Hi,

Following is data on two similar instances of adjustment resulting in normal and abnormal unit price:

Physical date Tr Nature Quantity AX Adjusted Cost Amount AX Adjusted Unit Price Qunatity Running Balance
7/19/2014 1 - System Opening* 780.00 13,260.00 17.00 3,060.00
7/19/2014 2 - Uninvoiced External Receipt 1,500.00 0.00 0.00 4,560.00
7/19/2014 5 - Issuance -150.00 -2,550.00 17.00 4,410.00
7/19/2014 6 - Consumption -780.00 -13,260.00 17.00 3,630.00
7/19/2014 6 - Consumption -780.00 -13,260.00 17.00 2,850.00
7/21/2014 5 - Issuance -60.00 -1,020.00 17.00 2,790.00
7/22/2014 5 - Issuance -120.00 -2,040.00 17.00 2,670.00
7/23/2014 5 - Issuance -120.00 -2,040.00 17.00 2,550.00
7/24/2014 5 - Issuance -60.00 -1,020.00 17.00 2,490.00
7/25/2014 5 - Issuance -720.00 -12,240.00 17.00 1,770.00
7/25/2014 5 - Issuance -60.00 -1,020.00 17.00 1,710.00
7/25/2014 5 - Issuance -90.00 -1,530.00 17.00 1,620.00
7/27/2014 2 - Uninvoiced External Receipt 1,500.00 0.00 0.00 3,120.00
7/28/2014 5 - Issuance -150.00 -2,040.00 13.60 2,970.00
7/28/2014 5 - Issuance -60.00 0.00 0.00 2,910.00

1 - System Opening* - Denotes receiving through movement

On 7/28/14, why has system taken an adjustment of -2040. This results in a distorted per unit price. Under FIFO, the resultant price should have been 17 which was possible if it took -3570 ((150+60)*17).

On 7/19/14, the adjustment against exactly the same transaction results in unit cost of 17 for the subsequent transaction.

Pls let me know if a clarification is required.

Hi,

looking at transactions, the most probable reason for 0 cost can be negative inventory. Try to run inventory recalculation as of 07/28. If the transactions are consistent, then system will post adjustment with correct cost.

Pranavâ€¦

Sorry Sir for the delay in response. You are right, the balance with physical value against it went negative. This was because of purchase orders made with zero value in one case (receipts of 19/7 & 27/7, two lines) and another PO which did not pick value in the lines view of the product receipt journal (receipt of 5/7). The zero value PO was assigned the unit rate 17, however still none of the two POs show the value in the lines view of the receipt journal. Therefore recalculation is giving the same value i.e. 2040 resulting in distorted unit value of 13.6 instead of 17. So now the question perhaps should be why is the PO lines view of the receipt journal not picking the value of the receipt.

Thanks for your time and interest.

Regards,

Zaka