Hi,
When you run Adjust Cost – Item Entries for an item that uses Average costing, the system creates new adjustment value entries to reflect updated costs on all related outbound value entries (including outputs from assembly orders) whenever component costs change. Those adjustment entries will include cost changes, and they can appear associated with an outbound quantity, but that doesn’t mean BC is treating the adjustment as additional physical quantity. It’s just how the cost adjustment mechanism works for average cost: it forwards cost differences to existing value entries so that inventory valuation stays accurate.
Why you see multiple value entries at full quantity:
- For average items, BC detects cost changes using the Average Cost Adjustment Entry Point and Order Level detection functions. Value entries that represent assembly outputs get adjusted cost entries based on the original quantities so that their total inventory value matches the recalculated average cost.
- In the Adjust Cost – Item Entries batch job, the system doesn’t post a zero‑qty adjustment with only cost; instead, it posts adjustment entries that mirror the quantity of the original outbound (assembly) entry so that the total cost value is correct. This is by design for average costing logic.
So, is this a bug?
No, what you’re seeing is BC’s defined adjustment behavior for average cost items. The system will create adjustment entries that reflect the original quantity of the output when forwarding cost differences. This ensures inventory valuation and cost of goods sold remain accurate according to average costing principles.
If you expected cost‑only adjustments (zero quantity):
The average costing engine in BC does not create separate zero‑quantity cost‑only entries, it adjusts value entries in a way that maintains consistent quantity/valuation relationships. If you need a different behavior (e.g., purely cost adjustments separate from quantities), that would require a custom solution or a reporting interpretation layer rather than a change to the core average cost logic.
In short: BC’s cost adjustment for average costing always posts adjustment entries tied to the original quantity, multiple value entries aren’t duplicates of physical movement, they’re adjustment entries needed to forward costs. That’s standard system behavior.
Helpful References
Manually adjust the costs of items - Business Central | Microsoft Learn
Design Details - Cost Adjustment - Business Central | Microsoft Learn
If you find this helpful, feel free to mark this as the suggested or verified answer.
Cheers
Jeffrey
