First of all, I would assume that the script I have provided above returns no records, right !
Even if it does return records, I am only concerned about the document type (3), a transfer document. Since no transfer documents have consumed the receiving layer, then you don't need to worry about the after effect of the Adjust Cost Utility
In order to correct, you need to ensure that the correction criteria should encompass all the modules in order to correct the following;
- Vendor Balance | Purchasing Module
- Item Cost | Inventory Module
- Account Balance | GL Module
As for the General Ledger and the Inventory Module, the Adjust Cost Utility will ensure that the cost will be corrected accordingly in order to either increase/decrease the cost along with the GL account balances. Although, still the Accounts Payable (linked to vendor) is not corrected yet !
The next step is to consider the vendor, I have mentioned previously that you need to post either a return or a credit memo in order to either increase or decrease the accounts payable accordingly.
Finally, closing the purchase order and creating a new one is required (though, it doesn't have any financial effect)
Case Study
I will tp simplify the illustration by providing a simple example that is similar to your case in order to illustrate the effects of the correction criteria;
Assuming the following;
- Receiving an item | Unit Cost = 12
- Enter Match / invoice | Unit Cost = 10
- Adjust Cost | Unit Cost = 20
The journal entries are shown below;
| Transaction | Account Number | Debit | Credit | Unit Cost |
| Receiving | Inventory Account | 120 | 0 | 12 |
| Receiving | Accrued Purchases | 0 | 120 | 12 |
| Invoice | Inventory Account | 0 | 20 | 10 |
| Invoice | Accrued Purchases | 120 | 0 | 10 |
| Invoice | Accounts Payable | 0 | 100 | 10 |
| Adjust Cost | Inventory Account | 100 | 0 | 20 |
| Adjust Cost | Accrued Purchases | 0 | 100 | 20 |
| Credit Memo | Accounts Payable | 0 | 100 | 20 |
| Credit Memo | Accrued Purchases | 100 | 0 | 20 |
| Accounts | Debit | Credit | Balance |
| Accounts Payable | 0 | 200 | (200) |
| Accrued Purchase | 220 | 220 | 0 |
| Inventory Account | 220 | 20 | 200 |
I would still recommend running the corrective documents on a test company as you have already started, and you could check the following as soon as you finish correcting;
- Item Unit Cost - along with the cost layers details if any
- Vendor Balace
- Accounts Balances (Inventory Account, Accured Purchases and Accounts Payable)
Your feedback is highly appreciated in order to dig for further details if required.
Best Regards,
Mahmoud AlSaadi