How do i adjust an item that on the inventory valuation, that has no quantity and no cost, but has an extended value?

Hi Wema,

By definition, an item that has no quantity and no cost cannot have an extended value. Where are you looking to see the cost and qty amounts?

Try using the Item Inquiry with Sales/Costs to look at your item, and the Costs tab. This screen will display the Total qty on hand across all locations and the Total cost of all these items. What do you see here?

If it turns out that you have zero quantity but a non-zero Total Cost, this is called a 'residual cost' on the Item valuation report. The 'easy' answer is to make a backup of your Inventory data and then post a Cost-only Adjustment to change the total cost to zero.

But before doing this, you probably should do some investigation as to why this has happened. Do you allow quantity on hand to go negative? Was the cost changed on a previous adjustment or sales return or physical inventory count or something else? Ensure your Item History is up to date (including Purchase Orders) and look at the transactions posted against the item. Sort by date to see the flow, and perhaps the Stock Card report could also be useful.

Arbitrarily posting cost adjustments could make things worse, so it's good to have background before making this change.