Cost adjustment

Use this function to recalculate average prices and margins on stock issue movements.

Important
Refer to the Stock valuation guide which describes the basic principles of stock valuation along with detailed information on price adjustments on receipt and issue. Click the link that applies to your Sage X3 solution:

Sage recommends setting this function as a recurring task.

Transactions

This function recalculates average prices and margins when the calculation base of the margin is the average price. When the valuation method is Average, FIFO (first in, first out), or LIFO (last in, first out) and you’ve enabled Adjust issues cost, a recalculation trigger is created for transactions that adjusts the value of subsequent movements. Cost adjustment records are stored in the Cost adjustment table (STKMVTADJ) until this function is run to update the value of movements.

When a transaction is adjusted, it's updated directly if it was not posted. If it was posted, a deletion record for the quantity and an adjustment record are created.

If the period is closed:

  • If the stock status is set to Balance adjustment, the cost adjustment is posted to the next period when that period is opened.
  • If the stock status is also closed, transactions with an effective date earlier than the invoice accounting date or actual cost calculation date are ignored. These records are not listed on the log file.

For products with average cost valuation, the value change transactions are used to change the average cost at a specific date. This is the posting date of the value change transaction. The issue adjustment function uses this average cost value to recalculate all later movements.

  • You can only adjust primary valuation methods.
  • This function ignores all products that have a negative stock total on their stock history record. See Limitations.
  • Sage recommends that you perform a cost adjustment before you calculate and declare the stock value using the Stock valuation report. All costs and variances will be absorbed into the stock costs before you recalculate the value of your stock.

Prerequisites

See also Refer to documentation Implementation

Screen management

Entry screen

Run this process in simulation mode first.

Start - end range

From company / To company (CPYSTR / CPYEND)
Filter for results within a range of company codes. For a single company, enter the same code in the From company and To company fields.
From site / To site (STOFCYSTR / STOFCYEND)
Filter for results within a range of storage sites. For a single storage site, enter the same site in the From site and To site fields.
Category start / Category end (TCLCODSTR / TCLCODEND)
Filter for results within a range of product categories. For a single product category, enter the same category in the Category start and Category end fields.
From product / To product (ITMREFSTR / ITMREFEND)
Filter for results within a range of product codes. For a single product, enter the same product code in the From/start product and To/end product fields.
From valuation method / To valuation method (VLTSTR / VLTEND)
Filter for results within a range of valuation methods. For a single valuation method, enter the same code in the From valuation method and To valuation method fields.
From user / To user (BUYSTR / BUYEND)
Filter for results within a range of operators responsible for reordering the product at the selected site. For a single operator, enter the same user code in the From user and To user fields.
Group 1 - 3 (TSICODSTR / TSICODEND)
Filter for results within a range of statistical groups. For a single statistical group, enter the same group code in the from and to Group 1 - 3 fields.
Simulation (SIMFLG)

Indicates if the adjustment is being run in simulation or actual mode.

  • In simulation mode, stock is not updated.
    A log file provides details of the proposed price adjustment. The simulation is limited to one bill of material level.
  • In actual mode, stock issue prices are adjusted.
    A log file is available if the STOTRACE—Log level stock update parameter (STO chapter, MIS group) is set.

Limitations

  1. This function will skip a product and write an error to the log file if it detects a negative stock total for that product at any time in the product's stock history.

  2. Stock totals for a product can go negative if receipt transactions are entered onto your system after issue transactions using a date that does not match the actual transaction date. To prevent this situation from occurring, if you enter receipt transactions after issue transactions the system treats stock as being received after it has been issued. The transaction dates need to match the actual physical stock movement dates.

    A correct receipt to issue date timeline is critical.

    Example

    Stock received: June 10.
    Stock issued: June 20.

    Issue transaction entered: June 23. Change the date to June 20.
    Receipt transaction entered: June 25. Change the date to June 10.

Error messages

In addition to the generic error messages, the following messages can appear during the entry:

Quantity generating a negative stock

This error is displayed in the log file when a negative stock total is detected. See Limitations. Use the Allocation date modification function (FUNIPTD) to modify the receipt allocation date for the incorrect transaction lines.

Tables used

See also Refer to documentation Implementation