Purchase Order Subscription and Adjustents - I'm Confused and would appreciate some assistance

Good evening all,

Would appreciate your feedback regarding a question I have.

When creating a Purchase Order Subscription I:

  1. Click AP > Purchase Order Details.
  2. Create New PO and select order type “Subscription”.
  3. Click in lines pane and create purchase order line for say 50 pieces of product x with unit price of $90. Net Amount = $4,500.
  4. Register the item through Inventory Management.
  5. Post the Invoice.
  6. After invoice is posted I navigate to Inventory > Transactions and select the purchased transaction.
  7. When this transaction is selected I select Inventory > Transaction is physical voucher.
  8. Navigate to the Posting Tab.
  9. On the Posting tab I notice that Financial Cost Amount is 4500.00 which is what I expected as this is specified on the purchase order line.
  10. On the Posting tab I also notice that the Physical Cost Amount field is set to 4108.50 and the Adjustment is -391.50. I do not understand this. I was expecting Physical Cost Amount field to equal 4500.00 and Adjust to be blank.

Can anyone help and please explain why I have a difference between Financial Cost Amount andPhysical Cost Amount. In addition to this why is Adjustment populated with an amount? In this case -391.50.

I look forward to your commments.

Thanks and kind regards,


I suggest you to look at the Base cost price on Item master. and you should also consider the stock model(stock valuation method) to ascertain the cost and adjustments posted.

Thanks - JK

Thanks for the reply JK. This helped me.