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Administrator Guide
Last Updated: 2024-02-09
Adjust the Cost of an Inventory Item

Adjust the Cost of an Inventory Item

You can manually adjust the average unit cost of one or more items in inventory when:
  • A worker incorrectly enters and submits a transaction, resulting in a distorted average unit price.
  • Market factors change and the unit cost of on-hand goods no longer accurately reflects their value in the market.
  1. Access the
    Adjust Inventory Cost
     task.
  2. Apply cost adjustments to:
    • Inventory Site
      : Make adjustments to all items stored in one or more inventory sites.
    • Spend Categories
      : Make adjustments to all items associated to one or more spend categories.
    • Item
      : Make adjustments to one or more specific items.
  3. To adjust the cost of individual items using a specific cost:
    1. Select
      Specify New Unit Cost
      .
    2. In the
      On-Hand Inventory
       section, enter a specific cost for each item in the
      Proposed Average Unit Cost
       column.
  4. To adjust the cost to a group of items by percentage change:
    1. Select
      Adjust Unit Cost Using Percent
      .
    2. Enter a percentage in
      Adjust Unit Cost Using Percent
       to apply to all items.
    Workday adjusts the cost of all items in the
    On-Hand Inventory
     section.
Workday initiates the
Inventory Cost Adjustment
 business process to route adjustments for review and approval before committing the costing transaction.
When you adjust the cost of an item downward, Workday creates an accounting entry that:
  • Debits the account used by the
    Inventory Cost Adjustment
     posting rule.
  • Credits the account used by the
    Spend
     posting rule.
When you adjust the cost of an item upward, Workday creates an accounting entry that:
  • Debits the account used by the
    Spend
     posting rule.
  • Credits the account used by the
    Inventory Cost Adjustment
     posting rule.