Creating an Inventory Worksheet

Inventory Worksheets enable you to enter changes to the quantity or value of inventory items other than lot numbered items, serial numbered items, or inactive items. You can enter adjustments for up to 1,000 line items at a time. However, be aware that the exclusive nature of the adjustment described in the following paragraphs applies to all items you adjust on the worksheet.

Adjustment Exclusive of Previous Stock Totals

Adjustment amounts on the Adjust Inventory Worksheet form do not change as of the worksheet transaction date. The stock count is adjusted to remain at the level indicated by the worksheet on the worksheet date.

For example, you took a physical count of your inventory on January 1st, 2008. You want to enter that count. You do not want that count changed in the future due to transactions entered prior to the inventory count date. When you enter an inventory worksheet adjustment, the count remains the same as of the date of the worksheet.

For another example, you can enter an adjust inventory worksheet dated 10-25-08 and show 10 of your item Deluxe Widget in Location One. You then create an invoice dated 10-24-08 which sells two Deluxe Widgets from Location One. The quantity of the Deluxe Widgets at Location One on 10-25-08 remains at 10, as determined by the inventory worksheet.

Costing History is Averaged

When you use the Adjust Inventory Worksheet with LIFO or FIFO costing, the cost of any item you adjust is averaged. NetSuite ignores LIFO or FIFO, and your costing history is lost. To preserve LIFO or FIFO, use Adjust Inventory for any inventory adjustments. If you use the average costing method, you can make any changes you want on this worksheet.

Calculating On Hand Quantities

Inventory transactions with the same date are calculated in a particular order to find the On Hand quantity of an item. An inventory worksheet transaction posts at the start of the transaction date. Any additional inventory transactions on that date affect its figures.

NetSuite uses the default order transactions to calculate this quantity:

1. Adjust Inventory Worksheet, Distributions

   Worksheets can also be set to post as the last transaction of the day. For details, read about the Order in Day field below.

2. Adjust Inventory transaction

3. Receive Purchase Order

4. Bill Payment

5. Bill Credit

6. Item Fulfillment

7. Invoice, Cash Sale

8. Credit Memo, Return Authorization Item Receipts

For example, you enter an invoice dated 1-1-08 selling a quantity of 1 of your item Deluxe Widget. Later, you enter an inventory worksheet dated 1-1-08 with Deluxe Widget showing a quantity of 5 on hand. The On Hand count on 1-1-08 is 4 Deluxe Widgets.

In another example, you enter an inventory worksheet dated 3-13-2008 with Deluxe Widget showing a quantity on hand of 15, valued at $75. Then, you run an inventory report dated 3-13-2008 with Deluxe Widget showing a quantity on hand of 15, valued at $75.

• If you enter a cash sale for 5 widgets dated 3-12-08 and then run an inventory report, you see 15 Widgets on hand. They are valued at $75 as of 3-13-08.

• If you enter a cash sale for 5 widgets dated 3-13-08 and then run an inventory report, you see 10 Widgets on hand. They are valued at $50 as of 3-13-08.

Changing Inventory Adjustment Worksheets

When you open an existing inventory adjustment to make changes, only items included in the original adjustment appear in the list. The list shows all items from the original adjustment and cannot be filtered to exclude any of these original items.

Showing all items from the previously saved worksheet ensures that no lines are filtered out and deleted upon saving changes.

Primary

• Reference # -If enabled, you can enter a unique number to identify and track of your adjustments.

  This number appears on register and account detail reports.

  Note:

  If you use auto-generated numbering, a reference number can be manually entered if you allow the override of auto-generated numbers for an inventory adjustment. Otherwise, the reference number is generated and cannot be changed after the transaction is saved. See Set Auto-Generated Numbers.

• Adjustment Account – Select an account for this adjustment.

  Usually, this is an expense account for inventory adjustment.

• Estimated Value – This field shows the total value of the change in your inventory. When you submit the adjustment worksheet, the current cost is determined from your inventory database and your adjustment totals are updated.

  Estimated Total Value =sum(new Value) -sum(Value As Of Date Above)

  The Estimated Total Value represents the changed valuation of the worksheet transaction, not the new value for the items. So, you have an item with an on hand value of $25. You adjust it using the worksheet to have a new value of $100. After you save the worksheet, the estimated total value of the worksheet is $75, not $100.

• Transaction Order -Select one of the following options for when you want to post this worksheet:

  • First in Day – This option posts the worksheet at the beginning of the day and does not include additional inventory transactions entered during that day.

  • Last in Day – This option posts the worksheet at the end of the day and includes all inventory transactions entered during that day.

• Date – This field is populated with today’s date. You can enter or select another date.

• Posting Period – Select the posting period on which you want this transaction to post.

• Memo – (Optional) Enter a short memo for this adjustment.

  Memos appear only on account registers and on the account detail report.

Classification

• (Optional) To classify transactions, you can select values in the following fields: Department or Class

• Location – Select the location where you need to make inventory adjustments.

  When you select a location, the quantities of items in that location show in the list at the bottom of the page.

Adjustments

1. In the Inactive field, select one of the following options to filter the list of items:

   • Select No to exclude inactive items from the list.

   • Select Yes to show only inactive items in the list.

   • Select All to show both active and inactive items in the list.

   Serialized items and lot numbered items do not show in this list whether they are active or not.

2. In the New Qty column, enter a new total quantity for the item.

   Note:

   If you use LIFO or FIFO costing, the cost of any item you adjust is averaged. NetSuite ignores LIFO or FIFO, and your costing history is lost.

3. In the New Value column, you can change the auto-calculated new total value for the item.

   Note:

   If you use LIFO or FIFO costing, the cost of any item you adjust is averaged. NetSuite ignores LIFO or FIFO, and your costing history is lost.

4. For items that use bins, you can do one of the following to enter the quantity by which you want to adjust each bin:

   • If you use the Bin Management feature, in the Bin Numbers column, click the field, and then click the Bins icon. On the popup window, enter the quantity for each bin you want to adjust, and then click Done.

     Alternatively, you can directly enter the bin with the quantity in parenthesis, in the following format: Bin#(Quantity). Separate multiple bins with a comma.

     Example: Bin101(50), Bin102(43)

     Note:

     You can enter only bins associated with the item, which are listed on the Bin Numbers subtab of the item record. See Setting Up Item Records for Bins.

   • If you use the Advanced Bin/Numbered Inventory Management feature, click the Inventory Detail icon to enter the bins and quantities on its popup window.

To enter values for another item, repeat steps 1 to 4.

After you save the worksheet, your inventory is updated. You can access the associated item records to view the updated inventory details.

To view your inventory worksheets, go to Transactions > Inventory > Adjust Inventory Worksheet > List.

General Notices