Cost adjustment
Important
Refer to the Stock valuation documentation 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:
- Stock valuation if you are using Sage Business Cloud.
- Stock valuation if you are using an on-premises instance of Sage X3.
Use this function to recalculate the average price and margins when the calculation base of the margin is the average price. When the valuation method is Average, FIFO, or LIFO and you have enabled Adjust issues cost, a recalculation trigger is created for transactions that will cause an adjustment in the value of subsequent movements. This cost adjustment record is held in the Cost adjustment table (STKMVTADJ) until this function is executed to update the value of movements.
When a transaction is adjusted, it is updated directly if it has not been posted. If it has been posted, a deletion record (in quantity) and an adjustment record are created.
If the period is closed for these movements, you receive an error log with the list of records that cannot be posted and the period that needs to be reopened.
For products with average cost valuation, the value change transactions are used to change the average cost at a specific date (posting date of the value change transaction). The issue adjustment function uses this average cost value to recalculate all later movements.
Important :
- You can only adjust primary valuation methods.
- This function will ignore all products that have a negative stock totalregistered in their stock history. See Limitations.
- It is recommended to run this function prior to calculating and declaring the stock value with the Stock valuation report. Running this function will ensure that all costs and variances are absorbed into the stock costs before the stock valuation calculation is carried out.
Prerequisites
Refer to documentation Implementation
Screen management
Entry screen
Presentation
This function can be launched in bulk for all the following transactions or selections:
- Company
- Site
- Product category
- Product
- Valuation method
- User
- Statistical groups
You can run this process in simulation mode first.
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Fields
The following fields are present on this tab :
Start - end range
| Enter the company for the report. |
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| Enter or select the storage site where the selected product is active. The Selection icon (magnifying glass) only suggests products that are referenced in the products-sites table. |
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| The product categories are used to classify and filter the products according to their use. This step makes it possible to refine the selection prior to carrying out the adjustment process. This code is used in the Product record to enable selections. |
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| 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. |
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| Filter for results within a range of valuation methods. For a single valuation methods, enter the same valuation method code in the From valuation method and To valuation method fields. You can leave the From valuation method field blank to search all valuation methods. |
| End range of the valuation methods that must be applied to the products to be selected for the report. |
| Enter or select the code of the operator responsible for reordering the product on the selected site. This code is referenced in several scripts, such as the buyer’s plan, the supplier order entry, etc. |
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Filter for results within a range of statistical groups. For a single statistical group, enter the same group code in the Start/from group n and To/end group n (where n is a number) fields. |
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Limitations
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.
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, that is the system treats stock as being received after it has been issued, you must ensure the transaction dates match the actual physical stock movement dates.
A correct receipt - issue date timeline is critical.
Example
Stock received - June 10 (actual date).
Stock issued - June 20 (actual date).
Issue transaction entered onto your system - June 23 - change date field to June 20.
Receipt transaction entered onto your system - June 25 - change date field 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 of the incorrect transaction lines to resolve this situation.