Enter the New Cost (the new Average Cost) for the item.
Click Finish.
The Post Batch Preview will appear and will display the dollar adjustment that will be made to the G/L. Once reviewed, click Post Batch.
Again, the Inventory Transaction History Report will contain the posted batch, as well as the adjustment amount for future reference. Click to expand and view details.
Best Practices
Consult your Accounting Department prior to making any adjustments to ensure all batches have been posted.
Review Inventory Adjustment batch prior to posting to ensure desired results are obtained.
Use the Inventory Transaction History Report to help research/review adjustments impacting the Item’s cost or quantity.
FAQs
Q. How do I know all batches have been posted?
A. To review for unposted batches, within Items, click on the Approve Inventory Adjustment Batch. Set Posted filter to Unchecked to return all unposted batches. Contact Accounting to Post batches.
Q. What if I can’t access Approve Inventory Adjustment Batch?
A. Contact your Club Administrator for access issues. Additionally, contact your Accounting department to ensure all appropriate batches have been posted prior to performing an Inventory adjustment.
Q. What’s the difference between using the Override Average Cost button and adjusting the Cost on screen 2 of the Inventory Wizard?
A. The Override Average Cost feature is to be used only when resetting the Item’s overall average cost, impacting all units of the Item. If an adjustment is being made to a subset of the total quantity of the Item (for instance 2 units when a total of 10 are on hand), the cost should be adjusted on screen 2 of the Inventory Wizard, and the Override Average Cost button should not be selected.
Q, How is the Average Cost Calculated?
A, The Average cost is a running average for the lifetime of the item. The system calculates the cost that the item is receipted in by as well as any adjustments to add or remove qty of an item. The Override will reset the average cost to the amount you choose but going forward, the calculation will be based on a running average for any new Item Receipts or Adjustments. The inventory system does not use a First in First out method, so the system will not say X number of items were receipted in with cost of Y and then X number of items were receipted in with a cost of Z. The system will do Y + Z / X + X = Average cost.