web
You’re offline. This is a read only version of the page.
close
Skip to main content

Notifications

Announcements

No record found.

News and Announcements icon
Community site session details

Community site session details

Session Id :
Dynamics 365 Community / Forums / Microsoft Dynamics GP (Archived) / Inventory Adjust Costs...
Microsoft Dynamics GP (Archived)

Inventory Adjust Costs Utility vs Invoice Revalue Inventory or Variance account??

(0) ShareShare
ReportReport
Posted on by Community Member

I’m looking into the Inventory Adjust Costs Utility and I’m trying to figure out the correct time/condition to use this utility.  I’ve read several threads on this but none really address when is the correct time to use this utility and its impact in different scenarios.

Should it be used AFTER you receive the goods but BEFORE you receive the Invoice?   

When you receive the vendor invoice and the invoice cost amount is different than the received cost you have two choices:
1)    Revalue inventory for the variance
2)    Post the difference to a Variance account
One of these has to be used, you have to do something with the variance right.

Now if after I used the Adjust Cost Utility to adjust the cost of the items BEFORE I receive the invoice and then the invoice comes and there is a variance and we choose either of the two choices above, didn’t we double dip?  So the utility should only be used AFTER we’ve already made any variance adjustments via Enter/Match Invoice entry correct?  It should not be used prior to receiving the invoice correct?

Thanks!

*This post is locked for comments

I have the same question (0)
  • Suggested answer
    Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 46,625 Super User 2025 Season 2 on at

    The answer would depend on how you're handling the variance Jimmy.  If you're revaluing inventory, then yes, you should wait until after the invoice is matched and posted.  If you're sending the variance to a variance account, then the timing of the Adjust Cost operation really doesn't matter.  Adjust Cost is changing the unit cost on the receipt layer in IV10200 table.

    Hope this helps,

  • Community Member Profile Picture
    Community Member on at

    Hmm…so as long as I wait for the invoice and reduce the cost either via credit to inventory or to a variance account, then the only time I can see to use the Adjust Cost Utility is if I need to reduce the cost AGAIN, that is a second time.  For example if I have a high tech item and the cost drops several times over time.  But then again, that would be considered a Write Down and to do a Write Down you would use an Inventory Adjustment Trx.  So to me using the Adjust Cost Utility seems like its only going to get one in trouble.  I don’t see a specific time/reason to use it.  Am I wrong?

  • Community Member Profile Picture
    Community Member on at

    Also, after playing with this, I see  the Inventory account is not adjusted when you run this utility.  If you're adjusting the cost of the item in the IV10200 table, shouldn't the inventory account be adjusted?

  • Suggested answer
    Frank Hamelly | MVP, MCP, CSA Profile Picture
    Frank Hamelly | MVP... 46,625 Super User 2025 Season 2 on at

    Adjust Cost is typically used if either a PO receipt or an inventory adjustment was posted at the wrong unit cost.  It's not used to adjust costs based on price fluctuations.  Yes, you would expect that the inventory GL account would be adjusted for the cost change, but it is not, unless there was a quantity of the receipt layer sold or otherwise consumed, and then, only for the quantity consumed.  That would be a good product suggestion to enter in Microsoft Connect.

Under review

Thank you for your reply! To ensure a great experience for everyone, your content is awaiting approval by our Community Managers. Please check back later.

Helpful resources

Quick Links

Responsible AI policies

As AI tools become more common, we’re introducing a Responsible AI Use…

Neeraj Kumar – Community Spotlight

We are honored to recognize Neeraj Kumar as our Community Spotlight honoree for…

Congratulations to the November Top 10 Community Leaders!

These are the community rock stars!

Leaderboard > 🔒一 Microsoft Dynamics GP (Archived)

#1
mtabor Profile Picture

mtabor 1

Last 30 days Overall leaderboard

Featured topics

Product updates

Dynamics 365 release plans