Two questions.
1. I performed an inventory count at the end of may 2009. I went through the steps and when i was done the inventory valuation report had 5 pages of items with residual costs. I just want to clarify the reason for this happening. Before the count, the inventory valuation report shows average unit value and units. When the inventory is being input from the count, I see the quantity which matches the inventory valuation report, but does the cost on the screen come up as recent cost? is this why there are residual values...and is there any way to make this stop.

2. it is now mid month and i fixed the problem above with an adjustment to cost and all the items now do not print on the valuation report. But i have items on the report that have been entered in from the count that no cost was input at the time of the count in may. I now want them to have a cost (i was reconciling 7,000 items and gave up on inserting costs when i was 75% done) because i didn't know what they would be. so now i print the inventory valuation and i see a quantity of four and no costs. I went into adjustments and increased costs. If i printed the inventory valuation for today the average unit value will take the cost i increased and divide by the number in quantity.

however, if i print the report using yesterday's date (this way it prints on a shorter report, it does not show). why is this and is this going to cause problems at the end of June when i do another count.

thanks
laura

1. Residual costs are a fact of life but can be managed. My guess is you ended up adjusting the quantity and not the cost.

2. If you adjusted the cost today and then printed the report using yesterdays date, todays adjustmnets will not be included.

I suggest you get your Adagio Consultant to give you some guidence on how to maintain inventory in Adagio so that you have a better understanding of what you are doing and how to do adjustments correctly.

I did an inventory count and that is the only time I have problems with residual costs....they do not appear during the month at all.

my best guess was that the inventory worksheet brought up recent costs and quantity on hand instead of the average value that was on the inventory printout. Before the physical count i had no problems at all and it wasn't until i posted it.

i let the costs default to what they were because i was assuming that the costs would be the value that they are on the GL for which is the average value.

so thanks for the advice but someone who knows the answer would be helpful....does the inventory worksheet bring up recent costs or the average unit value? My consultant could not answer that questions for me either, so it is why i came here.

Hi, Laura,

The physical inventory uses the average cost not the most recent cost.

that is what i expect it to use. and when i input the physical inventory i don't change the costs of any items. all the day ends are done prior and nothing is processed while the count is being input. then why would i always have these residual costs after i input the count?

thanks
laura