I am working for a company that has not previously kept track of Item Quantities on-hand. Currently, all items are in (-) Negative Qty (and represent a few years worth of qty sold).

I would like to 'adjust' the Inventory Qty-on-Hand in Adagio to match the physical inventory.

There are approximately 500 items to adjust. I am not able to do a one-time adjustment of ALL items, but rather, will have to do Adjustments of 25-50 Items at any one time. Thus, the process will take place over a period of time.

My understanding is that I could 'adjust' this in at least 2 ways?:
- 'Edit Adjustment', or
- 'Edit Physical Inventory'.

Is one method preferable under the circumstances?
Should any 'special' GL accounts (sub-accounts) be setup for the purpose of bringing years of negative qty in line with current stock?

Background Company:
Previous to new management team, the company has only utilized a few of the Adagio modules they purchased
(Utilized: OE 8.0A, AR 8.0A, AP, IC 6.8B (partial use)) (Underutilized: GL, GV, Sales Analysis).

My Background:
Generalist. Knowledge of basic accounting principles.

Appreciate the opinions,

Keith

Hi, Keith,

These all appear to be older version modules, especially IC. Is there a reason why the company has not upgraded to more recent modules? Upgrades do many things -- provide program & help enhancements, new features, fixes, etc..

Physical inventory can also be updated via an import. However, as with all imports, this can make large adjustments to existing data. It is often best to work with your Adagio dealer/consul-
tant when doing this. At a minimum, you would want to ensure that you did a backup of your data and that no other users were in the data prior to doing the import.

Version 8.1A (current release) of IC also contains a number of points within the Help that provide more specific information about doing imports of this type.

The previous owners of the business purchased a full Adagio System(7 modules + LanPak + Crystal Reports)and did at least one upgrade.

However, they only implemented OE, AR, AP, despite purchasing the other modules.

New management is in the process of upgrading all aspects of operations. The Accounting upgrade is in the planning stages.


My role requires data that exists in the current Adagio System. Consequently, in the couple of months since I was brought in, we have implemented IC and Sales Analysis. In the interim before an upgrade, I would like to 'clean-up' some things in Adagio and get a 'feel' what the system can do. So you are probably going to see a few forum posts from me!

I'm familiar with the Import/Export feature, which I have used to clean-up and standardize both Item Names in IC and Customer Names in OE.

For adjusting the inventory though, I would prefer to do it through either a) Edit Adjustment or b)Edit Physical Inventory.
Back to the original question: Do you suggest one method over the other for any reason?

Thanks, Keith

Hi Keith

Use Physical Inventory. It is much faster. You need to thoroughly understand the steps though, especially the significance of printing the physical inventory worksheet (even if just to screen).

The only reason to use Adjustments is to adjust the costs for an item where the quantity on hand is zero and there are residual costs. I don't think this is your scenario.

I would not recommend adjusting the negative quantities up to the physical count in one step. I would instead recommend adjusting the inventory up to zero, making sure the item valuation report shows a zero total valuation, and then doing a second physical to record proper quantities.

Steve

Steve,

Thanks, your direction, which expands beyond the manual,is what I was looking for, in order to avoid creating extra work later on.

I was not aware of the "significance" of printing the physical inventory sheet beyond the fact that Adagio creates a 'physical inv. adjustment file' if checked.

Thanks also to Softrak Admin.