Adjust Standard Cost action

When you select Standard Cost Adjustment from the Select Action menu, a standard cost adjustment (STDCSTADJ) transaction is written. The account in the Control GL Account field is used as the debit account. The account in the Cost Adjustment GL Account field is used as the credit account.

The INVCOST table is the primary source of the default code for the inventory control account. The system date and time is used to determine the financial period for the transaction.

The Standard Cost field on the Inventory tab is read-only so you must use the Adjust Standard Cost window to change the standard cost.

The Standard Cost Adjustment window contains the following columns:
  • Condition code
  • Condition rate
  • Description
  • Standard cost
The Standard Cost Adjustment window contains the following columns you can edit:
  • Control account for the INVCOST record
  • Cost adjustment account for the INVCOST record
  • New standard cost

To adjust standard cost of an item, complete the following steps:

  1. From the List tab of the Inventory application, display the item whose standard cost you want to adjust.
  2. Click the Inventory tab to see the inventory information of that item.
  3. From the Select Action menu, select Inventory Adjustments > Standard Cost. The Standard Cost Adjustment window opens. The standard cost value is shown in the Standard Cost field.
  4. Type the adjusted standard cost value in the New Standard Cost field. If you are adjusting the cost of an item that is condition-enabled, you can adjust the costs for all condition levels.
  5. Update the GL account information in the Control Account and Cost Adjustment fields. Adjusting the standard cost affects these values.
  6. Click OK. The Standard Cost field on the Inventory tab displays the new value. The standard cost adjustment is recorded in the inventory transactions table and an STDCSTADJ (standard cost adjustment) transaction is written to the INVTRANS table.

Use the Standard Cost Adjustment action only if you use standard cost management.

Example

Adjust the standard cost of a bearing from $22.00 to $25.00. The current balance of the item is 2.

Table 1. Source of GL account for adjust current balance
Source GL account Debit Credit Source of GL account
Inventory control account ($25.00-$22.00) x 2= $6.00 ($25.00-$22.00) x 2 = $6.00 Inventory cost adjustment account

If you capitalize the item, the standard cost is zero, and you cannot perform the transaction.

Inventory transactions for Type=STDCSTADJ

When you select Adjust Standard Cost from the Select Action menu, an STDCSTADJ transaction is written to the inventory transactions (INVTRANS) table.

Displayed fields

GL Debit Account (GLDEBITACCT) Defaults to GL Control Account field (not displayed) in the Inventory application Defaults to Inventory Control Account field on the Inventory-Related Accounts window in the Chart of Accounts application.

GL Credit Account (GLCREDITACCT) Defaults to GL Cost Adjustment Account field (not displayed) in the Inventory application Defaults to Inventory Cost Adjustment Account field on the Inventory-Related Accounts window in the Chart of Accounts application.

Database fields

INVTRANS.GLDEBITACCT Defaults to INVCOST.CONTROLACC (or INVLIFOFIFOCOST.CONTROLACC) Defaults to LOCATIONS.CONTROLACC

INVTRANS.GLCREDITACCT Defaults to INVCOST.INVCOSTADJACC (or INVLIFOFIFOCOST.INVCOSTADJACC) Defaults to LOCATIONS.INVCOSTADJACC