NetSuite expects the first transaction in an item’s history (especially for lot-numbered items) to be an Inventory Revaluation. This sets the initial value of the inventory.
However, if another transaction—like a receipt, adjustment, or transfer—is dated before the revaluation (even if added later or edited), NetSuite throws this error:
INVENTORY_REVALUATION_IS_NOT_THE_FIRST_TRANSACTION_IN_THE_ITEM_HISTORY_ERROR_MSG
When creating an Inventory Adjustment Record, I got the same error
We observed that there is no Inventory Cost Revaluation record created for this item. As per standard process, it is mandatory to create an Inventory Cost Revaluation record before performing any transaction on an item.
In this case, the system is attempting to create an Inventory Adjustment for the item, which results in the following error: “Inventory Revaluation is no longer the first transaction in the item’s history.”
To resolve this, make sure that an Inventory Cost Revaluation record is created for all relevant items before generating a transaction.