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Reverse Negative Adjustment to Zero cost

Posted on by 282
Hi all, 
We have a customer who needed to zero the quantity on hand of an item in BC. So, they posted a negative adjustment on the item but they posted it with an incorrect cost. 
They are now looking at how the balance created upon posting this adjustment can be removed while keeping the inventory on hand as 0. 
In the Inventory Setup, their Adjust Cost Item Entries is set to Always. 
Below is the transaction 
So far the below was attempted; 
- Tried to revalue the item ledger entry but an error is returned because Negative Adjustments cannot be revalued. 
- Tried to create a positive adjustment with quantity 15,000. This creates a balance of 12,837.06 which should cancel out the incorrect adjustment balance. BUT, this has increased the inventory at hand and therefore a negative adjustment with quantity 15,000 and cost set to 0 was posted. This resulted in the positive and negative adjustment that were posted to fix the issue, to cancel each other out leaving us with the original incorrect balance still there.
- Thought also about temporarily setting the Adjust Cost Item Entries in the Inventory Setup to Never. Then post a positive journal of qty 15,000 that generates the same balance as the incorrect entry. And then finally reduce again the qty on hand by posting a negative adjustment wity qty 15,000 and cost set to 0. In theory this works but the problem is that these entries will then be picked up the next time the adj. cost item entries batch job will run. Unless there is a way to skip this from happening? 
Any help on the matter is appreciated! Thanks in advance!
  • Suggested answer
    Jun Wang Profile Picture
    Jun Wang 4,053 Super User on at
    Reverse Negative Adjustment to Zero cost
    I don't recommend to use reevaluation for this situation. The fix should be very simple. if you posted an incorrect negative item adjustment entry. You could do the following
    create a positive item adjustment entry in item journal for that item, then the key is to use Applies from entry field.
    expose this field through personalization if you don't see it.
    Click it and choose the previously posted negative item entry with incorrect cost. in the below example,
    I reversed item entry 799, the incorrect unit cost is 7.8
    post it. 
    then you could create another negative item adjustment entry with correct cost 
    hope it helps
    Jun Wang
  • Suggested answer
    KasparsSemjonovs Profile Picture
    KasparsSemjonovs 3,117 Super User on at
    Reverse Negative Adjustment to Zero cost
    Negative entries cost is based on the applied Positive entry cost.
    So if the cost is wrong, then there are 2 options:
    - if the entry is applied to the wrong positive entry, You can change the application and run the "Adjust Cost - Item Entries" process, to adjust the costs.
    - the positive entry has wrong cost posted before - in this case You can use the Revaluation journal to update the cost. Then also run the "Adjust Cost - Item Entries" process to adjust the costs of related entries.

    If something else is wrong, that doesn't allow You to apply to correct positive entry, You can post a correction positive entry, just like this negative one, and apply each other to cancel it out. The cost to Positive entry of these 15000 pieces can be 0. After that, enter the correct Negative adjustment and apply it to correct positive entry.

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