Pastel Adjusting the Average Cost of an Inventory Item
Pastel maintains a moving average cost price for each inventory item, which it re-calculates whenever you increase quantities. When you decrease quantities, items always move out at the average cost.
You may need to adjust the average cost of an item without adjusting the quantities. You would need to do this, for example, if you entered an incorrect purchase price, or you purchased an item into the incorrect inventory code.
The safest method to accomplish this would be to reverse the original supplier invoice, and then re-capture it at the correct price. However, there are cases where this may not be practical. You could then use the Process…Inventory Journals menu option to adjust the average price. You have two ways to accomplish this:
Correct the Last Purchase
· Enter a journal line that removes the quantity last purchased. This will occur at the average cost
· Enter another line that puts back the quantity, at the price it should have been invoiced at. Enter that price in the Unit Cost field
Calculate and Enter a Revised Average Cost
· Calculate what the average cost of the item should be
· Enter a journal line that removes the full quantity on hand of the item. This will occur at the current average cost
· Enter another line that puts back the full quantity. Enter the correct unit average cost in the Unit Cost field
I was supposed to put in 1 Toner in the inventory journal at R760 cost but instead I put in 760 at no cost.
The inventory is now showing that I have 760 of this item. If I try to take it out with Inventory Journal it will not let me put in the cost as Nil so it would show a huge loss.
Please help.
Irene
Hi there
This entry needs to be taken out in the same way. Same inventory journal. Same reference. With the amount in the out column.
You would have to have a backup. Have all the batches update.
Then you would need to go to settings, Inventory, and allow for negative stock.
Then try.
There is also the option of putting in the cost into the Edit…inventory… Item file
At the bottom right corner there is a block you can put a cost into.
It will ask you what date to set this too, and it may change your average cost.
How can I change the Unit cost when I am taking inventory out?
Hi there
If you take stock out using a inventory journal, the journal will automatically bring up the average cost price that is currently sitting in the system in the current date.
It will remove the value of the stock based on this current price. You wont be able to put in your own cost prices.
Do you want to put the cost price back to zero?
This is a different procedure that uses a tick box in your company setup. You will need to be sure how you want to proceed if you choose this method.
Bev
when there are supplier price increases do I adjust both the selling and cost prices in: Inventory Item File menu
When there are supplier price increases, the cost prices increase when you capture that supplier invoice automatically.
The selling prices can be changed in the inventory item file…selling price tab.
If there is a big price increase across the board, that can take a long time to capture, you could do a price increase from the Edit…inventory…adjust selling prices assistant.
Captured invoices with out a cost need to adjust the cost and qty but what happens to the previous invoices that was captured
This is now going to mess up your average costs on these items.
Possibly you could do a return and debit with no values, same as the invoice you made?
Then redo them with a cost?
If you only wanted to adjust qty and cost, you need to use the inventory journal.