Reviewing Negative Inventory
- An item’s inventory level should be zero or positive prior to distribution
- We can identify any negative inventory values that can be corrected by adjusting them to be positive
To adjust our inventory levels, we can use either of these forms:
- Inventory Adjustment Form: Inclusive of the previous stock total
- Inventory Worksheet: Exclusive of the previous stock total
Note: For serialized or lot-numbered items, we can use the Inventory Adjustment form only.
Guidelines for using the Inventory Adjustment form:
- NetSuite bases the cost estimate for a standard cost item on the total amount and quantity, to ensure that quantity times rate equals amount.
- If we use the LIFO or FIFO costing methods, enter an inventory adjustment to change the quantity and value of an inventory item. This adjustment preserves the costing history of the item.
- For custom transaction fields, any field marked for Inventory Adjustment is also available for the Inventory Transfer
Guidelines for using Inventory Worksheet:
- Enable us to enter changes to the quantity or value of inventory items other than lot numbered items, serial numbered items, or inactive items.
- Adjustment Exclusive of Previous Stock Totals: Stock count is adjusted to remain at the level indicated by the worksheet on the worksheet date
- Costing History is Averaged: NetSuite ignores LIFO or FIFO, and our costing history is lost
- Calculating On Hand Quantities.
NetSuite uses the default order transactions to calculate on-hand quantity:
- Adjust Inventory Worksheet,
- Adjust Inventory transaction
- Receive Purchase Order
- Bill Payment
- Bill Credit
- Item Fulfilment
- Invoice, Cash Sale
- Credit Memo, Return Authorization, Item Receipts
