Correct an adjustment in (AI) An AI transaction posts stock into the Product Record, increasing the stock level. When posting an AI always check that the correct cost price is entered, as adjusting stock in with a zero or incorrect cost price can affect the Product Valuation reports. There is no corrections option for Product transactions. If an AI transaction has been posted incorrectly, for example with the incorrect cost price, this must be manually reversed. Sage 50 Accounts uses the First In First Out (FIFO) system, therefore you cannot simply post an Adjustment Out (AO) for the quantity that has been incorrectly delivered. This is because the AO removes the oldest stock, not the stock that you have just delivered. If either of the following are true, you can simply post an AO for the quantity delivered in error: - The Quantity In Stock was zero before this delivery
- The Cost Price of the product has always been the same
If neither of these statements are true, you must: - Adjust out the entire stock quantity so the Quantity In Stock is zero
- Adjust in the correct quantities using the required cost prices
There are two options for this: The exact method - Read more > The average cost price method - Read more > Use this method if you do not require exact figures on your product revaluation reports. This option is preferable if the product has a lot of transactions and you do not want to re-enter these. You must first calculate what the average cost price was before the stock was delivered incorrectly. - Click Products and Services, then highlight the relevant record.
- Click Reports, then click Product Valuation Reports and click Product Valuation (Average Cost Price) report.
- Leave all the Criteria options as default, then click OK.
- Make a note of the Quantity In Stock and the Stock Value. For calculation purposes, we'll call these Figure A and Figure B respectively.
EXAMPLE: in the screenshot below, Figure A = 163.00 and Figure B = 2766.15
- Close the report and double-click the relevant product's Activity tab.
Locate the incorrect GI and make a note of the Qty In and the Cost Price. For calculation purposes, we'll call these Figure C and Figure D respectively.
EXAMPLE: In the screenshot below, Figure C = 65.00 and Figure D = 36.45
- The average cost price before the incorrect delivery can be calculated as follows: [Figure B - (Figure C x Figure D)] / (Figure A - Figure C)
Using the figures above as an example:
[2766.15 - (65 x 36.45)] / (163 - 65) = (2766.15 - 2369.25) / 98 = 4.05
Post an Adjustment Out (AO) for the entire Quantity In Stock.
You must now post an Adjustment In (AI) transaction for the new quantity (Figure A - Figure C) using the average cost price calculated in Step 5  NOTE: When using the AO option, to ensure correct retrospective product valuation reports, use the correct dates.
Correct an adjustment out (AO) An AO transaction moves stock out of the Product Record, decreasing the stock level. When posting an AO always check that the correct sales price is entered. The sales price cannot be entered directly onto the Stock Adjustments Out window but is taken from the Product Record. There is no corrections option for Product transactions. If an AO transaction has been posted incorrectly, for example with the incorrect cost price, this must be manually reversed. Sage 50 Accounts uses the First In First Out (FIFO) system, therefore you cannot simply post an Adjustment In (AI) for the quantity that has been incorrectly sold. This is because the AI adds stock as the most recent transaction, not replacing the stock that was incorrectly sold. Post an AI transaction with the same date and quantity as the AO, ensuring that the cost price is correct. Re-post the AO with the correct details. [BCB:278:UKI - Personal content block - Steph:ECB]
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TIP: Highlight these if you've printed the report.
CAUTION: Do not highlight the GI from the incorrectly delivered purchase order.