Hi All, I came across an issue where by a client made adjustments to an item's cost when the quantity on hand was zero. This made the balance cost of the item distorted. This was not picked up by the client until the next month when they did a shipment and the cost of the item was incorrect.

After correcting the adjustment though it corrected the balances through out the life of the item it still did not take care of the cost of the zero quantity. See attachments.

However once the correction was done the receipt and shipments went back to the correct cost but the balance of the quantity on hand was still incorrect.


Is there a way to correct this? Or should they continue to move forward since the receipts and shipment is corrected after the adjustment was corrected?

Hi Ishana,

It's important to understand that there is only a "now" for on hand item quantities and costs in Inventory. "Now" is calculated based on all the receipts, shipments, adjustments and transfers that have been entered against an item. The "now" figure will tie to the general ledger. The "now" figure is calculated as every transaction is processed, regardless of the date of the transaction. If you print a report with a date earlier than "now", then the transactions with those dates are backed out of the on hand quantities and costs to arrive at the numbers on the report. It is for this reason that Adagio Inventory now prevents post-dated transactions, since even a keying error can result in some unexpected results.

Make sure that there are no post-dated transactions lurking in the history file using GridView or the transaction inquiry. Then, get the "now" figure correct, and move forward.

Thanks Andrew.