Learn about the differences between receipts and adjustments.

When adding manual adjustment entries to Inventory Control, if costing methods LIFO or FIFO are being used, the entries are handled as described below.

Receipts: Receipts always add new value layers (level 1) as they are posted.

Adjustments: Adjustments behave differently based on whether there is an existing layer with the same cost. Adjustments are considered to be changes to a previously posted transaction (such as a receipt) and are therefore matched with a previous layer with the same cost if it exists.

1. Adjustments with the same value as other layers add to the oldest layer (for example, level 5) with the same value. This applies to increases in the physical inventory as well, in which case the quantities are added at the current standard cost.
2. Adjustments with a different value than all other layers will create a new layer (level 1) record.
3. Use a receipt type transaction if the desired result is to create a new inventory layer.
4. The normal data entry flow while entering a negative adjustment transaction skips over the cost field. To manually enter the value for a negative adjustment use shift-tab to return to the cost field and input the desired value.