Adjusting Inventory

Adjust stock quantities and costs using journals and correct inventory errors safely.

Once receipted, to correct balance errors, you are able to adjust your inventory quantities and values within Bevica. This article explains the different ways of adjusting inventory.

Prerequisites

Knowledge of inventory processes within Bevica.

This article is only applicable to adjusting normal stock and not paid reserves.

Adjusting Inventory Overview

Which type of inventory adjustment should I use?

• Use an Item Journal (where Entry Type = Negative Adjustment) to write off stock
• Use a Physical Inventory Journal to do a stock take and record/post differences to actual stock levels held
• Use a Reclassification Journal to move stock from duty free to duty paid and vice versa, or as a quick way of moving stock between locations
• Use a Revaluation Journal if you need to correct inventory costs
• Use an Item Charge Revaluation Journal if you need to add or amend an additional charge against an item movement. This can also be used to correct/amend inventory costs.
• Use a Transfer Order to move stock between locations. Transfer orders give you more control, allowing you to better plan the movement and add additional charges to the transfer. Transfer orders can also be used to change locations for paid reserves.
• Use a Paid Reserve Journal if you need to correct customer paid reserves

  • Cancelling paid reserves
  • Splitting paid reserves
  • Transferring ownership of a paid reserve

Item Journal

You can post positive and negative inventory adjustments to add or write off stock. See Item Journals - Learn | Microsoft Docs.

When posting negative adjustment item journals, if you would like to write off a specific piece of stock ensure you populate the Applies-to Entry number. Also ensure the following fields are populated correctly:

• Location Code
• Variant Code
• Unit of Measure

Physical Inventory Journal

Physical inventory journals are typically used where you manage a warehouse directly. This journal is used for stock counts and recording differences to actual stock levels held. See Physical Inventory Journals - Learn | Microsoft Docs.

Within Bevica, the Calculate Inventory Bevica function allows you to set a Paid Reserves field in order to:

• Exclude Paid Reserves - populate the journal lines with quantities in stock and exclude any paid reserves
• Only Paid Reserves - populate the journal lines with only paid reserve quantities
• All - populate the journal lines with the total quantities of stock and paid reserves

If you are using the journal to record differences between Bevica and actual stock in your warehouse you must run Calculate Inventory Bevica with the Exclude Paid Reserves option.

Reclassification Journal

You can use this type of journal to reclassify stock, for example as a quick way of moving stock between locations. See Reclassification Journals - Learn | Microsoft Docs. You can also use transfer orders to move stock between locations via an 'in-transit' location.

You can also use Reclassification Journals to transfer inventory between duty status'. See Processing duty transactions.

Revaluation Journal

You can revalue the cost of your items using a revaluation journal. For more information see How to Revalue Inventory.

Within Bevica, the Calculate Inventory Bevica function allows you to set a Paid Reserves field in order to:

• Exclude Paid Reserves - populate the journal lines with quantities in stock and exclude any paid reserves
• Only Paid Reserves - populate the journal lines with only paid reserve quantities
• All - populate the journal lines with the total quantities of stock and paid reserves

If you are using the journal to revalue stock then always run Calculate Inventory Bevica with the Exclude Paid Reserves option. There is no link between the revaluation journal and the paid reserve cost.

The Posting Date used on the revaluation journal is important. It determines the date used to calculate the remaining stock at, and is also the posting date the inventory adjustment is posted with. For example:

• Purchase order for qty=600 raised, receipted 01/12/22, invoiced 31/12/22.
• Sales order SO00001 for qty=100, shipped and invoiced 10/12/22.
• Sales order SO00002 for qty=50, shipped and invoiced 03/01/23.

Running Calculate Inventory on the revaluation journal with a posting date before 31/12/22 will not create any lines as there is no invoiced value against the item.

Running Calculate Inventory on the revaluation journal with posting date of 31/12/22 will create a revaluation journal for qty of 500 because 100 has already been sold. The cost on SO00002 will be revalued. The cost on SO00001 will not be revalued. The COS on future sales orders will be at the revalued rate.

Item Charge Revaluation Journal

If you have the Distribution Cost Management extension installed, you can use an Item Charge Revaluation journal to add an item charge (positive or negative value) to affect the value of the stock. Unlike a revaluation journal, you can select any posting date and it will revalue all of the stock you are applying the item charge to, not just the quantity remaining as at the posting date. For more information see Item Charge Revaluation Journal.

Be aware that whether you use a revaluation journal or an item charge revaluation journal, the Posting Date used for the COS adjustment will be affected by the Allow Posting From and To dates in General Ledger Setup.

If the posting date of the original sale is before the Allow Posting From date, the COS adjustment will have the posting date of the Allow Posting From date.

See also Posting date on value entries - Business Central | Microsoft Learn.